Credit in difficult cases – recognize the dangers

Getting a loan approved in difficult cases often seems impossible. A lack of an employment contract, many negative entries in the Credit Bureau or a high debt burden often ensure that a loan can not be approved by normal banks. While there are still ways to get a loan depending on the case, it often takes more effort than would be the case with a normal loan.

Due to the often shortage of money, people are forced to reach for every straw that is available in order to get a grip on their own financial situation with a loan. Unfortunately, some providers are taking advantage of this hardship to capitalize on the desperation of the loan seekers.

Get credit in difficult cases

Get credit in difficult cases

The easiest, but often fruitless way to get a loan is usually the way to your own house bank. There you usually know the customer’s financial situation exactly and can try to respond individually to their wishes. Depending on the criteria that matter, loans can often be realized that would be rejected by other banks.

Especially when the financial situation is very tight, your own bank can help to ease this. However, the prerequisite for this is that the customer can convince the bank advisor. This is done primarily through a clear and structured analysis of your own situation and a list of the options that would be created by the required credit. Especially when the loan is to be used to replace old liabilities and bring a new structure to the customer’s payment activities, bank advisers are happy to be persuaded by their customers’ arguments.

If the difficulties lie in a lack of employment or a large number of negative Credit Bureau entries, the house bank will not be able to help. The guidelines on lending are particularly rigorous in these areas and prevent lending to customers who have been debited in this way.

Only the provision of sufficient security could help to get such a loan approved. However, it must be said that in such difficult cases there is often no or insufficient security.

The only option left would be a loan guarantee in which another, creditworthy person is entered in the loan as a guarantor. However, this person undertakes to cover all the costs of the loan if the original borrower is no longer able to continue paying the loan on time. Therefore, such a guarantor above all needs enormous trust in the current borrower in order to be available as a guarantor in such a case.

If you have a negative Credit Bureau, go abroad

If you have a negative Credit Bureau, go abroad

Cases in which a large number of negative Credit Bureau entries have accumulated and which are therefore no longer considered creditworthy are considered to be particularly difficult. Collateral may no longer help here, since the bank automatically assumes that these borrowers will not pay properly. For these people, the only way often leads directly to foreign banks, which Credit Bureau do not use to evaluate loans.

Since the other European countries have their own credit rating agencies, a Credit Bureau query is not one of the tools. Thus, the way is clear for a loan from abroad with otherwise creditworthy factors. The easiest way to access and compare the offers available there is via the Internet.

German borrowers mainly use banks from Switzerland, since they can be contacted without obstacles due to the same national language. Using various comparison computers on the Internet, the customer can compare the conditions of the different loans and thus quickly and easily find the right credit institution.

In order to apply for a loan from this bank, the borrower can usually find a corresponding form on their website in which they can enter their details. In addition to the desired loan amount, this also includes information on the amount of income and the previous loan amounts still to be paid. After entering all the data, the early loan application is checked and evaluated by an automatic system.

If the check reveals that a loan could be approved, the customer can have the information provided there sent directly to the bank. Within a few days, the borrower will now receive mail from this bank, in which the corresponding loan agreement is located. Together with the required documents, this contract can be returned to the bank so that it can decide on the loan application. If the loan is approved, the sum is usually available to the borrower within a few working days.

Loans in difficult cases – beware of promises that are too good

Loans in difficult cases - beware of promises that are too good

When money is urgently needed in difficult situations, people often grab every straw. Some companies have specialized in precisely these people. Unfortunately not to help them, but to draw the last bit of money out of their pockets. Even if the majority of credit brokers do their work seriously and properly, one should not neglect the black sheep of the branch. With often unrealistic promises and credit guarantees, they advertise their own offers and hope to win a corresponding amount of customers.

In principle, these dubious companies always work according to a similar pattern. As a rule, the customer always has to make a certain payment with such a company so that a loan can be approved. Be it in the form of an “ insured sum” or by paying a cash on delivery fee for “important” documents at the post office.

Once these payments have been made, the customer determines, for example, in the above-mentioned case that the envelope does not contain the hoped-for loan contract, but only the application for a loan to be arranged by the company in question. With these methods, people’s hope and good faith are exploited in order to generate a profit at their expense.

Personal loans as a solution for difficult cases

Personal loans as a solution for difficult cases

Personal loans are ideal for personal emergency situations in which the banks cannot or do not want to help. In such a situation, one should primarily rely on a loan from the surrounding area. Even though there are various credit intermediaries on the Internet that provide personal loans, many of the cases mentioned here are grounds for exclusion with these intermediaries.

The easiest way to do this is to contact a financially more independent friend or family member. These contacts make it easier and quicker to take out small loans than with another method mentioned here. The most important thing here is to conclude a loan contract based on the negotiated loan terms in order to provide the lender with legal protection. It is also advisable to only take out those loans that can also be paid within the specified period.

It is difficult to get rid of a bad reputation among friends. In difficult cases, it can often seem almost impossible to get a loan. The stronger the obstacles, the more effort has to be made to obtain a loan and the more difficult it is to obtain one. However, even in difficult cases, solutions and ways can often be found to bridge the financial bottleneck with a loan.

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