Loans despite negative Credit Bureau and Financial Credit Institutions are mainly issued in the private sector via private lenders, since banks often do not provide loans for such borrowers. For them, especially after the banking and financial crisis, such a risk is simply not calculable, which is why they tend to reject it.
A borrowes guarantor
A liquid guarantor can significantly change the situation for the borrower, since his additional liability compensates for the borrower’s missing income and negative Credit Bureau, but due to the high risk, many people are more reluctant to provide a guarantee. Especially when the loans are in the medium or even high range, the risk of default for the guarantor can hardly be calculated, since the guarantor has to step in as an overnight liability for the guilt.
Of course, he also receives no share of the actual loan amount, which is paid 100 percent to the borrower. Loans in spite of negative Credit Bureau and Financial Credit Institutions from the private sector behave very similarly, whereby usually no guarantee has to be presented here. A family loan is very rarely associated with a classic “check” of creditworthiness, since the financial and professional circumstances of the borrower are already known to relatives who are closer. The personal relationship here has decisive bearing on a refusal or acceptance of the loan.
Increase creditworthiness again in the long term
Regardless of whether a loan is actually received or not, your own credit rating should always be strengthened in the long term. Requesting your own Credit Bureau entry for inspection is absolutely free and helps to clear up any ambiguities, because Credit Bureau is also not a faultless company. Otherwise, the loan, regardless of whether paid out by banks or private lenders, should be repaid in full and on time, so that further negative entries in the Credit Bureau can be avoided.
Taking on a part-time job can also use Financial Credit Institutions to secure the repayment of smaller monthly installments without the risk of over-indebtedness for the borrower from taking out the loans despite negative Credit Bureau and Financial Credit Institutions. If the loan is taken out by a third-party lender, the conditions are often not competitive.
In spite of negative Credit Bureau and Financial Credit Institutions, such lenders try to make a very good investment by granting the loans, which in return exceeds the classic banking products many times over. They are also well aware that for many unemployed people, lending is the last chance to get a loan at all. Often there is actually no other choice for Financial Credit Institutions receivers.