Several reasons for a bad credit rating
There can be several reasons for a bad credit rating. However, the fact is: in most cases, there will be no more credit or the loan amount will be lower than desired by the borrower. But even despite bad creditworthiness, there are opportunities to take out a loan. Especially two different types of credit are interesting for consumers. On the one hand the small loan, on the other hand the credit despite bad creditworthiness over one of the on-line credit market places. For the banks in Germany, the credit rating is decisive for granting a loan. If too many loan requests have been made, too often invoices are paid too late or not at all, this can lead to a knock-out criterion for the loan request.
Debit interest rate of 4.83% – 15.49% (depending on creditworthiness) fixed for the entire term, effective annual interest rate: 4.90% up to a maximum of 15.99%, net loan amount: 1,000 – 100,000 euros, contract period: 12 – 120 months. Representative example: borrowing rate fixed at 7.98% for the entire period, effective annual interest rate: 8,29%, net loan amount: 10,000 euro, contract period: 72 months, monthly installment: 175,29 euro, total interest cost: 2620,68 euro, total repayment ( including all fees): 12.620,68 Euro.
Possible exclusion criteria
Sometimes the chances of getting a loan depend on other factors, in spite of poor credit ratings. The loan amount may be too high, the purpose is not accepted by the bank, or the term is too long. Another possible is that the installments are too low or too high.
What does bad credit mean?
For the credit rating, there are very different criteria. On the one hand, it is the negative features of the credit bureau query and, on the other hand, the score value. If there are no medium or hard negative features, this does not mean that a loan is granted. If the score is too low, that too can lead to a credit cancellation.
Small credit despite poor credit rating
There are now more and more small loan providers. Since these are mostly not German banks but a bank with a foreign seat, the credit requirements are often different. The credit rating is also taken into account with these providers, but the credit bureau entry is not scrutinized, since foreign banks do not have access to the credit bureau score.
With special offerers there are possibilities to receive a small loan, with which one only has an income of a few hundred euros.
Online credit marketplaces as a chance despite poor credit rating
A credit despite bad credit rating, there are also on-line loan pages. There, the loan request is then not applied for directly as a loan, but presented as a possible “project”.
If enough donors want to invest in the project, eg a car repair, the purchase of a new washing machine, a necessary renovation, etc., the loan will be paid out.
Loan with guarantor or pledge
In addition to the two options mentioned, a borrower with a poor credit rating can also take a guarantor into the loan agreement. But if the borrower has a low income and a credit bureau entry, he has to do that. Sometimes there are also options to take life insurance or the like as collateral.
It is also possible to take out a mortgage loan. For example, cars can now be used well for such a loan.
Credit without top credit rating?
Taking a loan despite a bad credit rating is not impossible. Meanwhile, there are more and more opportunities to come to a loan despite poor credit rating. Pay attention also to our provider list in the field of small loans!
Incidentally, there are no alternatives for loans without credit bureau, for which advance costs have to be paid. You should not get involved in such offers. Reputable providers of such loans never require prepayment or home visits.