Monthly Archive: November 2019

Opt for a personal loan with bad credit: be responsible!

Although this is strongly discouraged, we are sometimes led to take out a personal loan despite bad credit. In this case, it is essential to manage your loan responsibly in order to avoid getting bogged down and causing your credit rating to plummet.

Taking a personal loan with bad credit: a mistake to avoid

personal loan with bad credit: a mistake to avoid

We are constantly asked to take out loans at high rates, whether for store cards or personal loans. And when you have a bad credit score, it is certainly not the first thing to do. On the contrary, it is rather necessary:

  • reduce the use of cards

  • pay the monthly payments on time

  • stop applying for credit

  • do not take out a card or a loan until your credit score returns to an acceptable level.

But since no one is immune to a hard blow, sometimes you really have no choice but to take out a personal loan to solve a financial problem, pay your bills and avoid penalties. that this is not the best idea for a person with a bad credit rating.

A personal loan can help a person with a bad credit rating get out of a tight cash position and get them back on their feet financially. Provided that the loan is used wisely, that the monthly payments are paid on time and that no other loan or credit card is taken out until the credit score is acceptable.

Use personal loan responsibly

Use personal loan responsibly

The use of personal loans must remain exceptional for several reasons:

  • this type of loan is very expensive because the rates are high, especially if it is granted without a credit check to a person with a bad score

  • personal loans are expensive because interest weighs heavily in monthly payments

It is therefore necessary to be vigilant in order not to get into debt but on the contrary to do everything in your power to repay your debts and improve your credit rating and in particular:

  • do not use loan money to pay for compulsive purchases and increase debt

  • Absolutely settle its maturity each month, the advantage with personal loans being that they are often fixed.

  • be punctual in the payment of monthly payments, a single day of late payment can affect the credit rating

  • pay more than the monthly payment in order to settle the loan as quickly as possible and pay less interest

  • do not take out a new loan or a new credit card

But responsible management is not only about the use of the personal loan: the borrower must also manage his credit cards wisely, taking care in particular not to use more than 30% of his credit capacity and by paying the balance of his purchases every month.

Taking out a loan despite bad credit is not difficult but remains expensive. If this solution is sometimes the only one available to the borrower with low credit, it must be reserved for force majeure. In order not to degrade the credit rating, it is imperative that the monthly payments of the loan are all honored in time in hours, and that additional payments or prepayment are made if possible

Debt repayment without credit bureau

No debt restructuring without debtor advice

No debt restructuring without debtor advice

In Germany, there are no loans without the credit bureau is consulted. However, brokers allow loans to be made in this country despite negative bookings. Debt debt without credit bureau information, however, should be treated with care. If there is debt rescheduling without credit bureau information, the person should first ask a debt counselor for advice.

Credit institutions always want to have a security for a loan. Lending despite bad creditworthiness is possible even if collateral or values ​​are available for hedging purposes. But beware, if the installments are not paid, the property quickly falls under the blow and the desire to own a home is broken. A debtor talk first looks at the documents and tries to find another agreement with the vendors.

Only when really nothing works and a rescheduling must be carried out absolutely, one can think about this step. It certainly can help to include debt counseling. However, this requires debt counseling, as the layman is usually unable to carry out debt debt restructuring without credit bureau information.

German banks do not offer rescheduling without credit bureau information.

German banks do not offer rescheduling without credit bureau information.

credit bureau information is fundamentally one of the most important credit requirements for German credit institutions and for foreign credit institutions domiciled in Germany, even in the case of rescheduling. In the case of a bad credit rating, the credit institutions either terminate immediately or further loan collateral is required. However, a rescheduling without credit bureau is carried out by many credit bureaus.

Debt rescheduling is always necessary when the monthly burden of loans puts so much strain on the budget that it becomes difficult to maintain wealth. With a positive credit rating and lower creditworthiness, the principal bank is able to demand additional security. The same applies to a negative credit bureau. Debt debt restructuring looks different at an online or direct bank.

Because access to the borrower is almost exclusively via the network, with the credit bureau information ever a preliminary decision on a loan. For many Internet banks with additional credit protection, bad credit can not be improved. A rescheduling plan without credit bureau information is not possible at all credit institutions. In order to avoid further deterioration of an already negative credit rating, debtors must select the rescheduling of debts as a purpose.

If the German credit institutions reject a loan agreement for the debt repayment on the basis of credit bureau, the consumers can turn to a reputable credit agency. They are licensed under 34 c GEO and cooperate with various banks in Germany and abroad. In particular, the cooperation with foreign banks allows debt debt restructuring without credit bureau.

However, this loan has a small incision. The one who wants a free rescheduling with a loan mediation gets either 3,500, 6,000 or even 7,500 USD. The credit bureau has not obtained any information about the credit bureau, so that the applicant can prove further credit requirements. For many credit intermediaries, the loan requirements are very similar. The self-employed, the free, pensioners, working and unemployed people do not get loans without credit bureau.

In 2016, this ceiling was $ 1,079.99 for single persons without offspring. Also, some credit intermediaries require a higher salary. The age limit for a loan is of course 18 years. Applicants who have reached the age of 60 do not get loans from many credit bureaus. With a sufficient credit of up to 7,500 USD, consumers can also seek debt debt directly from a foreign bank without credit bureau.

Such loans come, for example, from Luxembourg or Liechtenstein. The loan without credit bureau is to have at this house bank for a price of 3500, 5500 and 7500 USD. As an alternative to a foreign bank or a credit intermediary, credit markets offer loans on the net that can be used for debt restructuring.

These so-called peer-to-peer networks bring together private financiers and borrowers. However, debt restructuring without credit bureau is not possible. For this purpose, the credit bureau information is processed confidentially. For the candidate this means that the credit bureau credit report is only used for risk assessment, as long as there are no serious negative features. If all information is available, the credit can be published on the web portal.

The payment is for legal reasons by a house bank. Without credit bureau information, a debt restructuring with domestic credit institutions is not possible. Credit-free credit lines are provided only by foreign credit institutions or via credit intermediaries. However, the loan amounts of the non-credited loans are not sufficient to cope with increased debt debt restructuring. The marketplaces for credit products can be a good choice for credit intermediaries.

The payout amount is high and the credit rating is not as stringent as with credit institutions or credit intermediaries.