Where can a credit with bad creditworthiness or a credit despite bad creditworthiness take up? And what is to be considered? For borrowers, there are various options, depending on whether they only want to borrow some 100 USD in the short term or a large amount in the long term. Of course, the shorter the period, the greater the chances of a loan. And even if dubious credit intermediaries promise something else: There are also cases in which there is no chance for a loan without a guarantor or a pledge.
There are ways to get a credit even with bad credit. As you can find out in our credit despite poor credit counseling!
Apply for Camibank.
With this small loan amounts of 100.00 to 3.000,00 USD can be borrowed for two to six months. However, the interest rates are comparatively high, they are at a similar level as for a credit line.
But you hardly get a credit line with a bad credit rating. In addition to offers such as direct money, this gap also includes microcredits. Because they usually serve the bridging until the next salary, they are referred to in English as payday loans, so as payday loans. The most famous provider in Germany for such loans is Neofunding.
The company from Berlin offers loans with a term of seven to 30 days and up to a height of 500.00 USD. If the first loan was repaid on time, you can borrow from the second up to 1,000.00 USD.
The interest rates are still slightly above those of the direct money. However, the flexible design also helps to save money. Because the duration within the given frame can be defined on a daily basis, the repayment can be placed exactly on the day after the salary. That saves interest. Although Neofunding now also offers terms over 30 days, but these are usually disproportionately expensive. It is better to pay the loan first and apply for a new loan if necessary one month later.
For example, anyone who needs 500 USD on the 20th of a month and receives his salary on the 30th fixes the first day of the following month as the repayment date. The repayment of course tears a big hole in the budget. If you can only repay 300 USD per month, at the end of the month, when the money is used up, you will take out a new loan of 200 USD, which will also be repaid after the next salary payment.
This also increases the chances of getting a loan despite a bad credit rating. Because the longer the term, the stricter are the selection criteria. In any case, the 6-rate option can only be selected by existing customers.
At significantly higher interest rates.
Anyone who does not get credit there will still find credit intermediaries making contact with foreign banks, such as those in Switzerland. Because there the credit bureau is not active, a non-paid mobile phone bill, which is a fatal in Germany, the bank is not known there.
However, there is no guarantee of a credit despite low creditworthiness. Because even foreign banks, it is important to get their money back – ideally with interest and compound interest. Therefore, the creditworthiness is also checked there. But because this happens after a different procedure than the credit bureau applicants can have a chance, which get no loan in Germany.
The reputable providers do not require any upfront fees and make no unrealistic promises. Again, not everyone gets a loan and more expensive than a civil service loan, of course, they are.
Bank has been more focused on brokering bank lending in recent years.
Basically, the platforms all work alike. Borrowers request a loan and provide information about their creditworthiness. For this usually also documents must be submitted, for example, the account statements of the past three months, a copy of ID card and a payroll or a revenue-surplus invoice for self-employed. The credit platforms divide the applicants into different credit ratings. At Lendersco they range from A to E, where E is the worst grade.
Of course, the lower the credit rating, the higher interest rates applicants have to pay. However, there is always the risk that not enough financiers will find themselves on a “bad credit” credit.
Which platform is individually better shows our platform comparison. Above all, borrowers with very bad credit ratings have better chances overall with Lendersco, while Trucredit is the much larger provider.
The money is then transferred.
If you do not have a valuable pledge or if the mortgage loan is too expensive, you still have the option of a guarantor. He agrees to the bank to take over the late payment. Usually, banks require a direct guarantee. This means that the guarantor is treated as if he were the debtor himself.
If a rate is not transferred, it must therefore take over the repayment immediately. Usually, the creditor must first initiate a foreclosure. Only if that was unsuccessful, the guarantor can be prosecuted. In the case of an enforceable guarantee, this restriction does not apply.
Therefore, usually only close relatives or good friends will be found as guarantors. And of course, then, it is especially true that the loan project must be calculated solid, so that they do not have to pay the bill in the end. If you have found a guarantor, you can take out a normal loan if the credit rating is good, even on very favorable terms.