So you needed a loan. After being rejected in one bank, you went to another bank, but even there you failed. What’s the problem? It seems you have an income certificate and the amount required is not exorbitant. These problems mostly occur in people with poor credit ratings. What does that mean? It’s simple: at some point in your life, you refused to repay the loan or made regular contributions.
For banks, customer creditworthiness applies to one of the most important criteria. And once you’ve established yourself as an irresponsible borrower, it’s difficult to correct a negative reputation. After all, the bank is absolutely not interested in working with people who tend to violate contracts. Their living conditions play almost no role for them. It is much more important how you show yourself as a reliable borrower.
How does a bad credit history develop? There are several disorders that can help:
- Total amount of non-return of credit (this is the most serious violation and you should not expect a positive credit decision at all in the future).
- Repeated delays in payments for a period of 5 to 35 days or more (average severity of the injury)
- One-off payment delay of less than 5 days.
The last point is not considered a violation
It is common for a borrower to redeem money just before the payment deadline, and they simply don’t have time to reach the bank at the right time. Practically nobody cares about such little things. With regular delays of less than 5 days, the ideal credit history cannot be mentioned. However, most banks do not see any serious grounds for rejection.
If payments are overdue for more than five days, up to 35 is already a bad credit history. However, if the debt has been paid in some way, the bank may be able to apply for a new loan with your application.
Customers who have not paid out credit in the past are not taken into account by the banks – they are immediately rejected.
However, a bad credit history can be a person who has always reliably paid the bank’s debts. Obstacles to receiving funds can be litigation, recovery of maintenance payments, or even a little something like debt to a neighbor.
How can the situation be remedied?
Many are interested in where to get a bad credit history loan. Of course, such possibilities are possible. However, it is unlikely that you can work with the official structures. And you have to pay for it. Therefore, it is better to think about how to correct (or rather, correct) your credit history.
- Visit a bank branch and present evidence that you have changed your attitude towards credit at the moment has become responsible. For example, you can submit declarations confirming the ongoing payment of various bills (utilities, etc.) in recent years. A big advantage would be the availability of documents that demonstrate high solvency and regular income.
- Explain the reasons for the non-payment of the loan debt (if the reasons did not depend on you and were related to illness, job cuts, salary cuts, etc.).
- Another proof of your trustworthiness can be deposits with this bank (from 1 year).
A cash loan with a bad credit history can be used in special services. In this case, however, you have to make exorbitant interest payments.