Getting a good loan with a bad credit history seems like something out of the realm of science fiction, though we can sometimes ruin such a financial feature without even realizing it.
To understand what other options are left to apply for a bad credit history, you first need to understand what your creditor is risking when you approve a loan and why your credit history is damaged.
The Bank deliberately does not wish to engage in any possible action to repay the outstanding loan. For this reason, borrowers who have already entered into debt with any bank, even, are not considered as borrower candidates in popular and highly rated structures.
Your credit history may have worsened
Even if you have not made a payment for a number of months in a row on the specified date of the month at the time of the previous loan repayment (date specified in the loan agreement). Even if you have then repaid the loan in full, delays still significantly reduce your borrower’s potential. But, the bank’s main condition for making a profit is the accurate and planned repayment of loans on schedule. By the way, early repayment can also lead to a bad credit history.
Often borrowers with bad credit history who have lost all hope simply drop their hands. Unfortunately, not everyone is aware of several options for obtaining a loan with a bad credit history that can work both together and separately.
We assure the creditor of our solvency . First, you will need to print your credit history and, if possible, provide appropriate explanations for your late payments (you were in the hospital and can be confirmed, the banking system was down, etc.). If you devote maximum attention to every point in your credit history, then such “checkboxes” will become much less.
Documents confirming that:
- You have a high enough income.
- You are not in the same position for the first month.
- You have a good cash flow in your bank account.
- You have extra income (renting out property, alimony, pension, benefits).
Information about your property
Another way to get a loan with a bad credit history is to provide the creditor with personal property information. If you own an apartment, land, etc., you can probably expect to get a loan with a bad credit history. With such collateral, the creditor fully guarantees the return of the money he has made, and in the event of non-repayment of the loan, the pledge will be sold and the proceeds will cover all the bank’s expenses.
If you do not want to risk real estate, you can turn to investors who will allow you to get a loan with a bad credit history against your car collateral.
In any case, the fact that a customer has a certain property and can document it will have a positive effect on the bank’s decision to grant a loan to a person with a bad credit history.
Take a big loan with a bad credit history
It’s no secret that a borrower who goes to a small loan company for cash will be guaranteed a refusal with a negative financial history. Such bodies shall consider the potential borrower on the basis of rating point programs. And your credit history plays a pretty important role: the financial ability of such a customer is close to zero.
When applying to a bank for a fairly large amount of credit, you will not be dealt with by point systems, but by people – credit specialists. In this case, you can highlight the positive facts of your biography, justify your past mistakes in repaying your earlier loan, and simply convince yourself of your credibility at any given point in time.
Communication by the “man + man” formula is significantly different from simple mathematical analysis or solving a complex formula, so the client will be able to positively use his or her psychological portrait to obtain credit with a poor credit history.