Many people have moments in life when money is urgently needed, but they are not available, but there are unfulfilled obligations to banks. And the result is that getting a loan quickly bad credit history is in the way. A loan is needed, and many turn to banks that provide loans, setting their interest on the use of money.
Today, there is a common database in which all people who have ever taken a loan are entered. It is called common because all credit organizations have access to it. And before issuing a loan, the bank must check the entire credit history of each borrower to ensure its solvency and to foresee possible risks. Of course, there is more confidence in those people who did not have problems with previous payments. But you should not despair, because even with a bad credit history, many banks still issue loans.
What is a credit history?
This is information that is collected for each person. It shows the performance of the obligations taken by the borrower. The documentation, which contains information about the credit history, consists of three parts:
- Title - indicates general information about the citizen (name, date of birth, passport details, TIN, pension insurance number).
- Main - reflects the place of registration and the address where the person lives at the moment. If an IP is executed, then additional information on state registration is also contained. Here you can find all the information about any types of loans, terms, amounts and percentages that were or are at the moment, as well as the rating of the borrower (if any).
- Additional - all requests from other organizations are indicated when and who requested data for this person.
What is a bad credit history?
It is formed from several components:
- If the payment has not been paid on time. Even if the transfer of money via mail or other banks is late even for one day.
- Not fully paid loan. Even because of a few cents of unpaid debt, a citizen will be put on the “black list”, which will indicate that it is undesirable for him to issue a loan. With a bad credit history, getting a loan is problematic.
- Information about the guarantor - his reputation automatically deteriorates if the person for whom he is responsible delays payments. This means that at another time he may not be registered as a guarantor, and even he will be denied a loan.
How to get data on your debt to banks
For this, a Central Catalog has been created, otherwise - the Bureau of Credit Histories, where you can just request the necessary data. Often there is such a situation that a person goes to the bank, and there they refuse him. The borrower has previously taken a loan, paid everything honestly and cannot understand what it is.
There may be several reasons, for example, interest left overdue or one payment was missed. Therefore, getting a loan with bad credit history is no longer possible. For verification, it is better to find out full information about yourself in the Central Catalog.
Information is provided absolutely free of charge, but only once a year. All subsequent reports will have to pay. They are formed within ten days from the date of application. You can get them by e-mail or in writing.
The request can be sent directly through the bank, mail or fill out an electronic application on the site.But in this case, you need to know the code that must be specified in the application. It is formed on the basis of a former or existing loan agreement.
Getting a loan
There are many situations due to which credit history is spoiled. And banks begin to refuse loans as soon as they get access to it. But do not get upset. It is still possible to get a loan with bad credit history. There are several ways.
Special companies
How to get a loan with bad credit history? For this purpose, you can use the services of brokerage agents. Employees of such firms have their own analytical base and can literally consider a huge number of banks in just a couple of days. One or more of them is chosen, where obtaining a loan is most likely.
It should be borne in mind that these brokers have their own connections in banking circles and will be able to assist in opening a new line of credit. But there is also a big minus. Such specialists ask for a very large sum of money for their services. Therefore, the benefits of this option to the borrower are not so many. It’s worth resorting to their services only if you need money very urgently, and there are no other options to get them.
How to get a loan with bad credit history without a contract
You can open a bank card. They are in great demand, because they are very convenient and do not require a lot of time to get. Oddly enough, when issuing a card, banks do not so carefully check their credit history, and some do not. Therefore, the probability of obtaining a loan on the card is quite high.
And bank loyalty is explained simply. It is beneficial for him to attract as many customers as possible and make a profit faster. Therefore, the time for consideration of applications is significantly reduced. And as a result, the loan is transferred to the card very quickly.
Purchasing goods through stores
How to get a loan with bad credit history? What matters is what money is required for. For example, when buying household appliances or furniture, it is not necessary to take a loan from a bank. Most stores now work directly with them, and some outlets offer installment plans on their own.
In this case, a damaged credit history is unlikely to matter. This is also attractive because in case of delivery of goods by installments, that is, payment of installments for them, the stores do not even take interest. This is beneficial to both the buyer and seller.
Getting a loan with a guarantor
Sometimes you need to get a loan in monetary terms. And what if a bad credit history? In this case, taking a loan is problematic, but still possible. The option with a guarantor increases the chances of getting the necessary money.
The bank must be sure that the issued funds will be returned back. You can find a person or organization that will act as a guarantor. For the bank, this will serve as a guarantee. And if the borrower does not pay the amount taken for any reason, then it will be recovered from third parties who acted as guarantors. The bank is usually happy with this option. But there are pitfalls.
Getting a loan with bad credit history is possible, but now it’s hard to find someone who will act as a guarantor. Few people need these obligations; everyone has enough of their problems. But even if such a person is located, then he must have a certain income, which he must confirm officially from the place of work. For this reason, sometimes you have to make a deal and pay a sure amount for the loan to his guarantor for his services.
Another pitfall is the bank's confidence in the guarantor. The best option is if this person is already a client of this bank, in which it is planned to take a loan. At the same time, it is important that his credit history is impeccable. This greatly increases the chances for the borrower to receive money.
Without guarantor
How to get a loan with bad credit history without a guarantor? If necessary, you can take a loan in cash, if you take out your property as collateral (land, cottage, house, apartment, car). In this case, the bank calculates the loan amount, and the borrower submits documents of ownership. But it must be borne in mind that initial investments in assessing the value of property and its insurance will be required. It is not a bank that is spent on it, but a borrower.
Express loans
How to get a loan with bad credit history through a bank? Many financial institutions have offers that are provided at a high percentage. These are the so-called express loans. The term for consideration of an application for such a loan is very short, and the bank has practically no time to review its credit history. Therefore, getting money in this case is much easier than on a general basis, where, most likely, there will be a refusal.
Multiple simultaneous requests
You can immediately submit a number of applications to different banks. Despite the bad credit history, you can get a loan in large reputable institutions. Some of them have special reserves. Therefore, in some cases, banks meet and issue loans. With a bad credit history, of course, it is more difficult to get them, but there is a chance. In this case, it is worth submitting applications to several large banks at once. And if you take into account the regional, then many of them do not look at credit history at all.
Prepayment
That is, you sign a document in which you assure that you will pay the full amount within one or two months. Opening banks are interested in attracting customers. Therefore, it is often proposed to take a minimum loan under such conditions, despite previous loans with poor credit history that were taken at other banks. In this case, you can take a loan and repay it ahead of schedule in the first month.
Thus, the borrower will prove himself to be a responsible customer, and the subsequent sums of money will be issued to him without any problems. Even if he has a bad credit history in the past. This is to some extent a kind of trick that the borrower can use. If he needs a large amount, he can take a small one, give it away almost immediately, after which the bank can offer him a large one. The main thing is to prove yourself. The most difficult thing here is to independently find a bank that can issue this necessary first loan.
