Many people at least once in their life faced financial difficulties, and to solve them, they resorted to credit. Well, if your credit history is positive, but if not everything is so successful? Perhaps a lot of time has already passed since the last mistake, and now you are completely solvent, but, unfortunately, with a damaged reputation, you will not be approved for a loan. Can this situation be resolved? How to get a loan with bad credit history and open arrears in Moscow?
Reasons for Bad Credit
If this is not the first time you have applied to the bank for borrowed funds, then most likely you know that your credit history will be a prerequisite for it. The following types of loan violations are distinguished:
- a serious violation is when the borrower has not repaid the loan at all;
- the average is when the delay in the loan is from five to thirty-five days;
- A normal violation occurs when the borrower has not paid the amount of the obligatory payment for more than five days.
Are there banks that do not check credit history?
There is an opinion that somewhere on the Internet there is a list of banking institutions to which the reputation of a potential borrower is not interesting. But this is not at all true. Credit history is analyzed by all financial organizations. There are simply some types of banking and non-bank loan programs that allow you to get borrowed funds even customers with bad credit history.
But it’s worthwhile to understand that the conditions for such loans cannot be called advantageous, since banks take great risks lending debt to borrowers with a damaged credit past, and therefore they set high rates for them and severely limit the size of the credit limit. However, do not be upset before time. When considering the possibility of issuing a loan, banks are interested not only in their credit history, but also in your official income and place of work, property or surety of third parties, which you can offer him as security for a loan.
If you have a bad credit history, make sure that the rest of the items are in order.
Is it possible to get a loan with a tainted history?
There is an opportunity to get a loan with a negative history, but, as stated above, the conditions will not be as favorable as in the usual case. With a spoiled credit biography, it is difficult to get a loan for the following purposes:
- home purchase (mortgage);
- car purchase (car loan);
- business expansion.
For these purposes, the borrower is unlikely to be able to get borrowed funds, but he can fully count on consumer lending.
In order for you to be able to count on more favorable loan conditions in the future, you must try to improve your credit history. How to do it? You can take a loan to buy household appliances and repay it on time. Typically, banking institutions analyze data on loans taken over the past two years. It is worth emphasizing that information on credit histories of borrowers is stored in the BCI for up to fifteen years.
Another way to convince the bank to give you borrowed funds is to show how you regularly fulfill your obligations to pay for utilities, taxes and alimony.
How to get a loan with bad credit history in Moscow or in any other city in Russia? First of all, you need to understand how bad it is. What kind of delays were there, and did this lead to a conflict with a credit institution? Or perhaps the bank has sued you or referred your case to a debt collection agency? If you answered the last question in the affirmative, then be prepared for a negative decision by the bank. But twenty years ago, citizens somehow managed without loans, try to start a new life - at the expense of only their own funds, which do not need to be returned to someone.
However, if in the past there were only dissatisfied calls from the bank and small penalties for late payments, then you have a chance to get a treasured loan. But contact state banks such as Sberbank, Alfa-Bank, etc., it makes no sense. Undoubtedly, their conditions are very attractive, but they try to deal only with “decent borrowers”.
Which banks will meet?
Way how to get a loan with bad credit history in banking institutions, exists. Contact medium and small financial organizations, they offer borrowed funds at an expensive percentage, but they show that they are ready to take a little risk. These banks include:
- "Renaissance Credit";
- "Eastern Express";
- OTP Bank;
- Trust Bank, etc.
Yes, their loan conditions cannot be called acceptable - they have high rates and commissions, but you are not a perfect client for them. Therefore, you actually have no choice.
Another option is to contact a newly created bank, which has just begun its financial activities in the banking products market. Such institutions are often ready to issue a loan with bad credit history from the age of 18, but this does not mean that they do not check the credit history of the client, they just may risk lending money in order to increase their client base. For such customers, they also set higher interest rates.
Microloans
If you urgently need a small amount of money for a short period of time, and you can’t find a common language with banks, you can contact microfinance organizations. Here, interest rates on loans can also not be called profitable, but the chance to get a loan with a bad reputation and delinquency in these organizations is great.
Get a loan with a broker
You can actually get a loan with bad credit history through brokers, but, of course, for a fee. Typically, brokers take as a reward from two to twenty percent of the borrowed funds. The modus operandi and the connections they have with some banking institutions often help borrowed money to citizens who, it would seem, should not receive them.
It will be good if you find a broker who takes the payment after the full work is done, that is, it works without prepayment. He will analyze the current situation, and on the basis of the analysis, he will say whether he can help you get a loan with bad credit history and delays.
Get a loan with collateral
If you do not want to pay for the services of a broker, you can apply for a loan with a bad credit history on the security of real estate or on the guarantee of third parties. To borrowers who provide real estate or other property to the bank as collateral for a future loan, credit organizations are more loyal. But the proposed property should not appear in another loan pledge agreement that is not yet closed. Otherwise, you will be refused a loan.
By offering liquid collateral, you can expect to receive a sufficiently large amount of borrowed funds on the most favorable conditions. The chance to get a loan with bad credit secured by real estate is great.
Apply for a credit card
Another way to get a loan with bad credit history without inquiries is to get a credit card. Now most banks, especially those that have recently been in the banking services market, issue credit cards, not taking into account the poor credit history of the client. In addition, if you have a salary card from a banking institution or have an open deposit, then you can contact them for a credit card.
The advantage of this method is the high age threshold for issuing a credit card. The chance to get the necessary amount for urgent needs with a card is great, but it is worth emphasizing that the loan is issued in non-cash form.Cash can be withdrawn at any ATM, but banks set withdrawal fees.
There are also disadvantages to a credit card. When applying for it, get ready for the fact that banks have a negative attitude towards those who want to get a loan with bad credit history and delays. Therefore, they set unbearable conditions for it, including an expensive percentage, predatory fees for accompanying the card.
What other ways are there
In addition to the above methods, the following methods can be distinguished, how to get a loan with bad credit history without information:
- you can take advantage of a loan that is offered in shopping centers and stores without requesting credit history data from the BCI and requiring a minimum of documents;
- you can resort to the help of credit unions, but at the same time you need to be completely confident in the ability to repay the debt on time and avoid delays;
- you can use the services of a private lender, but in this case it is important to find a competent lawyer who will help you to arrange relations with him correctly;
- If you are an advanced Internet user, then the method of processing borrowed funds through online exchanges is suitable for you.
How to improve your credit history
The process of correcting a negative credit history is quite long. Do not think that you can pay someone and this someone will clean up your flaws. So, let’s take a closer look at the whole process.
Firstly, you need to pay off the loan, due to which this negative mark appeared in the credit history. After you close this loan, ask the bank for a certificate stating that it has no complaints against you regarding it. You may need it when drawing up a new loan agreement. It will be proof that you now have no problems with loans, and you are ready to repay the next loan.
You already realized that there is no more problematic case than the one posed by the question "How to get a loan with bad credit history?". And if you still got it, then take it seriously and pay it in a timely manner. Having shown the bank that you are a bona fide borrower, you will get more chances that in the future you will receive a loan on more favorable terms.
