Banks only grant loans if they are creditworthy. This is often measured with the Credit bureau, which is checked every time a loan is granted. In the Credit bureau, for example, cell phone contracts, loan contracts, but also rental arrears and unpaid bills are entered. The bank will only grant a loan if there are no negative entries in the Credit bureau. Too many negative entries make the bank fear that the customer will not pay off the installments and rejects the application. But it doesn’t have to go that far.
How do you get a cash loan with negative Credit bureau?
If you do not know whether you have negative entries in the Credit bureau, you can obtain self-disclosure. This enables the loan applicant to see in advance whether he has negative entries. If this is the case, the Credit bureau will no longer be available as security. Therefore, other collateral must be found.
The guarantors with which banks agree are guarantors. A surety can be the spouse, a friend or a family member. It is only important that the guarantor is solvent, which means that he must have a regular income. This income must be available in an amount that can be seized in an emergency.
If the borrower can no longer repay the installments, the guarantor must step in and pay the installments. If he does not pay the installments for whatever reason, the money will be attached. An amount up to the subsistence level is attached. So that this does not happen, the guarantor should be well chosen.
Lending despite bad Credit bureau
As already mentioned, there is a possibility to get a cash loan with negative Credit bureau.
The applicant must be of legal age and must have evidence of a regular income. This evidence is provided through pay slips. The longer the applicant is employed by a company, the more positive it is when lending.
The bank’s valuation depends on how high the loan amount will be. In the case of a bad Credit bureau, the sum will often be between 300 USD and 5,000 USD. A larger sum is often not possible.
The loan applicant can also use other options to obtain a cash loan with a negative Credit bureau. Firstly, there is Swiss credit. The banks in Switzerland do not know Credit bureau, so there will be no examination at all here.
You can also search for private lenders on the Internet. You should take a close look here, because the fact that the borrower has a bad Credit bureau can be paid as security as a high interest rate.
If all else fails and no cash credit with negative Credit bureau can be taken out, only the way to family or friends helps. They are often willing to borrow at least a small amount for a certain period of time. To ensure that the saying “Friendship ends with money” does not come true, care should be taken to ensure that the agreed installment payments are strictly adhered to. Such a loan, from family or friends, should only be made if a loan agreement is drawn up.