The granting of a loan depends on various factors. In Germany, you only get a loan after a comprehensive examination. Among other things, a credit information is obtained and the creditworthiness of the applicant is checked. Those who have a bad credit rating and have a credit entry are in most cases considered to be creditworthy in Germany and no longer receive credit from a house bank, since the risk to the banks is too high that the applicant can not repay the loan. A credit despite poor creditworthiness is still possible.
Credit despite bad credit
In the very first step, it is advisable to obtain comprehensive information from a German bank. These can clarify whether they would receive a loan from them and if so on what terms. If you are deemed to be unworthy of credit, it is possible to include a second person in the loan application. So to include a second applicant in the application. If this person has a regular income or high collateral, the chances are good that the loan will then be approved. Another possibility is to propose a creditor to the bank. A creditor may be a relative, spouse, friend or acquaintance. The creditor assures the bank that he pays the installment of the loan to the bank if the claimant is no longer able to do so. In this way, the bank has the certainty that it will get its money even if the applicant is insolvent.
The creditor should be aware, however, that in the worst case, he will have to pay in full for the applicant’s credit.
If you want a loan despite poor credit rating, you can also find out about foreign banks and their offers on the Internet.
These grant two loans: loans with a request for information from credit and loans for which no information from credit is obtained beforehand. In this way you can also get a loan despite bad credit rating. Foreign banks have recognized people as target groups who already have debts, have a bad credit rating, own a credit entry or similar. In Germany, these target groups are usually regarded as being unworthy of credit or at least as a risk group. Abroad, these people still receive a loan. And the big advantage is that they do not receive a new credit entry through the loan abroad. However, the loans usually have much higher interest rates than a German house bank. They vary between 5% and 16%. The term is between 24 months and 120 months. The advantage in a long term is that you can repay the loan despite bad credit, as the rates are accordingly low.
Compare the different offers
Overall, it is important to compare the different offerings of the banks comprehensively, especially when it comes to a credit despite bad credit rating. The offers can be very well compared via the Internet. There you can get individual and non-binding offers for free. That way you have a basis for comparison. It is important to take into account agency fees, processing fees, or fees for insurance and read the fine print carefully. Then, the credit is in spite of bad credit nothing more in the way.