A mortgage loan or a private loan, which is also often referred to as one of the most common loans. This is a unsecured loan which means that you have to use the money for something special that can stand as collateral for the loan. As it is a unsecured loan, there is a greater risk for the lender when it comes to lending money, which we will come back to.
Lenders only allow their customers to borrow
When it comes to the size of a bank loan, you usually talk about USD 10,000 – 350,000. Some lenders only allow their customers to borrow up to about USD 25,000. Other lenders that include the big banks often start to lend from USD 20,000 up to USD 350,000. The maturity of the slightly smaller interbank loans is often a few years, for the larger ones often a maximum of 12 years.
Risks from the lender’s perspective
Most of it is about assessing the risks for the credit institutions and this is where the problem comes in for you who have one or more payment notes. Private loans in themselves have a fairly large risk factor for the lenders, as what I said was the issue of a unsecured loan. This means that the credit tests they perform should return with a strong response. If there are payment remarks, this is in the eyes of the lenders a sign of poor repayment on your part. They reason that a person who has previously failed to pay a debt also risks doing so again.
Then this can undoubtedly be completely wrong and your finances nowadays without problems are strong enough. Unfortunately, many lenders do not take this into account at all, but refuse applications automatically if there are complaints.
Can you borrow despite payment remarks?
There are a few different ways for you to still get borrowed money, although it is in no way certain that you will receive this even if you now have a good personal finances in your own eyes. Maybe our tips below can help you.
There are some lenders who have chosen to focus on people with payment notes or other things that in the eyes of the classic banks are a bad sign. Therefore, you can often borrow money here even if you do not have a high credit rating. The only risk is that you will have to pay a significantly higher interest rate for the loan. There is also no guarantee that you will be able to borrow money without a credit check being performed. The only difference is that the payment note is included as part of the total grade.
Another option for those who are looking for bank loans but have payment notes is to have a guarantor for the loan. This is a person who then enters and sets up as collateral for the loan. This person should then not have any payment notes himself and have a good finances otherwise. It is important to be very careful before choosing to hire a guarantor. This is usually a relative or friend and you really do not want this person to repay your debts.
Talk to a bank official
Although the big banks normally say no to applications if there are objections, there may actually be an opportunity to borrow money from them. However, it will then be required that you go down to a bank office and talk to an official there.
In order to have any chance of borrowing money, it is necessary that you have a good financial position so that the bank does not have to be uncertain whether they will receive the money back or not. You should then also make a good impression which means proper clothing and that you speak for your cause in a good way. Although there is still no guarantee at all that you will be able to borrow money even if you fulfill this.