In economically uncertain times, banks shy away from risk more than ever. A loan in difficult cases is therefore rejected even more often than it was already the case. There can …
In economically uncertain times, banks shy away from risk more than ever. A loan in difficult cases is therefore rejected even more often than it was already the case. There can be different reasons. For a bank, creditworthiness is the most important criterion when it comes to lending. In addition to a regular, attachable income, there should be no negative entries at Credit Bureau. But even those who earn enough may find it difficult to obtain a loan: if the debtor is already burdened with further ongoing loans or if his monthly costs are too high, the bank could reject the application.
In difficult cases, credit can be obtained privately
But a loan in difficult cases is still feasible. As the market becomes increasingly important for customers with poor credit ratings, the offers from private credit brokers are also becoming more common. The idea is quite simple: private borrowers and private lenders come together on a kind of online marketplace. The advantage of such a loan is that a private loan is not tied to fixed criteria. Such a lender can decide for himself whether lending makes sense.
If he is convinced of the debtor’s will to repay the loan, he can approve the capital. For another reason, banks are not particularly interested in such a loan in difficult cases: Since the loan amounts for customers with a low credit rating are usually relatively low and do not exceed $ 3,000, the expected profits are also small.
Advantage of a private loan
The effort remains the same for the bank. The situation is reversed for the private lender: he receives good interest on his capital, up to 15% is possible. The laws of the market also apply to private loans: the greater the risk, the higher the interest rate. Those with a fixed income should have this confirmed by the credit intermediary. This increases his creditworthiness – and interest rates can drop to below 8%. Another advantage of a private loan is that Credit Bureau remains unaffected. The chances for further payment obligations do not deteriorate.