So you need a loan. When you refused in one bank, you went to another bank, but you also suffered a failure. What is the problem? You also seem to have a revenue certificate and the requested amount is not out of the cloud. People with bad credit history often face such problems. What does it mean? It’s very simple: at some point in your life you refused to pay a loan or regularly withhold contributions.
Bad credit history
For banks, client credit history is one of the most important criteria. And if you have proven yourself as an irresponsible debtor, it will be difficult to remedy a negative reputation. After all, the bank is not absolutely interested in working with people who are prone to breaking the terms of the contract. In fact, your living conditions are virtually meaningless to them. It’s more important how reliable you are as a debtor.
How does a bad credit history arise? There are several violations that can contribute to this:
- Full non-refund of credit (this is the most serious breach and you should not expect a positive loan decision in the future).
- Multiple delinquency of payments for 5 to 35 days or more (average severity of the infringement).
- Simple payment delay in less than 5 days.
As for the last point, this violation is not taken into account. After all, it is quite common for the borrower to make a deposit by the deadline for payment, and simply do not have time to get to the bank at the right time. Little attention is paid to such details. If delays of less than 5 days are regular, it is not possible to name the ideal credit history. However, most banks do not see serious grounds for refusal.
Where you can take out a loan with a bad credit history?
If payments are due for five days to 35, credit history is already bad. However, if the debt has been paid in one way or another, the bank may subsequently approve your application for a new loan.
Customers who have never paid credit funds at all, banks do not even take into account – they are immediately rejected.
This could be a bad credit history that has always paid the bank’s debt to the lender. Obstacles to fundraising can be litigation, recovery of maintenance or even a kind of debt to a neighbor.
How to fix the situation?
Many people are interested in where you can borrow bad credit history. Of course you will find such opportunities. However, you can hardly work with official structures. And you have to pay for it. Therefore, it is better to think about how to correct (or rather improve) your credit history.
- Visit a bank branch and present the evidence that you have become responsible when you changed your attitude to the loan. For example, you can submit statements that confirm the current payment of different accounts (service bills, etc.) in recent years. The big advantage is the availability of documents confirming high solvency and regular income.
- Explain the reasons for a non-debt loan (if the reasons are not dependent on you and have been associated with illness, reduced work, non-payment of wages, and so on. N.).
- Deposit accounts opened with this bank (from 1 year) can be another proof of credibility.
Credit cash with a bad credit history can be used in special services, but usually it is necessary to pay heavily interest for such pleasure.