Small loans are depending on the bank loan up to one thousand, five thousand or even ten thousand euros. The large differences in amounts are possible because the term small loan is not regulated by law.
Negative credit rating worsens the ability to successfully apply for a microcredit, it does not necessarily exclude lending.
In addition, credit applicants often believe that they own a negative credit rating, although there is not a single negative entry in their credit rating file. The cause of this misunderstanding is predominantly the erroneous assumption that even minor financial offenses such as a return debit due to lack of account funds or a reminder would lead to a credit rating negative entry.
Despite negative credit rating – apply for loans
When assigning online loans to unknown business partners, every credit rating entry is often an exclusion criterion.
Direct banks mostly use a fully automated credit decision-making system and therefore can not take any special considerations into account. When applying for a loan in a bank branch, however, the bank administrator can evaluate the specific situation of the interlocutor.
If he forfeited a soft credit rating negative entry during a past period of unemployment and has now found a job again, the loan officer can agree to a small loan despite bad credit rating. In the case of existing customers, the principal bank often replaces the credit rating request by assessing the internal credit rating without informing the customer of this legal behavior. It requires the approval of the credit rating clause anyway for reporting the borrowing to the credit protection.
Since the internal credit rating data also reveal minor breaches of contract such as an excessively overdrawn current account, this form of credit check is much more accurate than a credit rating request. Who leads the checking account at the house bank properly, thus has good chances to get a small loan despite bad credit rating. Not a few people have a bad credit rating but have a credit card requested before forking the negative.
The use of the part payment function of a credit card is associated with above-average debit interest and makes sense only in exceptional cases. The need to take a small loan despite bad credit rating, is one of these cases, especially as the credit card company makes no renewed credit rating request when first using the credit function.
Borrowing with collateral
When borrowers name a guarantor, they usually receive a small loan despite bad credit rating, provided, however, that the guarantor not only has a good credit rating, but at the same time a sufficiently high income to take out a guarantee. If you have a life insurance policy or a private pension insurance, you can lend them and thus take up a micro-credit despite bad credit rating through your insurer.
The insurance company offers the saved contributions and the resulting subsequent payments sufficient security. However, the provision of a private pension insurance is not possible if it is funded under the pension.