If the credit history is irretrievably damaged, but at some point in life an amount of money is urgently required, certain financial organizations will come to the rescue, issuing funds to borrowers with a negative experience of loan repayment.
If the credit history is bad, this does not mean that it is impossible to take out a loan. There are several ways how to actually get borrowed capital, despite a negative credit history.
First of all, you need to monitor banks for the issuance of a loan, and not waste time on financial institutions that are deliberately ready to refuse. It is not worth sending an application to a credit institution at random, hoping for a positive result, since this will most likely be followed by a refusal. Before submitting an application, you can find out about your personal current credit rating on special sites. If this is not possible, then in this case it remains to collect information about the banks.
Banks issuing urgent cash loans
These banks include those that issue express loans without income certificates and guarantees. The percentage in these credit institutions is high, due to this they allow themselves to take risks, issuing loans to sometimes not very reliable borrowers. Several applications to such credit organizations will provide a loan in one of them.
Collateral for a loan
The collateral property of a potential borrower encourages banks to “turn a blind eye” to his bad credit history and, accordingly, issue borrowed funds without delay. A special and favorite object of collateral for banks is the borrower's real estate. Also, not an old and not a cheap car will contribute to the issuance of a loan. It should be noted here that the percentage of the collateral loan will be with a more favorable rate than a regular consumer loan.
Microloans
In this case, the loan is issued not by the bank, but by microfinance organizations. The name of the loan suggests that the borrowed funds will be small, and therefore it makes sense to collect the required amount in several microfinance organizations. It should be noted that applications in such cases receive 100% positive permission, but the loan percentage itself is high due to the huge risk of issuing funds to unreliable payers of this financial institution.
Credit card
A quick loan can be obtained by placing an application for a credit card. Banks are eager to issue such a cash loan, since the issuance of a plastic card brings additional income to a financial institution. All of the above ways to get a loan from a financial institution give a positive result when placing applications. Since these organizations take on frequent financial risks, the interest rates of their loan products are quite high. Therefore, before deciding to take out a loan, you should think carefully about the possible personal risks.
