It is very difficult and unlikely to grant a loan to a person without credit history. Every lender wants to check the solvency of their customer before granting a loan, and a credit default entry is never an advantage.
However, the task is not always completely impossible. Although a loan is often denied to a debtor, there is still room for improvement. See the most common ways to go for a loan seeker who wants a loan.
For example, if you apply for a loan through a bank’s online form, you may automatically get a reel when your default payment is detected. And the bank will notice it sooner or later.
However, if you go to a bank office on the spot to talk to an officer and are prepared to share your situation and demonstrate your ability to pay, your chances may increase slightly. Creating and presenting a carefully considered payment plan can also be to your advantage.
Lower loan amount
The bigger the loan amount, the bigger the risks are in the air. Therefore, a smaller loan amount may be easier to arrange.
Guarantee, security or co-applicant
If you can secure or secure your loan, your chances of getting a loan will improve.
However, for example, securing a house is risky for you – for example, a co-applicant could be a better option. So if you are applying for a loan with your spouse (for example, who has a clean credit history and a stable income), depending on the amount, the loan may even be possible.
Financial institutions that lend to the creditless
Yes, there are. In this case, however, you will be required, for example, regular annual revenues, and no new payment default entries have been generated in the past year.
Loan Brokerage Services
Through the loan brokerage service, your loan application is sent to several banks and financial institutions, which may result in a loan.
Some loan companies use the Instantor service to check the solvency of their customers. With the help of a bank or financial institution can get information, for example. borrower’s income and expenses and current loans.
This is basically not a credit check, but beware that some lenders will check it separately.
Removing a payment default entry
The surest way to get a loan is to pay off your old debts, avoid creating new defaults, and wait for the defaults to disappear. The payment default entry will usually appear in the registers for 2 to 4 years.
The subscription will be deleted after two years if you pay off your debt in full and you do not receive any new subscription during that two year period. Each new payment default entry, in turn, extends the subscription to four years.
Think carefully before applying for a loan without credit history! Lenders regard your situation as a risk, so even if a loan is settled, the interest rate may be astronomical.
So take a close look at your financial situation and think about options for a new loan. At its worst, a new loan will only drive you deeper into the loan cycle.