Most of the loan seekers apply for this at the house bank. However, if one is unable to prove that the loan is serviced on time due to unemployment or bad creditworthiness through no fault of one’s own, the loan request is rejected. But this is no reason to give up. The reasons why a bank refuses the loan and another bank grants it, and which alternatives are available, are shown below.
Basically, similar criteria are used for lending, whereby the value varies between the individual banks.
It is a matter of:
- the credit rating
- the monthly income
- the collateral
- the permanent residence
- the loan installments
When applying for a loan from the house bank or another bank, certain requirements must be met. What is important in every case is the age of majority, so that full legal capacity is given. Documents such as proof of income and legitimation are added.
Alternative – installment loan
First of all, you should know that the more often a binding loan request is made, the chances of getting a loan despite bank rejection decrease. This will be forwarded to Credit Bureau and noted. The other credit providers receive this information. As banks generally work very closely together, the application to another bank is usually also not approved. In order to find reputable providers online for a loan despite bank rejection, there are a few points to consider when choosing. There are a number of institutions on the Internet that issue a loan without Credit Bureau information. As already mentioned, the general conditions must be carefully observed. The costs incurred and the prices can be compared precisely.
In any case, it must be checked whether an installment loan is granted. This is very variable. This affects the amount of the loan and the repayment modalities. An installment loan or a small loan are options that banks check, even if their credit rating is not satisfactory. In principle, a small loan is an installment loan with a loan amount of up to $ 1,000. It is cheaper for approval if you can offer collateral. Guarantors are another option.
With an installment loan, the current interest is not the same for all applicants. The amount depends on their credit rating. Not only the Credit Bureau information but also the income and financial obligations are recorded in a risk profile. The banks now classify from very good to weak. The offers that the banks submit also depend on the current housing situation. The payment behavior of the past is consulted. Age, family situation and monthly expenses also play a role. A requested installment loan is offered based on the creditworthiness with the current interest.
A term of 12 months to 120 months is common for an installment loan. The borrowing rate and the annual percentage rate are added to the loan. The monthly installment is calculated from this amount and the term. Some banks do not charge a processing fee for an installment loan.
The non-binding calculation example with a loan amount of 6,000 USD + fixed interest + effective annual interest with a term of 12 months. The monthly repayments would be more than 500.00 USD. This example is of course unrealistic for resin 4 receivers. If the term is extended to 120 months for the same loan amount, the amount to be paid is approximately $ 75.00 per month. The total loan amount increases from the first example with around 6,300 USD to almost 9,000 USD. These amounts are based on online research and are non-binding.
A portal for loan seekers has opened up online. These are personal loans, which are
Hartz 4 recipients and people with poor creditworthiness. Loan seekers and lenders are brought together anonymously on this platform.
Personal loans are also tested, similar to other products. These results should be the basis for a decision. Because serious providers will not do without the credit check.
A loan despite bank rejection can be obtained relatively easily and quickly on the Internet. A loan despite bank refusal is promised on favorable terms. Unfortunately there are a lot of loan sharks that people still exploit in this situation. Therefore, extreme caution is advised when applying for a loan online despite bank refusal.
In summary, it can be said that it is not excluded to receive the loan despite the bank refusal. It is to be warned not to accept dubious offers. Loans from reputable banks are offered online with a short processing time, even without a credit check.