Consumers who do not have high incomes often have to turn every euro twice over. Quite often it happens that an invoice must be paid or an acquisition must be made. With the little income, however, can not be made large leaps and then there are often bottlenecks in the budget.
A loan can help to prevent the debt getting out of hand. Here, however, the problems are already starting for some consumers, because some of them are not always enough to cover the credit. In order not to risk a rejection of the bank, a bit of preliminary work should be done, that nonetheless a credit without creditworthiness is awarded.
Increase credit opportunities with collateral
The credit opportunities for a credit without credit rating can certainly be improved with certainty. The usual collateral include surety life insurance. In the case of a bank guarantee, the customer must know that the guarantor can only be used if he is solvent. For this the Schufa and the income are checked. The Schufa must not show any negative entries and the income must be high enough so that it can be seized if the payments fail.
Since a guarantee with a high load is included, not many agree. It would be like taking a loan yourself and if the borrower can not pay anymore, you have to be liable as a guarantor with his assets. So the customer can also choose his life insurance as collateral. This is accepted by banks only if the repurchase value is as high as the loan amount of the credit without credit rating. The repurchase value can be found out through his insurance documents, which are sent to you on a regular basis.
Which loan is awarded
Customers who have a very poor credit rating but can increase it with collateral will usually only receive a small loan. This credit without credit rating often starts at 500 euros and ends at 2,000 to 3,000 euros. Thus, no large purchases can be made, but important bills are paid. A trip or luxury goods should not be paid with it, because a loan always means that there are debts that have to be paid off. The repayment is made by monthly installments.
These rates are booked by a standing order at the beginning of the month from the account. For this reason, the repayment amount should be included in the budget planning since the account must be covered accordingly at the beginning of the month. In the event of insolvency, the bank may arrange for a seizure. Should there be any difficulties in repaying for a month, it is better to seek the bank in good time. These will find a solution together with the customer. For example, a deferral or a reduction of the installments can be arranged.