If the bank rejects a loan application, there is no reason to give it up. There are several ways to get a loan:
Request to different banks
Just because a bank does not approve the loan application does not mean that every bank evaluates the request in the same way. If you have tried your luck with just one bank, it’s a good idea to look for alternatives.
Delete Private credit entries
Self-assessment is possible free of charge once a year at the Private credit. It happens more often that there are entries stored that are either unjustified or statute-barred. If this is the case, the person concerned can file an application for deletion of the entry and try his luck again.
An alternative may be a Private credit free loan from abroad. However, it is only recommended if the debt burden is not high. Consequently, it is especially recommended for contaminated sites and youthful sins, which today no longer play a major role. With a respectable credit without Private credit information sufficient creditworthiness is nevertheless a condition for the loan approval. A prerequisite is, in addition to a sufficiently high income, a permanent employment contract.
Improve financial situation
If a bank considers a client to be insufficiently creditworthy, it should look for the weaknesses in its financial management. If there are still several loans, he should replace them as quickly as possible. In addition, he should try to find savings potential in order to have more financial space. Also, selling valuable items that are no longer needed is an option that borrowers should consider. Another option is to take a side job.
It makes it possible to save (more) equity. In this way, the risk for the bank and the borrower decreases and term and interest rates are reduced.
This step carries a high level of risk to the borrower, but can have a significant impact on the success of a loan application. Those who can offer securities, life insurance, real estate, vehicles or other valuables as collateral often still receive a loan. However, in this case, it should be carefully examined whether the financial burden of the loan can actually be met. Otherwise, the loss of security threatens a much lower price than would be customary in the market. The financial disadvantage is then possibly very large.
A guarantee is a further security for the creditor. He has to stand up for the debt of the borrower and thus guarantees that the loan will be repaid in case of default. A guarantor, however, wants to be well considered by both sides as it may pose a significant financial risk to the guarantor.
Credit by private
Another way to reject a loan application is to take out a private loan from friends, relatives or acquaintances. As a rule, the conditions are even better than with a bank. However, both parties should not handle the situation recklessly. The conditions should be contractually fixed and a solution in case of default should be found in advance.
Another possibility is platforms on the Internet, which also provide credit from private investors. Again, it is imperative that the debtor is able to repay the loan and uses it for a reasonable investment. Those who do not fulfill these two points will not be successful even with private credit intermediaries.