If you have a regular income, you can easily get a loan. In addition, the Credit bureau information should be in order if the loan is to be applied for at a German bank. If this is not the case, it can be more or less difficult to obtain a suitable loan. This goes so far that a situation can seem hopeless.
However, a loan does not have to be impossible in hopeless cases. Here it is advisable to pay close attention and study the offers of various financial service providers and credit intermediaries. It would be very important to make sure that you do not come across dubious providers.
Normal installment loan
In order to receive a normal installment loan or a overdraft facility, a secure income is required. Most banks in Germany and abroad assume that the income is an income that results from employment. In some cases, private loans are also given to the self-employed. However, this is not very often the case, as many banks fear that the income of the self-employed can suddenly decrease, thereby jeopardizing loan repayment.
Foreign banks generally only grant their personal loans and car loans to employees, workers or civil servants and generally exclude other groups of people from lending. The only exception is for a guarantee or if there is a second applicant.
Negative Credit bureau entries are only a problem with a bank loan from a bank based in Germany, but not with foreign banks or private lenders. A loan in hopeless cases is when attempts to obtain a loan were unsuccessful several times, but a refusal always had to be given because the credit requirements were not met.
Lending from a bank is generally completely impossible if the loan applicant has taken the affidavit or if he is in a private or business insolvency procedure. It is also not advisable to take out a loan in hopeless cases because there is a risk that it cannot be repaid and that the financial situation of the person concerned will deteriorate further as a result.
If you want to take out a loan from a private person in hopeless cases, you are welcome to do so. In doing so, he can – if available – contact a lender from his own family or from his own circle of friends. Otherwise, there is the option of registering on a private loan brokerage portal and looking for a suitable private lender there.
A good contact person for a loan in hopeless cases can also be a private loan broker. However, extreme caution is required here if you are asked to checkout in advance or are forced to conclude expensive insurance contracts. These are signs that the credit broker in question is not reputable.
Here you should distance yourself and look for an alternative. Reputable and professionally competent credit brokers do not require money in advance and do not require you to conclude expensive and useless contracts. They also do not give you unrealistic hopes, but clearly show you the opportunities and risks of lending in your case.
In general, it can be said that there is always a good chance of a loan – from whoever – if another person either agrees to submit the application together with the borrower as a second applicant or to assume the guarantee. However, a person who can take on these tasks should have a good credit rating and in particular a solid, sufficiently high income.
Before you apply for a loan, you should clarify various questions.
This includes the question of how much money you need and the maximum monthly loan rate that you can raise for the loan in hopeless cases. Once this question has been answered, the interest on different loans has to be compared. With a loan in hopeless cases, you often have to expect that the interest will be higher than with another loan. This is due to the increased risk that there is no doubt in a hopeless loan. It is a fact that loan defaults are more common among people who do not have the best conditions for borrowing than people who are all right and have good credit ratings.
There is often an urgent need for financing. There are instant loans and lightning loans that can largely meet these needs. You can also apply for a loan with a normal processing time. It may take a few days for a credit decision to be made, otherwise you can expect a decision within a few minutes. Unless you apply for a car loan or another loan with a specific purpose, the money is at your disposal after the payment.
In hopeless cases, you have to repay the loan in monthly installments. This is similar to any other loan. If you fail to meet your payment obligations, you must also expect more or less far-reaching consequences. Therefore, talk to your lender if you are unable to pay a loan installment or cannot pay it in full. A solution can then surely be found together.
If you fail to meet your credit obligations, you may receive various reminders and then cancel later. A negative Credit bureau entry is often the result. Then you will no longer be able to take out a loan in the near future, which you should avoid urgently.