Who would give loans to the indebted?
December 25, 2018
When problems arise in our lives, we usually look for solutions on the internet. We are convinced that it is here that we find the answer to all questions that bother us. Perhaps this is true, but will advice on indebtedness loans prove useful?
Who will give financial support to a person with debts? Let’s see!
Loans for indebted? Certainly not a bank
Most of us realize that being indebted, we certainly will not get permission to give us financial help from the bank. The reason is simple, lack of creditworthiness. The credit application procedure assumes a thorough verification of the potential client in terms of financial liquidity and the history of its liabilities.
The first stage is a quantitative analysis, which is to check whether a given consumer, after paying the current liabilities, is able to allocate a specific amount to pay off the new one. This will be done by information on the amount of earnings, monthly expenses and the amount of active indebtedness – for example, other financial products contracted.
An important criterion will also be the employment basis, if we work on the basis of an employment contract for an indefinite period, we are in the best possible situation.
The problem may appear during the second stage, which is qualitative analysis. The applicant’s traits have an impact on its result, such as age, marital status, number of dependents, level of education, occupation, job seniority or position. If, until now, our chances of getting a loan remain large, everything can change the verification of credit history.
At this point, the bank will take a closer look at our current debts and whether we have timely paid off earlier liabilities. Information on this subject is made available to financial institutions by numerous registers, among which we can find: BIK, BIG InfoMonitor or Bankowy Rejestr. If not a bank, who will give loans to the indebted?
Will non-bank companies help us?
By entering into the search engine the phrase of a loan for indebted, there will be not only articles on this subject among the results, but also companies informing about the availability of such a product. In addition, it is not uncommon in television and internet commercials that we may find that a given lender provides financial support to people with debts.
However, usually the abovementioned assurances are not true. Most non-bank companies check their potential clients in databases and this is unavoidable. On the websites of most lenders, we also find a record that the basis for the loan is a positive credit rating.
Loans for indebted people
If every financial institution checks its clients in databases, where do the assurances about the possibility of borrowing from debt come from? Comparing the conditions for providing support in the bank and loan companies, there are many differences.
Undoubtedly, the lenders introduced less stringent criteria, thanks to which people whose credit applications were rejected have a chance for non-bank financial assistance.
However, each institution is guided by specific rules that are aimed at limiting the borrower’s risk of late repayment. In the case of loan companies, each service provider has the right to introduce an individual scoring, ie a method of assessing the credibility of the requesting person.
Therefore, institutions appear informing that the result of verification in debtors’ databases is not a decisive factor in a credit decision.
As we have already mentioned, loan companies also assess our creditworthiness, but they are guided by different criteria than banks. In what situations can entries at BIK be accepted? It all depends primarily on the amount of debt and the institution against which we are overdue with payments.
If a given person does not settle his or her obligations for a long time, he or she will not be accepted by non-bank institutions. Most of them declare themselves guided by the principles of responsible lending. This means that they will not provide financial support to the client without the ability to repay the receivables on time.
When is a loan without BIK possible?
However, the entry in the debtors’ database is not synonymous with the lack of creditworthiness. Economic Information Bureau is one of the systems that collects information on payments related to financial products, as well as utility bills, telecommunications services and alimony. That is why it is not difficult to find him.
It is enough that due to the temporary crisis in the home budget, we will not pay installments or bills on time. In such situations, it is worth trying to submit a loan application after reading the applicable terms.
The period for storing negative entries varies depending on the registry to which we have been added. Economic Information Bureau orders removal of such information within 14 days from the date of payment of arrears.
However, the Credit Information Bureau will clear our bad credit history only after 5 years from the date of settlement of the liabilities. If we have paid off your arrears, but there is still negative information on our name, there is also a chance to receive an online loan.
In addition, few people remember that the lack of credit history may be equally problematic. Therefore, remember that 90% of information in the BIK register are positive entries.
Without them, getting a loan will be difficult. Fortunately, the low scoring in the bank does not close the road to receiving financial support in loan companies.
Is a private loan a good solution?
One of the solutions that we can find, by looking at the answers to the question, who will give financial support to the indebted, is a private loan. Among the many advantages mentioned on websites, we forget about the risks associated with this type of obligations. It happens that they are identified with products offered by non-bank companies. However, it should be remembered that regardless of any assurances, differences can be found at the beginning.
Private loans are provided by natural persons. In this case, the investor’s security is usually a promissory note. This carries a certain risk of losing property if we do not make sure that the document is properly prepared. In addition, all legal regulations to which such obligations are subject are contained in the Civil Code.
Nevertheless, the interest rate and the consequence of delay in repayment are determined individually by the lender.
In turn, non-bank loans and their operation are regulated by the anti-usury law, in which we can find detailed information on the costs of the obligation. All necessary data is also available on the lenders’ websites.
Pursuant to the Act, interest for delay may be equal to a maximum of twice the statutory interest rate, i.e. currently 14%. On the other hand, the total cost of the liability should not exceed 25% of the loan amount and 30% of this sum on an annual basis.
If you want to take out a loan from PLN 2,000 to 10,000 with no unnecessary risk, use the Cryobank offer. With us from the beginning you know what you can expect costs. Check if you meet the conditions for clients and submit an application!