There are many consumers in whom the credit application for installment loans or for a consumer credit does not go as planned and is rejected by the bank – often quite unexpectedly. Under certain circumstances, this can lead to great desperation, if one has already counted firmly on the money. However, few missing prerequisites often lead to the loan application not being approved. However, you do not have to throw in the towel right away, because luckily there are other ways to successfully apply for a consumer credit. We’ll show you how to act properly after a credit rejection and what to look for.
Credit rejected – but why?
The most common reason why loan applications are rejected is still the credit score information that must be given to each applicant. If there is a negative credit score entry, this is usually a KO criterion for a loan and the bank rejects the request as a hedge for itself – because it fears that there could be problems with the eradication. If you do not know what your own information looks like, then you should ask the credit score yourself. Once a year, every German citizen can request their own information free of charge. From time to time it even happens that credit score entries are not correct and can still be corrected – this fact should also be checked, because this can already be of great help in successfully obtaining a loan on the next attempt.
If the negative credit score entry has been entered correctly, it is, however, to inquire with the credit provider, whereby this has come about – if you do not already know. It also makes sense to find out as soon as possible if there are still opportunities to take out a loan. If, for example, it is a less serious credit score entry, it is often helpful to discuss the matter again with the bank or to provide a guarantor or other security. In addition to the credit quality of credit bureaus such as the credit score, the use of the current account also plays a role in the decision-making for bank lending. If the current account is permanently overdrawn or the credit line is permanently used , this can also lead to a rejection of the loan.
Credit rejected: Can you apply for a loan even without a credit scoreprüfung?
Whoever wants to take out a loan, has a regular income and is thus permanently employed, usually has very good chances of getting a loan. But what happens if you have a negative credit score entry and the credit scoring on the part of the credit provider is negative? It is extremely difficult to apply for a loan from a normal German bank. One option would be to contact a credit intermediary looking for a provider that does not do a credit score query. However, schafafreie loans are usually only obtained if you can prove a fixed income from a permanent job. It should also be remembered that, in many cases, non-scholarly loans are significantly more expensive than normal bank loans and also require a minimum amount. This is on average 3,000 euros – the exact conditions are different for each provider.
Another reason why a loan application can be rejected, for example, is too low an income. If you are employed full-time, but earns little, then it may well be that the bank rejects the request. Currently, leasable income for single people is around € 1,000 – and a large proportion of lending institutions do not lend to people who can not be proven to have attachable income. Thus, people who receive Hartz IV, are inactive or even receive sick pay, usually no credit, because even these benefits (wage replacement payments) are added to the attachable income.
How to respond correctly after a rejected loan application
If one knows why the loan request failed, one should first try to work on one’s own payment power. If, for example, the credit has been rejected because of a negative credit score statement, it is sometimes possible to have it removed – but not always. After a successful early cancellation, which you have to apply for, you can then start a new loan request. If there are no further problems with the creditworthiness, the loan is unlikely to get in the way.
If a credit score entry is justified and agreements have already been made to settle outstanding payments, then in many cases it makes sense to contact the bank and try to negotiate. Many banks grant the credit, but if you can provide evidence that the matter is resolved soon and the credit rating would therefore be neutral. Even a residual debt insurance is often offered by banks here.
If you finally decide for a non-credit score credit, it is essential to check whether it is a reputable provider. Loans without credit score require in most cases other tests, because of course, banks here also want to have certain collateral that the applicant can meet his payment obligations. The alternative would be to include a guarantor in the loan. It is important that this also has a good credit rating, in the best case eats very solvent and there are no negative entries in his credit score information. The bank will then secure the loan on the guarantor and thus protects against a default. If you do not comply with your payment obligations, the guarantor will be charged – be aware of that.
What happens if you can not find a guarantor for your loan?
Get credit cancellation, what else can I do?
Fortunately, the opportunities to take out a loan today are relatively diverse. So you will find a lot of platforms, especially on the Internet, where you can look for a guarantor for his loan. These are so-called credit marketplaces. Their principle is relatively simple: If you want to take a loan as a consumer, you can online on the website to submit a request as an ad. Now, investors who want to invest their money well can respond to it and help them get the loan. This means: You make your capital available and earn interest. Such platforms are not only suitable for people whose loan application has been rejected, but also for private individuals who want to borrow at the lowest possible interest rate. But here, too, a credit check is required – which one should be aware. Here, too, is a credit score information, which is the same as a bank.
Mortgage loans – are they an alternative to a loan rejection?
A mortgage loan can certainly be worth considering if you have been rejected in a normal application for a normal consumer credit. With the help of a mortgage loan can be redeemed valuables for cash. It goes without saying that the loan amount depends on the value of the respective object. This means: If you need a large sum, you must also provide a deposit with the appropriate value. One advantage: as a borrower, you do not incur any debts with this solution – because with this security, the bank receives a pledge that is sufficient for it.
However, experts recommend not using this solution for the long term, but only if it is an exception or a loan that you really need urgently and that will be paid off within a few months or after short maturities. Because: In most cases, it is with a mortgage loan so that deposited objects are returned to their real owner after three months – and in this time the loan must be paid off. A further plus with a pledge credit is that no credit score information takes place and thus the credit check for consumers does not apply. So there is no other solution, this “loophole” as the last option could certainly still use.
Conclusion: Do not give up immediately if the bank rejects the loan application
If the bank has not approved a loan application, then this is very annoying for you. But on the other hand, one should also keep in mind: it is very responsible that banks check so strictly whether there is a credit score entry or if there are other credit problems. For this there is the so-called banking trade association, whose codex prescribes to work with the care and exactness with the granting of credits. Among other things, the purpose of these guidelines is to protect consumers from recklessly accepting a loan whose subsequent obligations to pay off the installments may not be able to meet them.
If you look at your own financial situation realistically, it is often not so wrong, if you have to give up a loan. Certainly there are situations where you are in urgent need of cash – but just when it comes to purchases such as a new car, a new TV or something similar, it is often better to ask yourself if you have this one May not want to wait a little longer if the current financial situation demands it. Nevertheless, one can keep in mind: Even if a loan is not approved by the bank, there are still several options that could be taken in exceptional cases.