Consumers can sometimes find themselves very difficult when they receive a rejection of a credit request. This is an exaggeration because the lending guidelines of the individual banks differ considerably and are seldom readable publicly. After the first loan refusal, consumers should not classify themselves as a very difficult loan case, but instead, after analyzing possible reasons, make another application to another financial institution.
If the difficult case arises from the Credit bureau information
Often, an applied for loan is a loan in very difficult cases, because Credit bureau has negative entries. Unlike most consumers, however, a single soft negative does not necessarily block borrowing. Branch banks, in particular, are willing to grant a loan despite a soft Credit bureau negative feature, in response to personal loan demand.
The rejection of the online application is mainly based on the fact that the simplified processing of loan applications on the Internet does not allow special cases to be dealt with. With a tough Credit bureau negative characteristic, the Swiss loan is the suitable loan in very difficult cases. Up to a maximum amount of 3500 USD, this is awarded for individual federal banks up to 5000 USD, without a Credit bureau request and without a Credit bureau entry. In any case, Credit bureau may not provide the Swiss banks involved with any information, since they are not member companies of the German credit protection system.
Difficult cases due to insufficient income
A borrower’s income must be sufficient for their livelihood and for servicing loan liabilities. Many banks’ calculation methods cause them to see some requests as loans in very difficult cases, even though the applicant has a sufficiently high income. The modern working world contributes to this, which makes freelance work a common occurrence alongside the main job.
Most banks do not count the share of earnings earned as a freelance even with regular cash receipts as supposedly unsecured income components in the household account. Remedy in this case is already the choice of a bank that actually evaluates all regularly earned income as such. Regardless of the amount of disposable income, the pawnbroker grants a loan in very difficult cases, provided the applicant can deposit a sufficiently valuable pledge.
Websites for private loan brokering also enable borrowing in very difficult cases, especially since low loan amounts and long loan terms are widespread there. At the same time, many registered lenders make decisions based on social criteria, so that people with weak credit opportunities are most likely to receive a personal loan from banks. Unemployed and top-up workers are most likely to get a loan from the job center in very difficult cases. The case manager grants interest-free loans for urgently needed purchases and agrees to set off the loan amount in small installments against future benefits.