By issuing a “large and expensive” loan, many borrowers do not even assume that they may expect the fate of non-payers. However, time passes, and at a certain stage they are faced with financial problems. The credit history is completely damaged, and debts begin to grow like a snowball. In this case, refinancing a loan with a bad credit history is ideal. What kind of service is this? And is it realistic to get it for desperate defaulters?
Does a negative review in the credit history affect the decision of the bank?
It’s not a big secret to anyone that credit institutions mistrust their new customers or unreliable citizens. In particular, we are talking about borrowers who, for certain reasons, had a bad credit history. That it can be the last stone on the scales, which will lead to an advantage not in favor of the debtor. But nevertheless, borrowers with a damaged reputation have a chance to refinance with bad credit history. How is this possible?
How do loans refinance?
First of all, it is worth saying that refinancing is a special banking service that enables borrowers to change the initial credit conditions in their favor. Of course, this does not mean that your debt will be written off. However, thanks to this service, non-payers have a great opportunity to obtain a revision of the loan agreement. What is meant?
In simple words, the borrower comes to a credit institution and asks to refinance his loan. Of course, for this he must have very good reasons and evidence. For example, as a result of an accident or natural disaster, he lost his only home. He was fired from work, he was seriously injured at work, was fired, etc.
In such situations, the bank refinances a loan with a bad credit history. Those. it increases the loan term and thereby reduces the amount of the monthly payment so that it matches the current financial capabilities of the client.
Refinancing is also carried out by third-party banks other than the financial institution of the lender. These programs are aimed at attracting and, in simple terms, "luring" customers from competitors. Such loans include both “mixed loans” (a set of several consumer loans, cash loans, credit cards), and large loans (car loans and mortgages). What do banks pay attention to when they issue a refinancing loan with a bad credit history and in which of them you can get this service?
Which banks have refinancing programs?
Refinancing programs operate in many Russian banks. They are in organizations such as:
- Sberbank of Russia (housing loans and consumer loans for refinancing);
- VTB24 (refinancing of cash loans, credit cards, car loans and commodity loans);
- Rossselkhozbank (consumer loans);
- Alfa-Bank (mortgage) and others.
"Tell me where you took the loan, and I will tell you who you are."
The first thing the bank will pay attention to is a credit institution where the debtor took a loan. Indeed, not only borrowers have a reputation, but also financial institutions. And it’s a sin to hide, a shadow of unreliability has long fallen on some banks. In addition, the cause of a damaged credit history of a borrower may be a trivial mistake of a bank manager who accidentally confused the name, etc.
To prove this fact is realistic if the borrower is 100% sure of his innocence. To do this, before applying for a refinancing loan with a bad credit history, you must contact the CBKI or BKI at the place (if you know what your CI refers to). And then, knowing the creditor who ruined your story, you can prove your innocence in court. Later, with a judicial verdict and confirmation of your reputation, you can safely contact the bank.
The same applies to frauds with loans, for example, if you became a victim of scammers who applied for a loan in your name.
Amount, terms and causes of insolvency
Before telling you how to refinance a loan with a bad credit history, the bank will definitely try to find out the reasons for your defaults. Especially representatives of a financial organization will be interested in the following points:
- non-refundable amount;
- the frequency of non-payments (how regular they were);
- what is the term of your debt (day, month, two, year);
- for how long was payment delayed (month, two, etc.).
As a rule, a small amount of debt (and one-time non-payments) is not fatal, therefore, such borrowers can easily count on refinancing with a bad credit history. But what should you do if you are nevertheless blacklisted by malicious defaulters and refused to refinance?
Options for solving the problem with “expensive” loans
If you were denied several banks at once, citing your unreliability, do not sprinkle ashes on your head. There are tons of other alternatives. For example, you can always turn not to large banks, but to small ones. The former, as a rule, do not lack clients, therefore they may be too biased towards defaulters. Small credit organizations (for example, Tempbank) fight for each client and are therefore more loyal to non-payers.
In addition, if you can’t refinance a loan with a bad credit history with banks, you can always use the services of non-banking organizations. These may be MFIs. They are also loyal to customers, but their representatives usually do not give out large amounts to the first comers.
At the initial appeal, you can get about 4,000-10,000 rubles. If the loan is repaid on time, the loan amount will be increased. The maximum that you can count on in an MFI is 1-2 million rubles. Unlike banks, microfinance organizations issue loans for a short period, and the percentage for using such a loan is much higher.
If you decide at all costs to apply for refinancing at the bank, then you can provide collateral property as a guarantee of your reliability. Or you can turn to the services of guarantors.
In short, if necessary, a solution to the problem can be found. It would be a desire.