Once having compromised yourself, it is difficult to interact with banks in the future. When there is a need to take loans with bad credit history, efforts will have to be made significantly more than with a positive borrowing experience.
Over the course of several years, all transactions with financial institutions are taken into account in a single national base - the credit history bureau, so if you were a debtor and allowed a delay in the loan to occur in one of the country's banks, all other organizations will be able to easily find out. However, getting money with a
bad credit history is still possible.
There are three main ways to get around a problem situation:
- Find a lender who does not care about your past at all and does not request a loan dossier;
- to find a creditor who is ready to turn a blind eye to your sins;
- convince a potential lender that this time you will not fail, you will not violate the terms of the loan agreement.
Indifferent lender
The easiest way to find an option when your credit history does not play a role. Loans with bad credit history are issued by numerous microfinance organizations, because they are not interested in your previous borrowing experience in other institutions. These lenders include Home Money or MigCredit, Nano-Finance or Monetka.
Of course, the cost of borrowed funds from such financiers indifferent to your past will be significantly higher than when contacting the bank, but at their own risk they justifiably request an additional fee. The rate on such affordable microloans can reach 1-2% per day.
Understanding creditor
There are loyal banking institutions that provide loans with bad credit history, which include Tinkoff, OTP, Otkritie, Home Credit, Renaissance Credit , and Russian Standard banks. All of them allow for delays in the past and minor problems with repayment of obligations. However, if you have committed a serious crime in the field of finance, then their doors will close before you. Interest rates on loans from these banks may exceed 30-50% per annum, but it is still more acceptable.
Prudent Lender
A loan with a bad credit history can be borrowed if the bank is provided with additional money back guarantees. When applying for a loan at any bank, you attach a voluminous package of documents to it
and certificates confirming your current solvency, and also offer security - collateral, surety, insurance or other ways to protect the bank from losing money.
It is preferable to reassure the bank by registering real estate as a pledge, then it will be possible to borrow a large amount for a long period and at a minimum interest of 15-20% per year, and the overpayment for such a loan will be minimal. Loan guarantees are less beneficial, but attracting a solvent relative or acquaintance will allow you to use borrowed funds at 20-25% per annum, even if you yourself do not inspire confidence in the bank. The main thing is the guarantor's infallibility.
Thus, the opportunity to take loans with bad credit history exists, and it is up to you how beneficial it will be to you. Choose the most convenient option and borrow the right amount.