Every person can make a negative entry in the Credit Bureau because just in the stress of everyday life it can happen that a bill is overlooked. Often people then receive reminders and are currently on vacation. Then the mail from the debt collection agency doesn’t take long and what appears harmless at the beginning brings unpleasant consequences in the end. The creditworthiness of the individual is also at risk.
However, not only the entry in the Credit Bureau is necessary to refuse the loan, but payment difficulties are also reported by the debt collection company to business reports. The economic information department then passes this debtor data on to banks and companies, and anyone in this debtor register will not have an easy time getting a loan despite debt collection.
Get a loan despite debt collection
Nobody has to be disheartened if a loan request at the house bank is rejected. There are good alternatives for the hoped-for goal because the range of Credit Bureau-free loans grows from year to year. More and more private lenders are lending their money cheaply, especially at the time of two percent interest on a fixed deposit. Personal loans are often characterized by low-interest rates, less bureaucracy, and more flexibility. At the same time, some market pressure is exerted on the banks so that they rethink their business policies. Foreign banks also like to grant smaller loans free of Credit Bureau, because German borrowers are still considered reliable borrowers.
What should you watch out for with a loan despite collection?
In spite of debt collection, a loan is no longer a major hurdle these days. However, there are some tips for a loan in spite of debt collection that must be heeded so that there are no unpleasant surprises later. Prepayment should never be made for fees and commissions because a reputable lender usually offsets them against the loan amount. Every contract should read exactly the fine print and a good donor offers interim repayments without compensation for the prepayment.
This saves financing costs and provides the necessary flexibility. The loan should also be secured and suitable insurance is not always offered. Residual debt insurance is particularly recommended for a personal loan. This minimizes financial risk, for example from an accident, illness or unemployment. At the same time, every debtor retains the financial scope for action despite a debt collection.