Do you need extra cash and apply for a bank loan? Although the current offer of banks is huge, it often turns out that applications submitted by clients are rejected. However, this is not necessarily related to low earnings or debt.
Banks take into account many factors when considering loan applications. They check future customers very carefully, because they want the liabilities to be repaid on time. Nobody wants to lend money to someone who is insolvent and will have problems with paying the loan installments on time. Interestingly, even people with high earnings cannot be sure that they will receive a loan. It all depends on how many obligations they already have to pay.
Too many loans reduce the chance of another one
The bank may refuse to grant a loan if the future borrower already has too many obligations. If someone already repays a mortgage, cash, and at the same time has several different installments for repayment equipment, then despite high earnings his creditworthiness is already low. In this situation, another loan may be very risky. No wonder that the bank will rather refuseanother loan. In this situation, the only solution to get a bank loan is to wait until the remaining liabilities are paid off and the customer will have a clean account when it comes to loans and credits. Another reason why a bank refuses to grant a loan is a negative credit history in the Credit Information Bureau, which contains information not only about all currently or previously repaid liabilities, but also about whether they were repaid on time and did not have many days or weeks of delay. If the story is bad, the client will not get credit even if he has high earnings. For the bank, it is information that the future borrower is fairly light-weighted about paying his debts.
Loans for those in debt in non-bank companies
People with overdue debts and their liabilities are already at the bailiff enforcement stage must forget about a bank loan. Having a bailiff to pay, you probably shouldn’t count on a bank loan. Then a good solution might be to look around the offer of non-bank loans, which are much easier to receive, because you do not have to comply with so many formalities. Loans with bailiffs are possible at some loan companies. However, you have to be aware of the fact that these will be quite expensive loan products. Loans for indebted people have a slightly higher interest rate than ordinary payday loans or installment loans. In this way, the loan company compensates for the risk it takes. People who have a bailiff can also look for loans against, for example, a house or a car. However, one should take into account that in the absence of timely repayment of such loans, you can lose property or movable property. Therefore, every loan decision should always be made wisely.