Negative factors affecting the quality of credit history

Entering into the loan and regularly paying the appointed payments, the borrower creates a positive image, which greatly simplifies the subsequent receipt of borrowed amounts from other banks. The situation becomes the opposite, when due to certain reasons the borrower ceases to make payments, and there is a debt. In such cases in the history of the recipient of the loan shall be recorded on the breach of contractual terms, and the borrower is no longer so easy to get a loan with bad credit history.

The reasons may be "dark spots" in the credit history are:

- repeated violation of the terms of payment without explanation;

- poor impression of a Bank employee about potential borrowers, namely: caught in a lie, doubts about the authenticity of the documents submitted, status, and appearance, confusion over personal data and information about yourself;

- the erroneous actions of the Bank (late payment);

- the actions of fraudsters who fraudulently passport of the borrower to issue the credit.

The last two reasons the borrower is not guilty, therefore when you contact the Bank and credit bureaus they are easy to fix. Otherwise, to restore the reputation of and afterwards without any problems to obtain funding from the banks rather difficult.

5 main ways to get a loan with bad credit history

There are 5 basic ways that can help you get a loan with bad credit history.

1. Loans in the banks and financial companies. The advantage of this method is the loan in short terms, without granting of inquiries on earnings and study the credit history of the borrower. But with high chances of obtaining the required amount, the deficiency is considered assessed high interest rates and, accordingly, a substantial overpayment.

2. A credit card is a very effective way to get a loan with bad credit history in small size. The interest in this case is higher than when making a conventional loan, but if money is needed urgently, your card is relevant and timely.

3. Loans with property as collateral that the Bank is a guarantee of payment of the loan. The loans offered by many banks, not taking into account credit history, so a chance to borrow a decent amount is quite high.

4. To register and to get a loan with bad credit history with a secure guarantor. In this case, the interest the Bank offers are quite reasonable, and the amount depends on the level of income of the guarantor. Just have to find someone who will agree to be a guarantor and, in the case of financial problems of the borrower would assume the liabilities.

5. The address to credit brokers is a variant, which is used in cases when the previous methods to get a loan with bad credit history are not efficient. Brokerage companies charge a decent fee for their services, and in some cases may require an advance payment to obtain cash from the Bank. Broker does not guarantee the granting of credit by the Bank, and in case of refusal, the paid advance will not return. If the Bank still will give a positive decision, the Commission due a broker, the borrower, the hand will receive the same amount, and will need to pay for a much larger one.

To avoid the question of how to get a loan with bad credit history, you need to realistically assess their financial capabilities and to eliminate the appearance of debt. If circumstances are such that payment is imminent, you should contact the Bank and ask not to leave negative feedback, and to provide credit vacation, postponing the scheduled payment and is not charged fines.