Most people are aware of the crucial role played by the protection community for general credit protection (private credit) in lending. If the scores score is negative, it will be difficult to get a loan. However, there is a quite viable alternative: the loan with guarantor despite negative private credit.
Loan with guarantor despite negative private credit: What exactly does that mean?
The negative private credit ensures that the bank has significant doubts about your ability to repay the loan you want. She may talk about a “too weak credit rating”. This does not mean anything else. Accordingly, you must eliminate the doubts about your ability to repay your loan – and this is what the guarantor will do. He jumps in when you are no longer able to pay your loan. Usually (but not compulsorily), the so-called guarantee case occurs when you are unable to fully service two of your credit installments. So the guarantor gives Bank a guarantee that they will receive their money in any case. Therefore, the bank is prepared to ignore your negative shuffa and still give you the credit.
Loan with guarantor despite negative private credit: who can vouch for you?
As shown above, the guarantor plays a very significant role if you need a loan despite negative private credit. Accordingly, it is very important that you know who can vouch for you. Basically, these are all natural and legal persons (ie companies, foundations, government agencies, etc.) who are willing to do so. Excluded is only your own company, if you should own one. Usually, you will usually find a guarantor in your circle of friends or in the family. After all, the emotional relationship you have with these individuals leads them to be willing to take the financial risk of a guarantee.
Basically, you do not just have to present a guarantor. You can also get more people involved in this way. Theoretically, the corresponding value is even unlimited upwards. It can also vouch for 50 people. The rule is not. In most cases, there are only one to three people who act as guarantors. The advantage of having multiple guarantors is that none of them have to be liable for the entire loan, but only for a part. If you have problems finding a suitable guarantor, this argument could help.
Theoretically, not all the loan needs to be covered by a guarantee. However, it is at the discretion of the bank to decide how percent must be covered to grant a guarantor loan despite negative private credit.
Possible alternatives to the loan with guarantors despite negative private credit
If you are not able to find suitable guarantors, you can alternatively go another way. Several borrowers can also persuade a bank to give you the loan you want. Spouses, parents or friends, for example, are eligible as additional borrowers.
Alternatively, you can also offer collateral – this is, for example, home ownership. You can also submit your vehicle registration document and vouch for your car.
If you only need a comparably small amount (up to four digits), you can also try your luck with credit intermediaries or abroad. Loans are also granted without taking into account the private credit score.