A loan in difficult cases is requested thousands of times a day at the banks and savings banks. Often the first request is rejected because the collateral for a lending is missing. But whoever improves and agrees to the demands of the banks, can still get the desired credit.
When is the initial situation difficult?
A loan in difficult cases is usually sought when the borrowing is associated with a high risk of default. Mostly, credit seekers are in financial distress, have accumulated debts that need to be settled quickly or can not provide a fixed income.
Sometimes existing income is simply too low, the credit protection is too weak, or the loan amount and the term are not in line with the requirements that the prospective customer can meet. A difficult case therefore always occurs when the desire and the reality do not match.
Many consumers usually seek a loan for a reason. They do not take this up for fun, but connect it with a very specific project. Often planned by long hand, so that the disappointment of a loan rejection is very large.
With this disappointment then goes along with the fear that the loan can not be implemented. Quickly then loan offers are considered, which bring very bad conditions. A path that really does not have to be gone.
Hedging a loan in difficult cases
In order to realize a loan in difficult cases, it is important that the loan is properly secured. Otherwise, the inclusion of a regular bank will not succeed. A good hedge reduces the default risk and allows banks to make a good loan offer.
The quickest way to hedge is when a solvent second borrower is called in. A second person, who can compensate for all the weaknesses that the actual borrower has, boosts the borrowing immensely. Because the banks have then met all the conditions for a loan.
On top of that, it would be possible to hedge the loan in difficult cases with additional collateral such as a residual debt insurance or term life insurance. However, both insurances only apply in an emergency if the policyholder can prove that he has a permanent job when the insurance is taken out.
There are also other requirements that must be met. Otherwise, the insurance costs only money and can not fulfill its purpose in an emergency. It is also recommended to have additional security in mind. For example, material securities. Depending on loan amount and desire of the bank.
Credit in difficult cases – recording
The inclusion of a loan in difficult cases should be done in peace and always begin with a comparison. Our comparison calculator at the bottom of the report provides a quick comparison that not only shows good credit offers.
The comparison also identifies the individual conditions and conditions that can be found around the respective loan offer. Furthermore, the services of the bank are shown, so that prospective creditors can estimate before the application, which structure brings the respective loan offer.
This must be respected
A loan in difficult cases is always a risk. Because the difficult cases always indicate that borrowing is not actually advised. Such a loan should therefore only be tackled if it is really necessary and can not be postponed.
It should also be ensured that the second borrower, who may be called in, knows exactly what he is getting into. The second borrower is fully liable for the loan. He should only agree to this task if he really wants to and can bear the burden involved. A good contact with the main borrower should be self-evident.