In order to obtain a loan, the bank will examine the applicant’s credit rating very carefully. Several factors will be considered in this review. After all, banks need a guarantee that the borrower will meet their payment obligations. On the one hand, the banks check how the customer’s past compliance with payment obligations was. All the necessary information is contained in the Credit bureau information.
The other check, which is also a little more extensive, includes the factors of whether the borrower can pay the loan installments. This is how income is checked. Not only is the amount important, but it is compared with the expenses that the borrower has. Only if there is a difference here that can be used to easily pay the installments, will this part of the credit check also be completed and enable a loan.
It is important that all the facts of the credit check have to speak for the customer at the banks in Germany. No matter how small a problem in the credit check, it will quickly be the case that the loan can only be paid out at extra cost or not at all.
The problem with online loans and poor creditworthiness
It clearly shows that an online loan with a poor credit rating is difficult to obtain from a bank. The reason for this is that any existing problems cannot be discussed with the employee and other measures can be initiated. The banks’ rejection rarely includes a “why”, so that the person in need of credit has no choice but to accept the rejection. As a rule, the online banks all work according to the same pattern:
- Credit request,
- Preliminary check of the request,
- Cancellation or sending of the contract documents
Anyone who receives a rejection will not be able to explain anything else with their salary statements. There is a problem, for example, if a loan seeker has a temporary employment contract. Under this condition, the banks reject a credit request very quickly or the loan term is set according to the time limit. This quickly shows that the monthly installments are very expensive, which can rarely be mastered. With a statement by an employee of the bank, the fixed-term employment relationship, which is actually commonplace today, could be explained and, if necessary, a transfer agreement could already be shown.
The possibilities to get an online loan with a bad credit rating
Those who know the problem in their own creditworthiness can act. Banks need to be offered more security in order to meet their credit needs. If you have a negative entry in the Credit bureau, you have to search for a Credit bureau-free loan. Those with a low income have to increase their income with a second borrower or a guarantor.