It is often claimed that it is possible to take out a loan without any problems. Some customers have difficulties as soon as their Credit Bureau is queried. Credit Bureau helps the bank to sort out solvent and non-solvent customers.
Borrowing with negative Credit Bureau possible
It is possible, even if the banks do not like it, to take out a loan if you have a negative Credit Bureau. The picture changes quickly when the customer enters the bank and announces that he wants to take out a loan with a guarantor despite a negative Credit Bureau. Then the banks are happy to start talking. In this case, the word guarantor is highly regarded. A guarantor has different functions and serves as security.
What is a surety
A guarantor is mentioned repeatedly in the credit world, and only a few know what a guarantor is. A surety is used primarily when the customer does not have a good credit rating. This is not provided by the bank. the applicant must find a person who can act as a guarantor. If the loan is not covered, this is used to continue repaying the loan. A guarantor is primarily used when the actual borrower can no longer pay off the loan.
Then the guarantor has to step in for him. This means that he is liable for the borrower with his private assets. This is of course a risk that has been taken. Nobody wants to take over someone else’s debts. Therefore, guarantors often come from their own family, the father, an aunt or the brother. These people trust the borrower to look after their finances properly and can often be used as guarantors. In this way, a loan can be taken out with guarantors despite a negative Credit Bureau.
What are the requirements?
In order to receive the loan with a guarantor despite a negative Credit Bureau, the borrower and the guarantor must meet the requirements. It is not enough if one of the two can meet the conditions and the other cannot. Both must have attachable income. Both of them must be able to provide proof of this with their pay slips. The last three to six months are usually required.
In both cases, this income must not come from marginal employment. In addition, the guarantor of the guarantor is checked. This must not have any negative entries. If, for example, the guarantor repays a loan himself, this is noted in the Credit Bureau. The person is then often rejected as a guarantor. The applicant and the guarantor must be over the age of 18 so that the guarantor can apply for the loan despite a negative Credit Bureau.
Credit is no longer repaid – consequences
If the case arises that the borrower can no longer pay from the loan with guarantors despite a negative Credit Bureau, the guarantor must take over. If he refuses to pay the installments, a garnishment will be given. Then, except for the minimum rate, the bank’s wages are written up until the loan has been paid off. If both sides have difficulty paying the rate for a month, it is better to speak to the bank. Often you can have the installments suspended for a month or two.