As soon as you need a small (or larger) cash injection, your own bank is often the first port of call. But what happens if the loan is rejected? In this article you will learn the reasons. And what alternatives are available if the loan is rejected.
These are the reasons why a loan is rejected!
At the latest, when the credit application is rejected, ask yourself why. One aspect you need to know in advance:
- Each credit institution must give you the exact reasons why the loan was rejected!
With statements such as: "our internal criteria do not allow us to grant a loan.", you should not be "fobbed off". Of course, the lenders know exactly why loans are granted or, in your case, not granted. For these reasons, in many cases, a loan is not granted:
- Negative schufa entry exists.
- Income is not sufficient (because in most cases they ask for rent and other expenses).
- Employment contract is limited in time.
- It fails narrowly because there is no guarantor or second borrower on record with a steady income.
Not infrequently, a loan is rejected, because partly outdated schufa entries reduce your "scoring. Unfortunately, banks have no other way to check your potential payment record. As already mentioned "LEIDER". In individual cases, usually arise quite different situations.
Are there alternatives if the loan was rejected?
If schufa entries exist, which have long been settled or are time-barred, then take care of it! Report to the schufa. Submit proof of payment. Have the negative entries deleted. And as soon as possible. The schufa is probably the most common reason why a loan was rejected.
In all other cases, you have to get a guarantor. Your parents, relatives, friends or any other second borrower. No chance? Then you have to get the money somewhere else:
- Personal loans
- Try an "earmarked loan"
- Credit from abroad (typical example: swiss credit)
Regarding the topic "private loan", exist 2 variants:
- Credit from friends or relatives (in this case you save the interest). But there are literally "friendships at stake here". So use this option only if the house bank has refused you the loan, but can actually pay it off!
- Various platforms in which private lenders invest and grant loan amounts. Auxmoney is such an example. Investors invest capital. Here high interest rates result, which however you also carry. In any case, the chances are higher here!
Rescheduling is often the sensible way!
As soon as the debts grow over your head, then it makes perfect sense to combine several loans together. It is not uncommon for lenders to even advocate this action. Because you bind yourself in the long term to a bank. Of course, it depends on how many liabilities already exist. In addition, your creditworthiness is always checked.
- Debt restructuring combines several loans
- You may even save interest by paying off existing loans early
- Credit for debt rescheduling is often rejected less
You are pretty broke? Then the credit is rejected because your expenses exceed the income!
In this case, you should seek debt counseling. Under certain circumstances a private insolvency (consumer insolvency) is also worthwhile. Counseling services for debtors are for example:
In any case, the fact that a loan has been refused is a first sign of financial difficulties. Do not try to take out a loan under any circumstances (especially not with dubious credit brokers). In case of need you should contact the above mentioned counseling centers.