Every lender has to keep a healthy balance when doing business: taking too little risk means only perfect debtors but possibly too little business volume. Too much credit with bad credit rating can mean a lot of effort to collect and collect overdue installments and burden the cost base.
Each company therefore places different - and different requirements - on the creditworthiness of the borrowers. Therefore, below you can find some pointers on how a credit with a bad credit rating works and how you can legally improve the relevant influencing factors for the credit with a bad credit rating.
Loans with poor credit ratings are an interesting business model
Most successful business models not only specialize in the minimum percentage of really rich people, but seek contact with the largest possible number of customers. Many banks are therefore also committed to advising customers who are not as wealthy and do not leave the customer out in the rain even in the event of uncontrollable events such as sudden unemployment. Loans with poor credit ratings are also considered interesting because many customers later achieve higher incomes and then have a significantly higher credit rating and also invest money.
If your credit rating is not that good, you will not be standing in front of closed doors everywhere as a loan seeker. Depending on the Credit Bureau information, your existing assets and, of course, the loan amount applied for, there may be an offer for the loan with poor creditworthiness and a slightly higher interest rate. This interest rate for the credit with poor creditworthiness then covers the average expected overtime from the lender and also a risk premium.
Legally getting the loan easier
The bad credit loan is easier to obtain if you consider how it works and influence the decisive factors. In addition to Credit Bureau information, for example on canceled or unused loans, the previous payment behavior is also decisive for lending. For example, if you have many open mail order invoices or mobile phone bills, you will be listed as a good customer, for example, but the payment behavior is not optimal. So it may well be that the late payment of the bills is a negative feature. Always pay on time, then you'll stand out positively from many other customers.