Most important criterion for granting a loan
For most banks, a good credit rating is the most important criterion for granting a loan. The credit rating says a lot about how high the borrower’s income is and what his payment history was in the past. Both are important aspects that significantly influence the granting of a loan. Now there are more and more consumers who have problems with their creditworthiness.
Firstly, because the payment behavior was not good in the past and therefore negative entries have accumulated in the Credit bureau. On the other hand, also because the income is too low or the actually high income is reduced by garnishment. Whatever the reasons may be, it is very difficult to realize a loan despite negative Credit bureau and garnishment.
The bank demands collateral
You will not be able to find a bank that grants a loan without collateral. As a rule, it is the income that serves as the main security. However, if this is diminished by a garnishment of wages, alternative security must be looked for. If you are looking for a loan despite negative Credit bureau and garnishment, you should look for a co-applicant.
It could provide the necessary collateral for the bank. To do this, he must be able to demonstrate good creditworthiness and be able to demonstrate further material collateral. The actual borrower should also check whether he has material things that the bank can use as security. Only in this way is there a small chance of getting a loan from one of the big banks despite negative Credit bureau and garnishment.
Advance without having performed any service
You can also look around the Internet for offers from smaller banks and financiers. Here you should be particularly vigilant. There are many providers in this area who work with dubious means. For example, some intermediaries charge a fee in advance without having performed any service.
Or the prospective customer has to buy advisory documents that have no meaning, nor bring them closer to a loan. It is also dubious if you have to take out insurance in advance for lending or if the broker can only be reached via an expensive hotline.
If you suspect this behind an offer from the Internet, then you should stay away from it and look for other alternatives. Maybe you can borrow the money you need within the family. Or you wait with the loan until the garnishment and the negative Credit bureau have been cleared. Then you can take out an installment loan with every bank or savings bank in the normal way.