Credit despite debt collection – how does it work?


Getting a loan despite debt collection is not that easy under normal circumstances. It is not only since Basel II that the general credit guidelines that every bank has to adhere to have become stricter. The conditions for granting a loan are diverse. First, you have to be able to prove a regular income. Plus a positive Credit Bureau information. Credit Bureau stores data about people who do not act in accordance with the contract. This includes account cancellations, late installments on older loans. In short: the general payment behavior.

How do you get a loan despite debt collection?

How do you get a loan despite debt collection?

The conditions for granting the loan can be varied and vary from bank to bank. If you urgently need a loan and don’t have much money, your hands are often tied under normal circumstances. How good is it if you still have the opportunity to conclude a loan contract with some providers. The most important prerequisite is and remains regular income. In addition, it may be advisable to order a guarantor for loan security. The guarantor is liable for the loan default in the event of an irregular installment payment.

How do you find the best loan provider despite debt collection?

How do you find the best loan provider despite debt collection?

At first glance, it doesn’t seem that easy to choose the best from the abundance of potential providers. But it’s not that difficult. The most clever comparison is on the Internet. In most cases, a clear list of results is shown with just a little information about the loan amount and term.

Often you can even request documents online or even conclude the loan agreement online. You are not exposed to any risk here, because your identity is verified with the help of your ID card using the PostIdent procedure.

Are there any differences between traditional branch banks and modern direct banks?

Are there any differences between traditional branch banks and modern direct banks?

The difference between these two bank models often lies in the conditions for granting a loan. For example, direct banks often do not charge any processing fees, while branch banks often still charge them. However, those who place great value on personal advice on site will prefer the branch bank in most cases. However, this does not necessarily have to be your own house bank – you can look around for another bank in your personal environment.

The advantage of direct banks is usually the better credit conditions. If a telephone or written consultation is sufficient then you will be well advised here. The cost advantage lies in the fact that the direct banks pass on their cost savings to the customers, because they do not have to maintain expensive branches and save not only rent but also personnel. Ultimately, everyone has to decide for themselves where they want to take out their loan – but the Internet is a very big help here.

Taking out a loan despite debt collection is not impossible. However, one should definitely choose a reputable provider who not only provides good advice, but also does not impose unnecessary fees on the borrower. The conventional credit institutions are put off by the fact that one or more collection agencies are involved, which can be seen from the Credit Bureau. This gives the impression that the loan seeker is having payment difficulties anyway.