Loan Without Credit
October 27, 2019
Many of us are distressed by financial difficulties. However, few people in financial difficulties understand how mundane money concerns are to many, and many may even feel ashamed of their situation.
As a result, some are unable or unwilling to seek help in time, which will deepen the debt cycle and make it almost impossible to repay their debts. However, it should be borne in mind that even people who work with loans are just people, and most of them are more than willing to help people in financial difficulties.
Lend to the Creditless
Losing credit information is a hard place for many. Credit information refers to any personal information that may affect a person’s ability to pay. In other words, this is how well the applicant has managed his / her financial affairs in the past. Although the loss of credit information does not directly tell a person’s ability to manage their money today, as each of us makes mistakes, losing it is a long process. This, in turn, already indicates something of a deeper financial hardship that, for one reason or another, could not be addressed in time.
Applying for a loan without credit information is challenging, but not impossible. Cases are always investigated on an individual basis, and for example, very old and defaulted payments are not necessarily a barrier to obtaining a loan. However, applying for a loan without credit history is a risk and you should consider it very carefully. If your credit history is gone, applying for an additional loan may not be very sensible, as it would be best to focus on getting your finances in order first!
Therefore, without credit history, you should always negotiate each loan individually, and preferably over the phone or face-to-face with your bank or other financial institution. It is also important that good solvency can be demonstrated, for example, through regular income. It is also possible to obtain a loan through a guarantor through an Aurora loan, even if the applicant himself has lost his credit history. However, the guarantor is required to meet certain requirements. We will explain these requirements in more detail at a later stage.
Lend to a defaulter
There are many types of defaults, and their quality depends entirely on how they have entered the credit record. Not all defaults are serious, and the shortest ones arise from malfunctioning of a particular payment, for example when a small loan is prevented from being repaid. These entries shall be removed from the register within two years.
Slightly more serious defaults are then those reported by the district court, the creditor and the lien, which remain in the register almost always for at least three years. However, the severity of payment defaults can be influenced by your own actions and the speed with which you can get things back in order. However, a payment default entry can never be completely erased before it automatically expires.
Lending lenders to defaulted applicants are rare. In this case, the loan terms are also stricter than normal and the interest rates higher. Although the default payment is not a guarantee that the person in question will default on a new loan, the creditor must in some way ensure that the contract will not be lost. Although the situation may be distressing for the applicant, it is worth remembering that the lender must also ensure that the loan will be repaid – with interest.
Loan to everyone
Although almost anyone can apply for a loan, it cannot be granted to anyone. Loss of credit information and defaults are the primary reason for rejecting a loan application, but the age of the applicant also has an impact. Therefore, many lenders have set a minimum age limit of 20-23 years.
Behind the age limit is simply the certainty that the applicant will be able to repay the loan, as many 18-19 year olds do not yet have a permanent job or other regular source of money. In addition to clear credit information, minimum age and regular income, the applicant is required to have a permanent address in Finland and personal bank IDs.