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A loan despite debts

If you need some money and need a loan, it’s harder to get it once you’re in debt and you even have a negative private credit entry. Such bad credit does not make life any easier and can also prove to be a disadvantage if you want to take out a new loan.

If you are in such a situation, in some cases it is not possible to offer an apartment, to conclude a mobile phone contract or even to finance a car. To settle the debts, a loan is often the only way out. However, getting such a loan is not always easy.

What should be considered for a loan despite debts?

In Germany it is very difficult and complicated to get a loan approved if you already have debts. In some cases, however, it is possible for the home bank to give a long-term customer a loan even though he has debt. But these cases are clearly an exception.

In times of crisis, however, it is unlikely that a bank will lend a loan to a customer who has debts. That is why it is sometimes advisable to look around the internet for a suitable loan, because there is a greater chance to get a loan despite debts. Nevertheless one should pay attention on the Internet that one does not get cheats.

What are the ways out?

It is not impossible with debt or a negative private credit entry to get a loan approved. Some service providers, such as car leasers, get before no credit check by the private credit. In addition, there are also banks and banks, which do not seek information from the private credit before lending.

With such institutions and providers alone is the own earnings account on which should be no seizure. In addition, one can always score despite collateral such as a car or a real estate.

Credit comparison also possible with debts

Credit comparison also possible with debts

In addition, the Internet also offers numerous ways to obtain a loan despite debts. Such loans are not only easy to find but also straightforward and easy to apply for. A disadvantage, however, is that a loan on the Internet are associated with higher interest rates than a loan at the house bank, because the risk for providers on the Internet is higher. However, you should always inform yourself about all the possibilities and get the best advice in order to find the best option for yourself.

One should never shy away from using private creditfreie services, if one can thereby improve their own situation and thus comes out of the debt sump. Before you finally decide, you should compare everything and weigh the offers.

Debt consumers who have not obtained assistance from a debt counseling service often find that they can manage to escape the debt trap on their own. Very often they then try to get credit for debtors to settle old debts with this loan. This simple calculation does not always work. On the one hand, banks rarely award credit on debt, and on the other hand, it’s the wrong way if you want to stuff a hole and tear another hole for it.

Urgently needed money?

Anyone who has debts or liabilities has a bad credit rating from the perspective of the banks. Anyone who still has negative entries in the private credit, for whom it is almost impossible to get a loan from the major German banks. Certain living conditions, however, require a financial boost despite debt, be it for a much-needed new car, the wedding or rescheduling of existing loans.

Important to know:
Not every outstanding claim also includes a negative entry from private credit at the same time.Online demands, such as online orders, are normally only reported to private credit if they have been requested twice before and no payment is made. A private credit entry will also be announced in advance. In the following text it has to be distinguished whether only debts exist or debts with negative private credit.

Debts and liabilities

Often debts and liabilities are used synonymously, which is not correct. The subtle difference can even be decisive in terms of lending. But where is the difference between debt and liabilities?

As soon as money is borrowed or something is purchased by installment, you owe money to the institution or other person. Usually, a repayment agreement is made in writing or orally (when, in what period, in what installments). If the agreement can be honored, ie the repayment is made as planned, there is a liability.

If the repayment is not made or not as agreed (late, incomplete installments, etc.), either a new agreement can be made so that it remains a liability or it comes to a so-called debt relationship. So you do not talk about debts until you meet the repayment obligations.

Getting a loan on existing debt is usually not a problem. But even if agreed installments are always paid on time and there is enough income, liabilities have a negative impact on creditworthiness. Each monthly liability reduces the disposable income and thus worsens the credit rating.

The more current liabilities, or the higher the sum of liabilities, the higher the risk for banks that default will occur. The degree of liabilities to debts is narrow, the banks also know that.

Impact of debt on the creditworthiness

First of all, it does not matter why there are debts. Irrespective of whether you have an irregular car or home loan, rent or other unpaid bills, as soon as you have open payment obligations to third parties, there are debts. Also, if you are not responsible for the debt (ex-spouse, etc.), the credit rating in the eyes of the bank is considered bad. The worse the credit rating, the higher the risk that the borrower will take over financially and can no longer repay the loan.

The credit institutions therefore secure themselves by charging the borrower relatively high interest rates for the desired loan compared to other customers with good credit ratings. The worse the credit rating, the higher the accrued interest.

A loan despite debts is therefore basically possible, but you have to expect in comparison with worse interest rates. Different with debts with a negative private credit. A negative private credit signals banks with poor payment habits or solvency.

They see lending as a very high risk, usually unsustainable, and therefore reject loan applications. This is not a malicious or arbitrary decision. House banks and savings banks in Germany are required to audit private credit and are required to not lend under these circumstances.

But customers are no longer dependent on the banks around the corner. For example, on the Internet, there are many alternatives to getting credit despite debt.

5 tips and alternatives to lending

If credit requests are rejected because of debts from savings banks and house banks, there are some ways to get yet the desired cash injection:

Online loans

Many online banks that are not required to check their credit standing as they work with foreign banks offer loans over the Internet. With debts and a bad private credit, it makes sense to choose a loan without a private credit exam. Even with online loans, there are differences in conditions. It is therefore recommended not to close the first credit, but to compare in advance. However, certain securities also need online banks, otherwise the risk of default is too high for them. Collateral for a loan can be:

  • regular income
  • no wage garnishment
  • open-ended employment
  • no ongoing personal bankruptcy
  • additional collateral such as real estate, land or a new car

P2P loans

Peer to Peer Loans are in their original form loans from private individuals to individuals. Meanwhile, commercial loan seekers (startups) also get loans from private investors on the P2P platforms, which are mostly available online. These loans are a win-win situation. The private investors lend money to the borrower and receive this amount back with interest. Borrowers get money in this way, although their credit rating led to a rejection of the banks. However, interest rates rise with risk.

This means that a negative private credit and bad credit rating poses an investment risk for private investors. In order to make this risk attractive or sustainable, loans to so-called risk groups (negative private credit, low income etc.) are only granted with high interest rates. If the borrower is willing to accept this, the chances of a loan are good, since risk borrowers are the most likely to benefit from interest rates on loan repayment.

credit Providers

There are both online credit intermediaries and those that can be visited personally. Credit intermediaries make contact with various banks in their network for the loan seeker and negotiate the best conditions for them. This is possible even without private credit information, since these loans are usually provided by foreign banks, or by smaller German banks that are not private credit partners or consciously refrain from it. Again, it depends on a sufficiently high income and it will be the risk correspondingly high interest rates.

Not every credit broker is reputable! Reputable online credit intermediaries are usually recognized by positive reviews and reviews on the Internet. Here it makes sense to trust familiar names. If fees are already charged to a credit intermediary for credit counseling or if the advice is not comprehensive and transparent in terms of loan amount, debit interest, effective interest rates and terms, this indicates a dubious credit intermediary.


Anyone who wants to take out a loan despite their debts also has the option of using a guarantor as collateral. Then a loan at the house bank is possible. The guarantor stands by his income and assets for the borrower, which means that if he does not pay, the bank asks him for the missing money. The guarantor must therefore have enough financial security to be accepted by the banks.

Foreign banks

In addition to online banks, creditors can also contact foreign banks directly to bypass a private credit exam. Foreign banks lend to German citizens up to a certain minimum amount. A prerequisite here is a relatively high income.

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