It should not happen, but sometimes it does. The economic difficulties are incumbent, there are so many expenses, money is scarce and so you end up giving priority to other things, skipping paying some personal loan installments. And this is how your name ends up in credit bureaus’ registers, the database of bad payers. Anyone in this uncomfortable situation will have many difficulties in obtaining new loans, often banks categorically refuse to lend money to those who have not always been excellent payers. What to do then in these cases? Should we consider that everything is lost and that we can never get a personal loan for the rest of our life?
Nowadays, perhaps also because of the recent economic crisis, the number of rejected applications is growing visibly. This occurs because today, more than in the past, it is very easy to run into financial difficulties that prevent you from meeting all the deadlines of the individual loan repayments. At this point the bank, even for a single unpaid installment or bill, has the right to act against the debtor by signaling them to credit bureaus.
This list is public and any bank or credit institution can consult it freely before granting a personal loan. It thus becomes very difficult for a person registered in this register to be able to have the confidence of lenders and thus obtain further financing in the future.
Bad payers who are rejected also suffer important consequences. First of all, as already seen, there is the seizure of one’s assets and the notably reduced possibility of obtaining new financing in the future. Moreover, there is also damage to one’s image, also and above all on a professional level. The register of protests is public, anyone consulting it may choose not to undertake a working relationship with a person who has already shown unreliability in the past. By reducing working relationships, one could incur a further worsening of one’s economic condition.
Fortunately, the situation is not so tragic and some lenders have developed financial products aimed at these people who have not always been punctual in paying the loan installments previously obtained. Even those who have been protested in the past therefore have the possibility of receiving another loan, on the condition that it offers the bank sufficient guarantees so that it is sure that it can fully recover both the loaned capital and the sum of the interest accrued thanks to it. Furthermore the granting of a payday loan is facilitated with respect to other types of loans, the salary itself being an acceptable form of security, a status of rejected applicant or a bad payer.
A form of loan most frequently sought after by bad payers is represented by unsecured loan. The point is here is not in lenders not checking your credit history: they always do, it is a standard procedure. The point is that the risk to benefit ratio considered by lenders in case of bad payers is offset by elevated charges incurred in cash advances for borrowers with less-than-perfect credit history.
This type of personal loan has unique characteristics that differentiate it from all others. First, to obtain this type of loan, it is not necessary to provide the motivation for which you are requesting it. The reason why you need this liquidity does not have to be declared. Precisely for this reason, payday loans are also referred to as non-finalized loans. The time frame between the loan request and the obtaining of the loan is generally shorter than that required to obtain different kinds of loan.
We have seen how easy it is today, to end up in the register of bad payers and for this reason the banks and other institutions that provide credit have developed financial products aimed at this type of borrowers. However, it is always good to never put yourself in a position where you cannot repay a debt. If for a monthly payment paid with a slight delay the world certainly does not fall, the accumulation of debts puts those who requested the financing into objective difficulty and may no longer be able to manage this situation. One way of managing it is to receive a short-term loan to repay another outstanding debt with impending maturity by facing slightly higher charges as a bad payer, but avoiding more serious consequences.