Anyone who has already had to make acquaintance with a debt collection company is usually in great financial difficulties. Taking a loan despite collection is therefore usually not easy. Because often the debts have already left their mark on the Credit Bureau.
When will a debt collection company be turned on?
For a creditor to commission a debt collection company, something must have happened in advance. Because commissioning costs money. And if the debtor does not pay, the creditor gets stuck at the extra cost. So before a debt collection company reports to you, the creditor will have done so many times. In the form of payment reminders and reminders. Depending on the creditor, this process can vary in length.
Big companies like dealers are usually faster. Smaller companies or private individuals are more likely to hesitate to add a debt collection company.
How does this affect the Credit Bureau?
Mostly, the debt collection company deposits a negative entry in the Credit Bureau of the debtor. In many cases, however, this has already been done by the creditor. Thus, the debt is official and reflects on the credit rating. A negative Credit Bureau entry reduces the credit rating immensely.
In general, so much so that this is no longer sufficient for the regular admission of a loan. Additional collateral must therefore be able to be named so that borrowing is possible.
How is a loan possible despite collection?
It is very difficult to take out a loan despite debt collection. If a debt collection company is on your heels, it always means you have debts. And to the extent that has allowed you in advance no repayment. Getting a loan in such a situation is therefore a particular challenge. The loan is only possible if you show modesty in your wishes. Focus on a small loan amount.
In spite of all that, do not forget to settle your debt with the debt collection company. The loan should therefore not only be used for new purchases.
Requirements for a loan despite collection
In order to be able to accept such a loan on reasonably good terms, you absolutely need a solvent guarantor. Only with a good guarantee will you be able to convince reputable banks of their intention. Dubious credit intermediaries, on the other hand, will provide you with a debt collection loan without a guarantor. But beware
Most of the time it’s empty promises that can cost you a lot of money in the end. Dubious mediators work with many tricks. Therefore, focus on keeping your own credit rating as high as possible. Use a guarantor, control your income and expenses and adapt your loan request to your personal requirements.
If you expect no miracles and concentrate on the search, this can also be positive.
5 tips for recording
With a loan despite collection you must look very well, that you do not fall on dubious offers. Please note the following 5 tips when borrowing:
- Do not embark on offers that promise you a loan despite debt collection
- Compare several offers with each other
- Do not use offers with prepayment
- Add a guarantor to borrow
- In spite of debt collection, only take the loan if it is really necessary
If you take these 5 tips into consideration, you may be able to find a reasonably good loan offer. However, do not expect any miracles and examine every offer thoroughly.
This is the only way to avoid further financial difficulties.