Whenever a cash injection is needed, the house bank is on loan with a loan. But what if the loan request is denied? The following article shows useful alternatives.
Credit rejection: possible reasons
If the loan request is rejected, this usually has a reasonable reason. This must be determined, because only then is it possible to find an alternative. The most common reason: A negative credit bureau entry. Even a popped rate can lead to a note in the file and often it does not even that. Often, it’s just faulty or obsolete entries that have led to the negative rating. Therefore: regularly report to the credit bureau and correct errors. This can increase the chance of a loan, although there may be other reasons for refusal. For example, if the loan size is high, the institution will ask for a guarantor. If this is not available, there is usually no loan. Not least, too little or unregulated income can lead to rejection. If this is the case, we recommend looking at the following alternatives.
Alternatives to the loan
No credit from the house bank? No reason to give up the loan, because nowadays there are some alternatives to the classic loan. Of course, it makes the most sense to borrow the money needed by a person from the circle of acquaintances. The contract can be set up itself, which has the advantage that loan amount and interest can be chosen freely. The latter often completely disappear with a personal loan or are lower in comparison to the credit at the house bank.
Another alternative: the earmarked loan. This type of loan specifies exactly what the loan amount will be used for. The requirements are usually less strict, as they are cheaper. If you need larger sums of money, Swiss Credit may be the right choice. The loan, which is handled by credit institutions from Switzerland, is accompanied by lower interest rates, but relatively high processing fees are due.
Conclusion: Alternative loans can be practical
There are many reasons why a loan request can be negative and just as many alternatives to the classic installment loan. But are they really useful? In many cases yes, but that depends on the situation. If you need a microloan, personal loans may be cheaper, and larger purchases can best be financed with a special loan. Ultimately, therefore, many factors determine the type of credit, which is why it is necessary to obtain and compare various offers. Once done, nothing stands in the way of an alternative loan.