In fact, issuing a loan with a bad credit history is not difficult. You just need to know several ways to help you get a loan. The first step is to understand that you should not contact state banks. Lenders give loans much more readily.
It is necessary to minimize the risks of the lender. To do this, you need to provide a guarantor. You can insist on this if the bank does not require it. This way you have a better chance of getting approved. This method is very simple, and most importantly, completely legal.
If you need a large amount, then this method can be a little flawed. However, the confidence of banks can only be restored gradually and slowly. You need to take small amounts of up to $5,000 and give them back on time. If you pay everything according to the schedule, then you will receive the next loan on more favorable terms.
You can get a loan with a bad credit history in almost any commercial bank. They are much more willing to issue loans. However, the terms may not be so favorable. Microfinance organizations also help improve credit history. Almost no one here looks at past loans. But they also transfer data on creditors to the Credit Reference Bureau.
You can contact specialized companies that help people with this issue. The essence of this method is that you will have a legal entity as a surety. Banks are eager to give even large amounts against such guarantees. The solvency of such organizations is easily verified, and the risk of default for the bank is minimal.
Much also depends on the documents provided. If you provide only a passport, then the interest rate will be high. A complete package of documents guarantees more favorable terms. For example, if there is an income certificate among the documents submitted, then there will be no allowances.
You can get a credit card. Your credit history is absolutely irrelevant here. Requirements for issuance are minimal, especially for holders of debit cards of the bank where you plan to get a credit. But there is one big drawback – the high interest rate. But many banks provide a grace period and for a couple of months you can use money without interest or with a reduced rate.
You can apply for a debit card at any of the commercial banks, and then activate such a service as overdraft. The main thing is to actively use the card for a couple of months. The bank will see constant cash flows and it will trust you. Then you just open a line of credit. Overdraft is convenient in that it allows you to withdraw more cash from the card. Therefore, a regular debit card easily turns into a credit card. At the same time, no one will ask for extra documents. Many people use this method, but the main thing is that you have a trusting relationship with the bank.