Is a bad credit history a verdict?

So, you needed a loan. Having been refused in one bank, you went to another bank, but there you also suffered a failure. What is the problem? It would seem that you also have a certificate of income, and the required amount is not out of the cloud. With such problems, people who have a bad credit history often face. What does it mean? It's very simple: at some stage of your life you refused to pay a loan or regularly detained contributions.

For banks, the customer's credit history is one of the most important criteria. And if you have proven yourself as an irresponsible borrower, it will be difficult to correct a negative reputation. After all, the bank is absolutely not interested in cooperation with those people who are prone to violations of the terms of the contract. In fact, your life circumstances for them are practically irrelevant. Much more important is how reliable you are as a borrower.

How is a bad credit history formed? There are several violations that can contribute to this:

• Full non-return of loan funds (this violation is the most serious, and in the future, you should not expect a positive loan decision at all).
• Multiple delinquency of payments for a period of 5 to 35 days or more (the average severity of the violation).
• Single delay in payment for less than 5 days.

As for the last point, it is not considered a violation as such. After all, it is quite common for a borrower to make a deposit to the deadline for payment, and they simply do not have time to reach the bank at the right time. Little attention is paid to such trifles. If the delays for a period of less than 5 days are regular, an ideal credit history can not be named. However, most banks will not see serious reasons for refusal.

If payments are overdue for a period of five days to 35 - this is already a bad credit history. However, if the debt has been paid in one way or another, the bank can subsequently approve your application for a new loan.

Customers, who in the past have not paid credit funds at all, are not even considered by banks - they are immediately denied.

However, a bad credit history can also be found in a person who always conscientiously paid the debt to the bank. Obstacles to obtaining funds can be litigation, recovery of alimony or even such a trifle as debt to a neighbor.

How to fix the situation?

Many people are wondering where you can get a loan with a bad credit history. Of course, you can find such opportunities. However, you can hardly cooperate with official structures. And for this you have to pay. Therefore, it is better to think about how to fix your credit history (or rather, improve it).

• Visit the bank's branch and show evidence that at the moment you have changed your attitude to credit, have become responsible. For example, you can present statements confirming the current payment of various accounts (utility bills, etc.) for the past few years. The big advantage will be the availability of documents confirming high solvency and regular income.
• Explain the reasons for the failure to fulfill the loan obligations (if the reasons did not depend on you and were related to illness, reduction at work, nonpayment of wages, etc.).
• Another proof of your trustworthiness may be deposit accounts opened in this bank (from 1 year).

Credit in cash with a bad credit history can be taken in special services, however, as a rule, for such a pleasure it is necessary to pay sky-high interest payments.