The National Register of Debtors ( KRD ), Credit Information Bureau (BIK) or Economic Information Bureau (BIG) – these are institutions whose services are often used by cash lending companies, as not every time. They check their potential clients there for possible debt, their existing liabilities and how they dealt with them.
Once the borrower has undergone such verification and his credit history is not the best, he will be listed as an unreliable debtor, then the loan company will certainly reject his loan application. Similarly, it can happen if we already have another loan in another institution, which is mentioned in the databases of debtors.
Then our creditworthiness is subjected to an additional assessment and it may not be sufficient to pay off two liabilities. In such cases, the only solution remains institutions that meet the expectations and needs of customers and also offer loans for people in debt or who already have other liabilities.
Loan offer without checking in BIK
Some cash loan companies do not go into information from the debtors database regarding repayment of previous obligations by the customer. They usually evaluate the current mode of payment of liabilities. This would mean that they grant loans to everyone “as it goes,” without checking and unnecessary formalities.
And in fact, there is no major problem to receive such financial support. It happens that the loan company rejects the application, but it happens much less often than with ordinary, traditional loans or even payday loans.
Financial products of this kind are directed not only to people who have a not very glorious credit history, this solution is also addressed to people whose applications have been or would be rejected elsewhere, not only because of their lack of credibility, for example never they used this type of account top-up, but for the sake of too low income or lack of a proper employment contract.
Until recently, such people could not count on the understanding of any financial institution. At the moment, the situation is completely different. Already 30 companies are able to borrow money quickly, only by a cursory verification.
For those in debt – debt relief loans
These are offers prepared for people who are currently burdened with several repayment obligations simultaneously. During obtaining these loans, contracts were signed, on the basis of which it is possible to consolidate all required installments, in one fixed amount, which is clearly specified in the concluded contract.
In this case, the debtor gets a longer repayment period, which gives the borrower much greater financial stability. Private investors usually deal with this type of financial product. This is an offer for people who are in an almost stalemate financial situation, and their applications in other enterprises would certainly be refused.
Are loans for those in debt connected with additional fees?
When using this type of financial service, the borrower must be aware that with the signing of the contract he is taking on additional ballast in the form of additional costs.
In this case, the lender may have legitimate concerns about the repayment of the money by the borrower on time, so using this type of product, you have to reckon with its much higher costs than with ordinary, traditional loans or even payday loans.
With ordinary loans, the company checks the credibility of the client and is able to assess his financial capabilities. In their case, the repayment period is usually from 1 to 30 days, but there are also more forgiving companies that offer flexible repayment time. Forbearance is usually associated with slightly higher liability costs for this industry.
Good side of loans for those in debt
Lack of client verification in the debtors’ databases – most loan companies after such a check and obtaining a negative result, whether due to an unfavorable credit history or its complete lack, reject the loan application; the loan can be obtained by indebted persons, and even those who are under enforcement proceedings – for most companies granting loans, such a borrower is listed as unable to repay another liability; there is no obligation to pay an initial fee – companies offering such financial products actually entrust money to people who have not previously paid any fees; lenders have a lot of flexibility in determining installments and repayment dates; offers are available to anyone who earns some income – although it may happen that an institution rejects such a person’s request, most often the contract is signed; loans are granted in a relatively short time, the waiting period is usually from several to several dozen minutes and in fact at that time the money appears on the borrower’s account; the most interesting advantage of this type of offer is the fact that we can do all the formalities without moving from the comfort of home, without sticking our nose from behind the monitor screen, we can do everything via the Internet.