Bank customers speak of a rescheduling with private credit if their credit report contains a negative feature. Literally, the term applies to any debt rescheduling that has been entered into through a domestic credit institution, as such is always linked to a solvency request for credit protection. The negative private credit entry makes debt rescheduling difficult, but does not completely exclude it.
Why bank customers with bad private credit apply for debt restructuring?
Many bank customers rescheduling with private credit have taken out their current loan before forfeiting the negative credit. Savings in interest rates through the repayment of existing loans are seldom possible for these borrowers, so a frequent reason for rescheduling with private credit is the desire for lower monthly payments thanks to a longer loan term. In this case, we recommend a request from the current lender, which is often denied.
The second reason for a rescheduling with negative private credit is the need for a credit increase. Borrowers are merging the existing liabilities with the new loan.
In part, consumers with bad private credit call the better overview by combining multiple loans into a single loan as a reason for debt restructuring. This argument is also used by banks specializing in debt rescheduling loans. However, borrowers only get a real advantage if their new loan is linked to lower interest rates or lower monthly installments than the previous loan.
Find a cheap loan for rescheduling bad private credit
Before applying for debt restructuring, borrowers compare the terms of different loans. They pay attention to the effective annual interest rate and flexible repayment options. Different banks provide for the right to an occasional installment suspension in the loan agreement, so that borrowers are not in arrears even in the case of unexpected special expenses. Another positive aspect is the right to an early repayment without deduction of prepayment interest, as it offers the possibility of a new debt rescheduling with loan interest rates still falling.
Domestic credit institutions are most likely to agree with debt restructuring with private credit if the claimant is able to borrow or provide a guarantor with another borrower. Many banks prefer borrowing in pairs to a private individual loan guarantee because, in addition to economic performance, they also need to assess knowledge about risk assessment. In addition, courts doubt the effectiveness of guarantees in strong emotional ties between the credit bureau and the bank client partially, while the co-application no comparable risk exists.
Some financial institutions have specialized in rescheduling and offer them to those with bad private credit. Lending is actually easier with poor credit ratings than with traditional banks. Whether the offers of the special banks are cheaper than the loans of classical financial institutions, consumers determine on the basis of a credit comparison.
For a rescheduling with private credit without another applicant or a guarantor, the commission of a reputable mediator offers. In this case, costs only arise in the case of actual lending. The good market knowledge of the credit intermediary and his extensive contacts mean that even in extremely difficult cases he usually achieves the desired rescheduling. He asks the loans mainly from foreign banks, with only a soft negative feature, the rescheduling of a domestic credit institution using the intermediary is also conceivable.
On platforms for private credit brokerage a reschooling with private credit is basically possible without a guarantor or further claimant, unless there is a hard negative feature. The private lenders registered there are most likely to record inquiries from borrowers who depend on a lower monthly installment than their previous loan. The reason is the frequent orientation to social criteria, in which rescheduling interest savings is not considered an urgent loan request.
How is the rescheduling of negative private credit?
In the case of a rescheduling with private credit, the inclusion of all current liabilities including the disposition credit is customary. An exception applies to loans with extraordinarily favorable interest rates such as car financing. If the borrower also has a real estate loan, this is usually not included in the debt restructuring measure due to the special collateral and the often impossible early repayment.
The new lender transfers the individual installments for the rescheduling of the existing loans directly to the existing credit accounts. Only the portion intended for the settlement of the disposition credit and the possible top-up amount are included in the current account of the borrower.
In addition to a low interest rate, it is important to choose a sufficiently long repayment term for debt rescheduling with private credit. Too short a contract period, because of the high monthly installments associated with it, easily leads to later borrowing or to reposting the repayment credit to settle the loan installments.