If, after a few years, a new car has to be produced, the bank is usually a welcome customer because it is a reliable customer. But who has a negative entry in the credit bureau by a payment default in the past, will be quickly disappointed. However, the search is not hopeless.
Car loan with negative credit bureau entry only with risk premiums
Because a request from a classic bank rarely succeeds, searching the Internet for alternative financial services is worthwhile. The demand for credit despite bad credit is getting bigger, so some companies have specialized in this clientele. In addition to the growing market, this circumstance should also be linked to a good return – of course apply to a car loan with negative credit bureau entry risk surcharges, which are reflected in a relatively high effective interest rate.
Unemployed with little chance of success
For typical loan sums, as they are due for car loans, so about 5,000 to 15,000 euros, with good credit ratings interest rates of 5% are possible. In a car loan with negative credit bureau entry this interest rate usually rises to twice the value. Although the entry at the credit bureau is a significant disadvantage in the search for credit, but not alone decisive. Important is likely to be the banks’ regular monthly income. In principle, the borrower should have an attachable income. This requires not only a sufficiently high salary, but also the lowest possible number of persons for whom the debtor is in charge of maintenance.
In addition, unemployment benefit and BAföG are not counted as income. Anyone who is employed on a fixed-term contract or within the probationary period should also have a poor chance of obtaining a permit. As with other loans, the age must be between 18 and 58 years – but a second borrower could make sure that the decision of the bank is positive. In addition, other current loan commitments are disadvantageous because it reduces the scope for repaying a new loan. And that should be as high as possible, even in the interest of the debtor: For the higher the monthly repayment, the faster the car loan can be repaid with negative credit bureau entry – and thus cheaper.
Credit term as short as possible
The term is partly responsible for the amount of the interest rate. If the credit is to remain cheap, the limit is often 48 to 60 months. Especially with a car loan with negative credit bureau entry should be taken into account that the car is an important security for the loan. The loan can not be paid any longer than the car can be used. Otherwise, over-indebtedness threatens when the next car is bought.