You may have heard of different loans, such as interest-free, fast, and debtor loans. Debtors are also called debtors because they are not allowed to lend. So why are there particular loans even for them?
If you are interested, read this article, where we will tell you what a debtors’ loan is and where you can find one. In addition, if you are a debtor or simply consider yourself one, you will find it helpful to know whether this is the case or whether you may just be mistaken in thinking you are.
A loan for every person and situation
Nowadays, loans are offered to almost everyone on the planet. In the past, banks could only grant personal loans or mortgages to those who met strict criteria, but today, lending has become more accessible. Now, non-bank lenders, if they are licensed, can provide people with a wide range of loans.
For example, on some loan comparison sites such as NetCredit or Comparo, you can find this type of loan:
- loans immediately after the age of 18;
- loans for debtors with bad credit history;
- loans without a job;
- loans for people working abroad;
- loans for pensioners.
This means lenders now try to offer credit to anyone, even people at risk. It is now easier for lenders to recover debts if they are not repaid, so they have become more loyal even to those who were already in debt in the past. In turn, this option helps responsible people in difficult situations to get their finances in order and improve their credit rating for the future.
Credit for debtors with bad credit history
Having established that nowadays, creditors seem to do everything they can to get you to take out a loan from them, let’s take a closer look at what is on offer to the debtors mentioned above. Let’s find out what the interest rates, repayment amounts, and terms of such loans usually are, as well as other details.
Ferratum loans for almost everyone
This is a non-bank lender that lends to people itself. It offers a personal loan of up to €12 000 or a credit line of €400 for up to 7 years at an interest rate of 15% and 50% per annum.
The terms of their loan or credit line do not state that you cannot get a loan with existing debts, so it is worth sending them an application. However, be aware that you must be over 19 years old and have an account and phone number in Latvia when borrowing from Ferratum.
Sefinance – a trusted partner with the best reviews
Another place where debtors can turn for financial help is the financial intermediary Sefinance. They charge nothing for their services but look for suitable offers for you. People even turn to them for re-crediting or loan mergers to find something ideal for debtors.
They send you text messages on your phone with the loan amount, term, and interest available, and you decide whether to accept a particular offer or wait for a better one. This independent intermediary keeps sending your application to all new lenders for as long as you want without disclosing your details to third parties, so you don’t have to worry about your data.
Bino – a potential fast loan for debtors
This financial institution offers customers a credit line from €50 to €5,000 with a minimum monthly payment of €25. This can be advantageous because you are not tied to any repayment terms and can repay the loan whenever you want.
The terms of the credit line on the Bino website do not specify that the borrower must have a positive credit history so that you can leave your credit application even with a not-so-clean credit history. Most importantly, you must now be able to repay the new loan.
What if I am refused a loan as a debtor?
If many lenders refuse you a loan and you think it might be because of your previous debts, you can check. In Latvia, there is a so-called credit register, which contains all the details of your loans, no matter when they were taken out. When you see that you have outstanding debts there, you can be sure that you are a debtor, and you can think about how to repay those debts.
However, you have been looking for debtor credit. What should you do if you have already been refused in several places? Firstly, we recommend checking most non-bank lenders on comparison sites such as NetCredit or Comparo. By applying through these comparison sites, you will at least be sure you have gone through most lenders. In addition, there are ranked loans for debtors.
Secondly, if you are not granted a loan, alternative methods exist. For example, you can ask your relatives for a loan. It is also worth looking around to see if there is anything of value in your house you can mortgage and get a small amount of money. There are always opportunities. It’s just about looking for them!
Credit is a lifeline for debtors
If you have tended to take out loans and default on them in the past, this is not the end of your credit journey. Even well-meaning people can take out new loans to show that they know how to be responsible with credit and, more importantly, how to repay it and buy gift cards.
If you are not approved for debtor loans and have existing loans, try arranging a loan merger. It will help you move towards paying off old loans quickly and sorting out your credit history rather than just waiting for a debt recovery case to expire. Treat lending responsibly!