How to get a mortgage or personal loan even with bad credit history - Mortage prsonal loan acquisition bad credit history tips 2021 - Apply for a mortgage when everything is in your favor, see because you are a civil servant or you have been in the same company for 20 years, usually only a mere procedure. And the same goes for applying for a consumer credit.

However, if you don't meet those characteristics, it can be a more complex process. Even more so if you have a pretty bad credit history. In this sense, you may be wondering if you have the ability to access a personal or mortgage loan in the event that your accounts are not particularly healthy.

If your credit history is weak, it's not the end of the world. You may be eligible for some credit, but keep in mind that it will be under stricter requirements with much higher interest rates and guarantees.

First of all, however, it's important to know what a bad credit history is and how it can affect you.

You can read on to see in detail how you can access funding if you find yourself in this situation.

Mortage prsonal loan acquisition bad credit history tips 2021

Your credit history is nothing more than a report that records your financial background. Put another way, gather all the paid or impacts you've had with all your debts. Both the current and the old ones. It's the service sheet you have for the banks.

Having a favorable report, or as healthy as possible, is very important, since it is requested by financial institutions prior to the granting of a credit. It is one of the factors that are taken into account to see the capacity to pay you have and to analyze the economic solvency for the future.

Similarly, credit history reflects both current and past debts. For example, if you have been punctual with each and every payment or if at some point you have not addressed the payment of a fee or receipt. Everything is reflected in the report.

Mortage prsonal loan acquisition bad credit history tips 2021

Banks and other lenders use this data to study your level of debt and payer profile. Thus, they use all the information to decide if they can offer you financing or if you carry a great risk for the bank in particular.

In the event that years ago you have not paid your debts correctly on time or if you have an outstanding invoice, you will have more difficulty with the banks lending you money.

But, as always, there's a chance.

There is no special secret to getting approved for a personal or mortgage loan. Of course, there are some concepts that you can take into account to have the best possible opportunity.

The first tip is that you shouldn't make too many loan applications at the same time. It is a negative indicator that alerts credit institutions and can pose an obstacle to the likelihood of access to credit approval. Take this into account when applying for funding.

Mortage prsonal loan acquisition bad credit history tips 2021: Another method that may be of interest is the use of a personal credit calculator. It will be a way to make sure you don't take out a loan for which you don't have the ability to repay. It is important because, fundamentally, lenders, when reviewing an application, will approve it only in the event that the user can afford the payments.

Finally, an alternative that can help you is to check your score to know your credit timing. By doing so, you will be able to get an idea of what the situation is in which you find yourself.

However, there are some personal credit possibilities that you can have in case your credit history is not the best.

These include guaranteed personal loans, which are financed at a fixed interest rate and with specific repayments in instalments each month. This formula usually requires guarantees different from those of a traditional personal loan. Also, if you can provide collateral, such as a car or other asset, the lender may be more willing to leave out some negative aspects of your credit history.

On the other hand, there are entities that can offer immediate loans of small amounts. These are less focused on your credit history, but more focused on your current financial position and your ability to repay the credit. Of course, it can be said that the interest and commissions are high.

Mortage prsonal loan acquisition bad credit history tips 2021

More news:

"In Spain, the 'buy now, pay later' market is 3%; in Sweden, 23%": the CEO of Aplázame, Wizink's fintech with which she wants to diversify the market, sees a journey to the digital business of deferred payments

Deferred payment is one of the traditional businesses of banking, but for some time fintech have also entered this industry. One of the keys is to introduce technology so that the payment process is integrated into the purchase. Aplázame is a Spanish fintech specialized in this segment of finance. In 2018, it was bought by Wizink and is one of the legs of the diversification strategy of the entity, which has had to consider its way after the court judgments against the revolving credit.

"We lived quite well. We have different business models and we're in different cycles. Aplázame is in the process of very large growth, in an operational and business model typical of a fintech with an innovative technological model", explains Raquel Garcés, CEO of Aplázame in an interview.

"What Wizink has decided is to let Aplázame maintain its business model, its independent operating model and also the culture and ways of doing that are typical of a fintech company," he adds.

In recent months, the market known as buy now, pay later, which translates as buy now and pay later, has grown in Spain with the arrival of international giants such as the Swedish Klarna (which landed a year ago) and the Australian Afterpay after taking the Spanish Pagantis.

"Well, I think that in principle there is a market. I give you a fact so that we have a reference point, the buy now market, pay later, according to the consultancy CB Insights, has a penetration in Spain right now of 2% of what is electronic commerce. If you go to Sweden, the penetration is 23% "explains the directive, which points out that we may not be going to reach the levels of Sweden, but that these data show that there is" a lot " of travel. In this sense, Garcés points out that the competition is "welcome because it is creating a market that until now did not exist".

"The more companies the more, creating it the better. So I think there is room for everyone right now. I believe that there is a path, that it is positive that there is competition because it is necessary to create concepts and value proposals that do not yet exist in Spain, and proof of this is the penetration that these products exist", he points out.

It is true, recognizes Garcés, that its size is not as large as the fintech giant Klarna, which has some of the greatest valuations in the fintech universe, but ensures that despite the size they have a series of services that do not have to envy this company.

The directive explains that the branch of services ranges from the possibility of deferred payment in 15 days to more traditional formulas of deferred loans. The use of one or the other service usually varies depending on the trade and the amount of the purchase.

On the one hand, the service with less time between purchase and payment would be buy now, pay later in fifteen days; after which a service is offered to pay in three or four installments until reaching a more traditional loan

"The maximum financing we offer is up to 6,000 euros, the average ticket depends a lot on the industry. Normally, the fashion or cosmetics industry have tickets below 100 euros and use more products buy now and pay later or pay in 3 or pay in four", explains Garcés. On the other hand, in industries with normally higher purchases, such as decoration or electronics, they tend to go more towards payment formulas in three or four installments or loans more similar to the traditional ones, but without having to carry out paperwork.

In the first cases, the price for buyers is free and it is the trade that pays a commission for using the technology platform. In this sense, Garcés explains that his service offers a double advantage for businesses. On the one hand, because it helps to generate higher purchases by making the customer consider higher purchases to which is added an increase in recurrence.

Garcés points out that with the use of his product, conversion in purchases increases by 20% and recurrence in stores grows by 40%.

The formula for the operation is to use algorithms and machine learning to make a study of the profile of purchased and with them identify the feasibility of postponement.

"We can generate hundreds of data points. There are many elements that are taken into account, from the type of product you are buying to the number of months in which you will pay the purchase volume or when you generated your email address," explains the directive. It is also taken into account that the approach for one sector is not the same as for another. For example, he explains that they have a specific product for trips with a certain lack, so that the customer does not have to pay until the trip begins.