Loans without creditworthiness: a myth and a lure for customers?
Creditworthiness is a feature examined in every client applying for a loan to a bank or for a loan to a non-bank company. It consists in assessing whether the client has sufficient liquidity to repay the commitment without any problems. The lack of such ability practically excludes the possibility of obtaining money, but … not always. Loans without creditworthiness have appeared on the market, which can be a godsend for people rejected by banks.
Loans without creditworthiness – but there are hooks
More precisely: a higher interest rate or higher commission for a company that provides loans to people without creditworthiness. If the standard interest rate ranges, for example, between ten and fifteen percent (not including APY) for ordinary payday loans, it will be even twice as high here. Calculated as final costs, there may be quite a big difference ranging from several hundred to even several thousand dollars.
Extreme loan terms
When comparing loans without creditworthiness to cash loans (payday loans), without BIK or ID cards, it’s easy to spot the basic common features, but above all the differences. Applicants for such a loan must be aware that although they are in a poor financial situation they have a chance to get it, it is still not always the case. Loan companies set their own terms and conditions for these benefits, and they are usually very strict. For example, in most companies you must be not 18 but 21 years old and less than 65-70. Others do not provide benefits to people who have no income, while others require the borrower to appear with at least one resident. It is worth to read carefully the conditions that must be met; thanks to this it will be known in which companies one has a chance to get a loan and which will immediately reject the application.
Loans – a rescue for debtors
Despite the sometimes harsh loan terms, it’s still one of the easiest, fastest ways to get the money you need. That is why loans without creditworthiness are very popular especially in two social groups. The first is people between 25-35 years of age who need money, eg to repay purchased RTV equipment, finance home expenses, or travel abroad. The other are debtors who use loans mainly to pay off their existing liabilities, so as not to fall into further penalty interest and not increase their debt. Debtors have a good chance of obtaining a loan both without creditworthiness and at zero income, although the price of such a benefit is a correspondingly higher interest rate. For this reason, although this form of loans tempts with easy accessibility and minimal formalities, one should really think carefully before signing the contract.