Traveling around the world is the goal of many people but not everyone has enough money for it. Some of them need to borrow money but unfortunately, not all have a good credit history. This article will discuss about how to get funding for bad prayers that you can use not only for everyday needs but to finance your travel journey!
What is funding for bad payers?
Personal loans for bad credit are a specific type of loans for those who have had financial problems in the past, such as delays in payment of installments or cases of insolvency. Banks do not easily credit people with bad credit ratings, which is why bad pay loans exist.
Loans for bad payers are generally provided by specialized companies and intermediaries, which grant credit through the assignment of the fifth salary, the delegated loan or through the formulation of loans.
Who are the bad payers
Being bad payers means to be included in the so-called “bad payers lists” compiled by the Central Authorities of Risks, which have the purpose of reporting to banks those who have delayed paying their debts or are found to be insolvent. The main occasions in which it is reported as bad payers are: the non-payment of one or more installments of a loan, the seizure of one or more assets, the issue of uncovered checks without providing to pay the missing amount within the time law. Following these circumstances the bad payer is included for a period of maximum 5 years in the “bad payers lists” and could therefore encounter great difficulties in accepting loan applications. For banks and lenders, granting loans to bad payers is considered risky because they are considered to be potentially insolvent.
The types of loans for bad payers
The banks provide some specific types of loans for bad payers: the sale of the fifth is one of them. In fact, through the assignment of the fifth, loans can be obtained for bad payers, because the salary of the applicant (if he has a fixed paycheck) is sufficient guarantee for the bank to grant a loan.
Those who can not count on a fixed monthly salary may find it more difficult to obtain a loan for bad payers. In this case the solutions can be two: use their assets as a guarantee of financing, or use the guarantee, which provides for the intervention of a guarantor who is responsible for the payment of installments if the debtor is unable to meet their commitments with the bank.
For self-employed workers, as well as for bad payers who do not have enough pay, sometimes the presence of a guarantor for the loan can be requested. In this case it is requested that a person other than the applicant guarantees the possibility of repayment of the loan in the event that the applicant is no longer able to do so. Normally it is required that the third person is in possession of a paycheck, but the characteristics required vary depending on the type of personal loan required.
From the variety of bad paying profiles and the multiplicity of personal loans available for this category of people, it is clear that in this case the comparison between different personal loans is the most suitable strategy to find the best product for your needs. Finally, consider that even for the bad payers there are available many personal loans online, which can be requested in a short time and without the need to go to banks or other subjects that provide loans.