Credit despite chargeback

 

When taking out a loan, it is always important to have as few financial difficulties as possible. So if the borrower can show a good income in addition to a good Credit Bureau and also has no other financial problems, these are ideal conditions for borrowing.

Unfortunately, however, not everything always works the way you want it to. Many borrowers can show a good Credit Bureau or a good income. But sometimes it happens that the account is overdrawn and chargebacks cannot be avoided. The loan should then compensate for these small shortcomings with little effort. For this reason, there are borrowers who are looking for a loan despite the chargeback.

Can there be problems?

Can there be problems?

If a chargeback is the only financial bottleneck that the borrower brings with it, there is nothing standing in the way of taking a loan despite the chargeback. Because a simple chargeback does not mean that the person concerned is suddenly no longer creditworthy. But on the contrary. Because a chargeback can happen to anyone and can be quickly compensated by simply instructing the money again.

However, if you do not do this and reminders flutter because of the chargeback, this can become a problem when taking out a loan despite the chargeback. Because if the reminders become an enforcement order, the chargeback becomes a case for Credit Bureau and leaves a negative entry there. The desired loan can then no longer be taken up easily.

The bank statement

The bank statement

Many borrowers are afraid that due to the fact that the bank statements have to be submitted when applying for a loan, they will not get a loan because the chargeback is noted. However, this fear is completely unfounded. Because as long as the chargeback has no far-reaching consequences, it is completely irrelevant for borrowing. The lender bank only wants to use the bank statements to check how high the monthly income is and what expenses are related to this income. This enables the bank to determine the amount that can serve as a monthly loan installment.

Which loan solves the problem?

Which loan solves the problem?

A simple installment loan is always recommended as a loan despite the chargeback. It allows the loan amount to be individually designed so that it can be adapted exactly to the project. Not only can the chargeback be cleared, but at the same time another wish or liability can be fulfilled or paid for. Since an installment loan is not earmarked, the bank does not have to be told what the money should be used for.

In addition, it is not necessary to take out the installment loan from the house bank. It can be requested from any bank. Since the range of loans is very large, it is worthwhile to make a small comparison between various offers before signing the contract to determine whether the best possible offer can be found. With a good credit rating, there is an installment loan with a small loan amount of up to 3,000 USD with an interest rate of less than 3 percent. If you want a little more money or if the credit rating is not quite as good, the interest rate quickly rises to 9 or 10 percent. Here you have to look and compare very carefully so that the loan is not too expensive despite the chargeback.

By the way: An unfavorable credit rating can always be improved by a second borrower. This lowers interest rates and increases the chances of a good loan offer.

Alex Darwin

Author: Alex Darwin

Alex is a former budget manager turned entrepreneur. He works mainly at home on his credit score advice website and writes a financial blog on the side. He hopes to expand his business into a full online lending company for bad credit as soon as he gets enough investors.

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