Is it possible to refinance a loan with a bad credit history? How to re-credit with a bad credit history?

Making out a "big and expensive" loan, many borrowers do not even assume that they can expect the fate of non-payers. However, time passes, and at some stage they face financial problems. The credit history is finally spoiled, and debts begin to grow like a snowball. In this case, the ideal option is to refinance a loan with a bad credit history. What is this service? And is it realistic to get it for the desperate non-payers?

Does the negative feedback in the credit history influence the decision of the bank?

It is not a secret for anyone that there is a mistrust on the part of credit institutions towards their new clients or unreliable citizens. In particular, we are talking about borrowers, who, for certain reasons, the credit history was spoiled. It can become the last pebble on the scales, which will lead to a preponderance not in favor of the debtor. But nevertheless borrowers with a spoiled reputation have a chance to refinance with a bad credit history. How is this possible?

How does the refinancing of loans take place?

First of all, it is worthwhile to say that refinancing is a special banking service that allows borrowers to change the initial credit conditions in their favor. Of course, this does not mean that your debt will be written off to you. However, due to this service, non-payers have an excellent opportunity to obtain a revision of the loan agreement. What is meant?

In simple words, the borrower comes to the credit institution and asks for refinancing his loan. Of course, for this he must have very good reasons and evidence. For example, as a result of an accident or a natural disaster, he lost his only home. He was fired from his job, he was seriously injured at work, was fired, etc.

In such situations, the bank refinances a loan with a bad credit history. Those. It increases the term of the loan and thereby reduces the amount of the monthly payment so that it matches the current financial capabilities of the client.

Also, refinancing is carried out by third-party banks, other than the financial institution of the lender. These programs are aimed at attracting and, in simple terms, "luring" customers from competitors. Such loans are classified as "mixed loans" (a set of several consumer loans, cash loans, credit cards), as well as large loans (auto loans and mortgages). What do banks pay attention to when they make out the refinancing of a loan with a bad credit history and in which of them can I get this service?

Which banks have refinancing programs in place?

Refinancing programs operate in many Russian banks. They are in such organizations as:

• Sberbank of Russia (housing loans and consumer loans for refinancing);
• VTB24 (refinancing cash loans, credit cards, car loans and commodity loans);
• Rosselselhozbank (consumer loans);
• Alfa-Bank (mortgage) and others.

"Tell me where you took the loan, and I'll tell you who you are"

The first thing that the bank will pay attention to will be a credit institution, where the debtor took out a loan. After all, reputation is not only among borrowers, but also in financial organizations. And it's a sin to hide, a shadow of unreliability has been falling on some banks for a long time. In addition, the cause of the credit history of the borrower may be a banal error of the bank manager who accidentally mistook the names, etc.

Prove this fact is real, if the borrower is 100% sure of his innocence. To do this, before applying for a refinance loan with a bad credit history, you need to contact the CBK or the BCI in place (if you know what your CI is related to). And then, knowing the creditor that ruined your history, you can prove your innocence in court. Later, with a judicial verdict and confirmation of his reputation, you can safely apply to the bank.

The same applies to fraud with loans, for example, if you are a victim of scammers who have issued a loan in your name.

Amount, timing and reasons for insolvency

Before you tell us how to refinance a loan with a bad credit history, the bank will certainly try to find out the reasons for your non-payments. Especially representatives of the financial organization will be interested in the following points:

• Amount of non-return;
• Frequency of non-payments (how regular they were);
• What is the duration of your debt (day, month, two, year);
• For how long the payment was delayed (month, two, etc.).

As a rule, a small amount of debt (and one-time non-payments) is not fatal, so it is possible for such borrowers to rely on refinancing with a bad credit history. But what should you do if you were nevertheless brought to the "black list" of malicious defaulters and denied refinancing?

Options for solving the problem with "expensive" loans

If you were refused at once in several banks, referring to your unreliability, you should not sprinkle your head with ashes. There are many other alternatives. For example, you can always refer not to large banks, but to small ones. The former, as a rule, do not lack clients, so they can be too biased to pay non-payers. Small credit organizations (for example, "Tempbank") are fighting for each client and therefore are more loyal to non-payers.

In addition, if you do not have the opportunity to make loan repayment with a bad credit history in banks, you can always use the services of non-bank organizations. They can be MFIs. They also are loyal to customers, but their representatives usually do not give out large sums to the first counter.

At the initial appeal you can receive approximately 4 000-10 000 rubles. If the loan is repaid on time, the loan amount will be increased. The maximum that can be counted in MFIs is 1-2 million rubles. Unlike banks, microfinance institutions issue loans for a short period of time, and the interest for using such a loan is much higher.

If you decide to refinance at any cost in the bank, then as security for your security you can provide collateral. Or you can turn to the services of guarantors.

In short, if you need to find a solution to the problem, you can. There would be a desire.