Borrowing money when you have one or more payment notes can be a problem. This is when many lenders automatically say no to applications from people who have payment remarks. They consider that a person with a payment note does not have a sufficiently good financial position to make them lend some money.
But if you really want to borrow money, it is good to know that your chances are greatly increased to get a loan if it is the question of a loan where something stands as collateral.
Is it right to borrow?
It is important that you consider your finances before applying for the loan so that you know that you have a personal finance that is able to repay the money on time. Often, a payment note can be a sign that the economy is not in full order and if so, perhaps a loan is not the best solution.
At the same time, the economy can actually be good despite payment remarks and then there is nothing to stop you (besides having to find a lender who approves you).
The key is that you always think about whether it is right to borrow or not before you go ahead and apply for a loan. You may need to borrow money to collect more expensive credits for a cheaper loan. If you want to collect the loans, it is often good to take out a loan with collateral as the interest rate is usually lower on them.
This can be a great way to reduce your monthly costs. However, it is then required that you already own something that can be offered as collateral and where there is room to rely on. Usually this is then the question of a home.
Loan with collateral
A secured loan is a loan where you offer the lender something that they can repay if you do not have the money to repay. Mortgages / mortgages are a very good example of this type of loan. Since you can offer something in collateral, the risk becomes much less for the lender and therefore it is much easier for you to borrow even if you have a payment note.
Security in the form of co-applicants
Although this article is mainly about loans with collateral and how these go together with payment notes, it is also worth mentioning a slightly different type of collateral, namely the co-applicant or the guarantor.
A co-applicant is someone who seeks a loan with you and who shares the responsibility with you so that if you are unable to pay off the loan, the other person may do so instead. A guarantor is someone who goes well for you and your finances and may be forced to repay the loan for you, in exactly the same way. These two are more or less the same.
A co-applicant is a kind of security for the lender you want to borrow from. It is simply a second chance to get the money back even if the borrower would have financial problems. A co-applicant leads to greater security and gives you the opportunity to borrow when you might not otherwise be able to take out a loan. You also get the opportunity to better interest rates and conditions in some cases.
Lenders who offer loans despite a note of payment
If you have a little trouble getting a loan, a co-applicant is often recommended. Then your chances increase and you may be able to borrow even in spite of payment note. However, it is far from certain. There are also requirements for your co-applicant regarding income and such.
Although it is easier to get money in spite of a payment note when you can offer something as collateral, not many lenders agree to lend money.
A little further down this page you can find a small list of lenders offering their customers to take out mortgages despite payment concerns. This is because it is the most common form together with car loans that have collateral.