The low credit rating is one of the factors preventing credit withdrawal. A credit rating results from sharing financial statements with banks through the Credit Report.
Although each bank may have a different credit rating, it is close to each other and it is necessary to have a credit card, credit or deposit account in the last 5 years to obtain a specific grade.
So, what can those who have a low credit rating?
A low credit rating means that banks do not consider you safe. Factors that lower your credit rating include not paying your credit or credit card debts on time, the bank’s legal remedy for not paying the debt, and your blacklisting.
However, even if your rating is low, you can withdraw credit with some methods.
If you can’t get credit, you can use a cash card with a 12-month maturity by obtaining a credit card.
Credit Rating Ranges
People with a low credit rating may be able to use credit in certain circumstances. However, it would be correct to give details about the low credit rating beforehand. Credit rating ranges are as follows:
• 0-699 (Most Risky)
• 700-1099 (Moderate Risk)
• 1100-1499 (Low Risk)
• 1500-1699 (Good)
• 1700-1900 (Very Good)
According to these ranges, it is not possible for people in the riskiest part to get credit without increasing their credit rating. However, people in the middle and low-risk groups can take credit by applying the methods we will talk about.
Methods Applicable to People with Low Credit Rating
Persons with a low credit rating can use collateral and guarantor to obtain credit or use a loan with a low amount according to their income.
It is possible to get credit by showing collateral. Thus, even if the bank is not paid, it can give approval as it can receive payment on movable or immovable property. However, it is also important that the goods to be collateral be in line with the loan. In such a case, the expert (real estate appraisal expert) to be directed by the bank presents the conformity report to the bank.
You can get a positive reply from the loan application by showing a guarantor. The guarantor has agreed to pay the debt if he does not pay your debt. Nevertheless, the guarantor must meet certain requirements.
The terms of the guarantor are as follows:
• Adequate credit rating
• SSI registration and income are eligible for loan payment
• If the guarantor is married, the written consent of the spouse is obtained.
Although these conditions are generally sufficient, some banks may require that different conditions are met, such as the guarantor being an officer.
It is possible for people with a high income and a low credit rating to apply for a low-limit loan. To do so, it is necessary to declare both your own income and household income during the application. It is also possible to increase your credit rating by taking low-limit credits. With regular payments, you can easily upgrade your low credit rating.