If you have one or more payment notes and want to borrow money, this can often be difficult. From the lenders’ perspective, this is a bad sign if a person has already made payment notes. A payment note means that the person in question has at least once before repaid a debt as it is intended. They are then afraid that this will happen again with the debt to them that a loan would entail.
However, it is only difficult to get a loan that is not impossible. Here we will take a closer look at the usual types of loans and how this can go if you want to borrow despite payment remarks.
However, what one can say generally applies to all loans is that you have to have a good finances if you ignore the payment note. The debt at Good Finance should be repaid otherwise it is almost impossible to borrow money yourself without special help that you can read about in our article where we raise the issue of loan despite debt at Good Finance.
The lenders who may want to lend to people with payment notes will do a credit check that gives a total rating on the credit rating and here the payment note pulls down the rating and things like income pull it up.
Micro loan with note of payment
These are micro-loans, which are the type of loans that are usually easiest to obtain if you have one or more payment notes. It is also the question of the smallest loans why no huge sums are required to repay them.
Here are a number of lenders who have chosen to focus on lending to people with complaints. If you want to find a list of a number of these, you can read more in the article micro loan with note of payment.
Just remember that before you take a micro loan this is an expensive loan that needs to be repaid quickly. The maturity is often only 30 days.
Private loan with note of payment
If micro loans are the easiest to get approved for if you have payment notes then a private loan is probably the most difficult type. These are loans between about USD 10,000 – 350,000 without collateral. Which means that there is a greater risk for the lender to lend the money and thus they are more restrictive in lending. There may still be lenders that can be borrowed, but not many people officially go out with it.
If you take the big banks as an example, everyone there normally says no to lend money if there are remarks. The chance if you want to borrow is then to contact them directly and explain your situation. Expect, however, that very good arguments are required for them to agree to lend money.
Loan with secured despite payment note
Security is something positive for those who want to borrow money but have payment notes. The most common loan with collateral is a mortgage and where the home will be the collateral for the loan. This means that the lender can be more confident in getting their money back even if you are unable to make the repayments.
If you want to buy a house at a reasonable price and have a good economy if you ignore the payment remarks, there should be no major problems to borrow money. It is even possible that the big banks agree to lend money. However, you still need to visit them in person and have good arguments. Otherwise, there are special lenders who focus on offering mortgages to people with payment disputes or poorer credit ratings for other reasons.
Loan with the guarantor
Another option for those looking for a loan is to use a guarantor. This is a person who goes in and claims to be ready to take over your repayments if you can’t make them. This then becomes a more secure loan in the eyes of the lender and therefore the chance is greater to be approved.
The guarantor must then have a good economy himself, which means a stable income and there must be no payment remarks. Important to remember is just to be sure before taking this step as you do not want the guarantor to have to repay your loan.