Consumer credit is a type of loan issued by both banks and private creditors, and where it is possible to receive medium-term loans up to EUR 10,000.

Consumer credits are used for a variety of purposes, from buying a car to travel and other entertainment, including home improvement, medical services, and essentially everything that requires more money. Consumer credit is available at the bank, but then you need to go to the branch and fill in various paper mountains, but you can also do it with private creditors, right here on the internet. Of course, banks offer lower interest payments, but private creditors require higher interest rates, however, these percentages outweigh the fact that money is received immediately and there is no need to fill out any paper on where the money will be used or why the loan is taken. Of course, consumer credit must also be careful, as with any other type of credit, and can not take the loan out recklessly, so non-bank creditors also check the credit history of their customers before the loan is issued.

 

Bad credit history

Bad credit history

Those who do not yet know what a bad credit history means will be able to find out, and basically it means that the debtor has not paid it back on time or has not paid back at all and the creditor had to involve debtors to recover the money. Credit history can be damaged by both large and small credits, and basically, as you do not repay a loan, it is recorded in the credit register, which is a database for obtaining and recording these data. Of course, if you miss a few days, but then make a loan payment, you are unlikely to be recorded in this register, but if you do not fully repay the loan and have debtors involved, then that record will definitely appear there. Having any credit lenders before the loan is issued, checks the customer data in this credit register, where they are stored for up to 10 years, and if checking the debtor’s data reveals that his credit history has been damaged, the credit will most likely not be issued or will have much worse conditions.

 

Consumer credit with damaged credit history

Consumer credit with damaged credit history

If you want to get a consumer credit, but you have a bad credit history, then it is likely that the bank will not give you such a loan because the lender will see this information when checking the credit register. If the credit history has been spoiled recently, the credit will certainly not be issued to you, but if the infringement has been several years ago, the creditor may only make a loan with worse conditions to mitigate your risk. Speaking of non-bank creditors, they are somewhat more modest, and they also issue loans with damaged credit history, but they also look at each customer individually and look at the total value of the customer, the amount of credit, asking why credit history was damaged, and so on. etc. Essentially, if you want to get this consumer credit you will need to provide all your data and explain why you have damaged this history, and only if you can guarantee that you will be able to pay the loan or make a mortgage, only then will the loan be issued because the creditors do not want to risk their money by lending it to someone who can not repay it.