Debt restructuring means that the borrower replaces existing loans with a new loan. The purpose of debt restructuring is to pay lower interest on existing debt in the future. A second sensible reason for rescheduling is a reduction in loan interest due to an extended term if the original lender does not agree to a change to the existing contract.
A bad private credit checker does not necessarily have to consist of existing negative entries, but can also refer to a weak score.
Debt rescheduling with poor score
If consumers have taken out different loans, the private credit checker score will automatically deteriorate. However, this value is not very meaningful since the private credit checker has no information about the occupations and income of consumers. In addition, a weak private credit checker score rates the failure of an additional loan as above average. A debt rescheduling is not a new borrowing, but a redistribution of existing liabilities.
For this reason, rescheduling in the case of poor private credit checker in the form of a weak score is generally possible if the borrower has so far regularly met his obligations. The bank can be sure that its customer is actually rescheduling the debt and is not requesting another loan by transferring the individual transfer amounts directly to the previous lenders.
Negative entries and debt restructuring
If you want to reschedule bad private credit checker in the form of a negative entry, you also do not take out a new loan. The lower interest rates to be paid in the future will even make it easier to repay existing debts. Banks naturally pay more attention to their own risk as well as the overall risk of the complete financing, so that they often reject debt restructuring if private credit checker is bad because of negative entries.
However, this does not always apply if the negative entries in the private credit checker are weak negative features that were forfeited a long time ago. However, the best chance of rescheduling a bad private credit checker is if the borrower entrusts himself with debt advice. This works preferably with small local banks, which enable their clients to reschedule debt in a difficult situation.
Debt counseling staff often achieve reduced credit terms when they present the bank with a convincing repayment schedule. Taking out a Lite lender private credit checker-free loan is rarely suitable for rescheduling when private credit checker is bad, since the interest rates are higher than most existing loans.
In addition, the maximum loan amount for Lite lender loans without private credit checker is limited to 3500 USD, while higher amounts are regularly required for debt rescheduling. Debt rescheduling makes more sense and is also possible with larger sums if the borrower can provide a surety.