A negative remark contains at least one negative feature, which indicates a gross breach of contract in financial matters. According to most financial institutions and consumers, remark information is also considered to be negative if the corresponding characteristic is marked as completed, whereas the credit protection company, on the other hand, counts negative characteristics with an endorsement note as neutral data. A debt consolidation is also referred to as a loan repayment and means that existing loans are replaced by a new loan. Clarification at http://hsalliance.org
Reasons and procedure for a consolidation
A consolidation despite negative information remark makes sense, if the new loan leads to significant savings. When calculating the savings potential of the credit release, consumers not only look for interest savings but also deduct any prepayment penalties they may have. A reduction in monthly loan installments is another reason for debt consolidation if the previous lender refuses a requested life extension. Debt consolidation usually replaces all existing loan liabilities, exceptionally favorable loans such as a car loan makes sense.
However, a consolidation despite negative remark is expected that the new lender wants the replacement of all current and from the remark information available existing loans. The money intended for the consolidation despite negative remark immediately transfers the new lender to the existing credit accounts, so that they are compensated. A money transfer to the credit applicant is only for partial amounts, the direct compensation by the consolidation making financial institution is not possible. This mainly affects credit card accounts, as not all issuers allow incoming payments by third parties. For objective reasons, it is also unavoidable to transfer the partial amount for the current account balance to the debtor.
Banks based in Germany are more likely to award a debt loan than a new loan if remark is negative, as this will not increase total debt. However, the prerequisite is that the negative entry belongs to the soft negative features. A renegotiation of the offered interest rate often leads to success. Finally, the applicant is in debt consolidation in the comfortable situation, with unsatisfactory offers simply existing loan agreements can be.
Consolidation loans from Switzerland
If consumers conduct their consolidation despite a negative remark through a bank, existing negative entries are meaningless, since the Swiss financial institutions do not have access to the data records of the German credit protection and complete the lending completely without remark. Thus, the processing of consolidation via a bank is also suitable for existing hard negative entries.
With only a few exceptions, the maximum amount of credit to be applied for directly with the Bank amounts to a maximum of EUR 3500. Therefore, loan repayments must be submitted by a credit institution through a credit intermediary. Thanks to his knowledge of the market, he achieves a fair price for the client and works seriously if he only calculates a reasonable salary and no costs.