The car breaks down or major repairs to the house have to be financed: These are just two of many situations in which a large sum of money is quickly required. If you don’t have any reserves, you can apply for a emergency loans from a bank. But what if when checking the creditworthiness the credit score shows a bad creditworthiness. Many banks reject a loan request with a negative credit score. Not all of them, however: Although all banks in many countries are obliged to check the creditworthiness of an applicant before granting a loan, various criteria are weighted differently.
Borrowing from insurance companies: If you have endowment life insurance or private pension insurance, you can borrow from them. Either the insurance company grants you emergency loans itself or you offer the policy as security at the bank.
Borrowing property: Even your own house or apartment can serve as security for a loan despite credit score. Bear in mind here that if the worst comes to the worst, the bank has the option of depriving you of the property in the event of insolvency. It should also be noted that some banks only grant the real estate loan, for example, to maintain or repair the property – other banks also grant this loan freely.
Securities as collateral: With a so-called Lombard loan, you use securities as collateral, but this loan is often only granted for the purchase of new securities.
If your friends and family run into financial difficulties, this can lead to disputes or even a break.