Getting credit with a negative credit history can be a challenge, especially in the traditional financial market.
However, international digital banks have proven to be an interesting alternative, offering flexible and less bureaucratic options.
This post will highlight the best international digital banks for those seeking credit with a negative credit history and offer valuable tips to increase your chances of approval.
1. N26
N26 is a German digital bank that has gained popularity for its user-friendly interface and transparent fees.
While N26 does not have an explicit policy aimed at customers with bad credit, it does offer affordable financial products such as credit cards and personal loans.
The main advantage of N26 is the absence of hidden fees and ease of use, which makes financial management simpler, even for those facing credit difficulties.
2. Revolut
Revolut is a British digital bank that stands out for offering financial services in multiple currencies, which can be an advantage for those who travel or make international transactions.
Revolut offers personal loans in some countries, and the credit check is less rigorous compared to traditional banks.
Customers with bad credit have a better chance of being approved, especially if they have a good history of using their account and other Revolut services.
3. Monese
Monese is another excellent option for those with a negative credit rating who need a hassle-free bank account.
This British digital bank does not require a credit history to open an account, which makes it easier to access basic financial services.
While Monese doesn't offer credit directly, it does allow you to build a financial history that you can use to apply for credit at other institutions.
4. TransferWise (Wise)
While it's best known for its cheap international transfers, Wise also offers a multi-currency account that can be used as a full-fledged bank account.
Wise does not directly offer loans or credit, but it is an excellent tool for keeping finances organized and reducing costs, which can help with financial rehabilitation.
Tips for Getting Credit with a Bad Credit Score
Now that you know some of the best international digital banks, here are some practical tips to increase your chances of getting a loan, even if your credit score is negative:
1. Keep Your Finances Organized
Even if your name is on the negative list, it is important to keep your finances organized.
Pay your bills on time, avoid new debts and show that you are in control of your financial situation.
This can help convince banks that you are a good candidate to borrow money.
2. Build a Positive History
Use digital banking services to build a positive financial history.
Keep a positive balance, make regular transfers and, if possible, save money in the account.
Digital banks, such as Revolut and Monese, consider account usage history when granting credit.
3. Consider a Guarantor
If you have a friend or family member with a good credit history, consider asking them to be your guarantor.
This can significantly increase your chances of credit approval.
4. Explore Alternatives
In addition to digital banks, explore other alternatives, such as credit unions or microcredit companies that offer special conditions for those with bad credit.
5. Negotiate your Debts
Before applying for new credit, try to negotiate your existing debts.
Many creditors are willing to renegotiate payment terms to help you get out of default.
This can improve your credit score and increase your chances of approval.
Conclusion
Getting credit with a negative credit rating is challenging, but not impossible.
International digital banks offer a promising alternative, with less bureaucracy and more flexibility.
By following the tips mentioned and choosing the right digital bank, you can increase your chances of getting the credit you need to improve your financial situation.
