A negative credit entry makes borrowing significantly harder - but not impossible. This guide shows you legitimate options and warns against fraudulent offers.
Why is a loan with bad credit difficult?
The KSV1870 stores information about your payment behavior. Negative entries arise from:
- Unpaid bills after collection proceedings
- Loan defaults or payment delays
- Insolvency proceedings
- Wage garnishments
Banks and lenders use this information for risk assessment. A negative entry signals increased default risk - but it doesn't automatically mean rejection.
Legitimate Options with Poor Credit
Peer-to-Peer Loans (P2P)
Private investors provide loans through platforms. They assess risk themselves and are sometimes more flexible than banks.
Pros
- More flexible credit check
- Individual assessment
- Smaller amounts possible
Cons
- Higher interest rates
- Not guaranteed
- Check still required
Loan with Guarantor
A person with good credit guarantees your loan. This reduces risk for the lender.
Pros
- Better approval chances
- Better terms possible
- Regular bank loan
Cons
- Guarantor liable for default
- Not everyone has a guarantor
- Strains relationships
Secured Loan
You provide collateral such as a car, savings, or securities.
Pros
- Security reduces risk
- Lower interest possible
- Even with negative KSV
Cons
- Collateral can be lost
- Not everyone has collateral
- Collateral valuation
Warning Signs of Fraudulent Providers
- 🚨Upfront fees or processing charges before disbursement
- 🚨"Guaranteed approval" or "100% loan without checks"
- 🚨Pressure for quick signature
- 🚨No clear statement of effective annual interest rate
- 🚨Contact only via mobile phone or private address
- 🚨Request to purchase prepaid cards or vouchers
Alternative Solutions
Have credit entry deleted
Check if entries are incorrect or outdated. After settling debts, some entries can be deleted earlier.
Debt counseling
Free debt counseling helps restructure your finances. Austria has government-funded counseling centers.
Request smaller amount
Lenders are often more flexible with smaller amounts. Consider if you can manage with less.
Improve creditworthiness
Pay outstanding bills, close unused accounts, and systematically build your credit.
Submit Non-binding Inquiry
Giromatch also checks possible options for difficult credit situations. The inquiry is free and non-binding.
To Free Inquiry