When applying for a loan, the creditworthiness of the borrower plays an important role. In addition to a sufficient income, a good credit rating also includes a positive credit bureau information. If you apply for a loan with a negative credit bureau entry, you will either receive a refusal or you will have to pay a much higher interest rate for the loan. For example, what exactly applies depends on whether the negative entry is merely an unpaid invoice or a canceled loan.
Is a loan possible even with a negative credit bureau entry?
Whether a bank grants a loan even with a negative credit bureau entry depends primarily on the reason of the entry. Most banks thoroughly check what type of entry it is. If a mobile phone bill was not paid for once and this entry is possibly a bit older, some banks are ready to grant the loan with a negative credit bureau entry. Of course, the precondition is that the borrower meets all other requirements, such as a sufficient income. However, due to the poorer credit rating, the person concerned must expect a higher interest rate. Anyone who has received a rejection due to negative entries in credit bureau on his loan request, still has the option to apply for a loan without credit bureau.
What is a loan without credit bureau?
Such a loan is primarily realized through a bank based in Switzerland. The advantage here is that Swiss banks do not do a credit bureau query. In addition, no data on the loan to the credit bureau are reported. Since such a loan can not be requested directly from a Swiss bank, the borrower must use the services of a credit intermediary. Such an intermediary can be found on the Internet. It is important that you make a detailed comparison of the different agents.
These differ both in terms of the offered interest as well as the respective benefits. Under no circumstances should you choose a broker who demands payment of the brokerage commission in advance. Reputable credit intermediaries charge the commission only with the payment of the loan amount. Even though the Swiss bank makes the loan possible with a negative credit bureau entry, a few conditions still have to be fulfilled.
Requirement for a credit bureau-free loan?
The credit can be applied for by all German citizens over 18 years. In addition, the permanent residence and the workplace must be within the Federal Republic. Another requirement is a regular income, which must be within the attachable area. In addition, there must be a permanent contract of employment, which must exist for at least 12 months with the current employer. If the borrower then still has a German checking account, he can apply for the loan with a negative credit bureau entry.