It is common practice at German banks for a thorough review to be carried out before a loan is granted. This check primarily includes the credit check, which in turn is based primarily on two factors. First of all, the bank checks the customer’s income. In this context, particular care is taken to ensure that there is a positive balance of income and expenditure.
In addition, a request is made to Credit bureau so that the bank can rule out that negative characteristics about the customer are stored in Credit bureau. But what happens if the customer has negative characteristics after all? In this case, the bank will usually reject the loan application. Therefore, consumers with a negative Credit bureau do not need to apply for a loan from a “normal” bank in Germany, but can concentrate directly on the offers in the area of loans without Credit bureau.
The loan without Credit bureau, also called Swiss credit
In the case of a loan without Credit bureau, the lender does not obtain the Credit bureau information. For this reason, these special loans are particularly suitable for people with a negative entry.
Due to the origin of many lenders and credit intermediaries who grant a loan without Credit bureau, this loan is often referred to as “Swiss credit”. Characteristic of the loan without Credit bureau is not only the fact that the loan is granted even without Credit bureau information previously obtained, the loan is not reported to Credit bureau either.
Therefore, the loan without Credit bureau is also suitable for consumers who have a good credit rating and a positive Credit bureau, but still do not want a loan taken out to be reported to Credit bureau.
What needs to be considered for a loan without Credit bureau?
The loan without Credit bureau is often the last chance for people with a negative Credit bureau to get a loan at all. However, the loan should not be taken lightly or prematurely, because there are some points to consider. It is important to know, for example, that various offers of this type are unfortunately not serious.
This may be recognized by the fact that the credit intermediary would like to have the agency fee before the contract is concluded (loan contract). But even extremely high interest rates or unusual fees often indicate a dubious offer.
For all offers, whether serious or untrustworthy, interested customers should pay attention to the effective interest rate anyway. The possible duration of the repayment should also be checked so that the term does not have to be chosen too short, which could lead to payment difficulties.