Loans without credit bureau are a tempting alternative in financially difficult times to make short-term money to close financing gaps or to fulfill a long-cherished dream and to make a larger purchase. The number of providers of loans without credit bureau has grown steadily in recent years. As a result, unfortunately, there are also some dubious providers on the market, but they are often well recognized by some warning signs. But for whom is a loan without credit bureau in question at all?
The main reasons for a loan without credit bureau
German banks such as major banks or savings banks are required by law to check the creditworthiness of the applicant before lending. The banks are contracting partners of the credit bureau (the abbreviation stands for “protection association for general credit protection”), a credit reference agency.
The credit institutions are among the so-called “A-contract partners” of the credit bureau, to which both positive and negative characteristics of the persons stored at the credit bureau are transmitted. Since the past payment history of the applicant as well as many other data are collected here, the banks are the credit check easier. As part of the reciprocity principle, they then return the granted loan to the credit bureau.
And this is precisely one of the reasons for choosing a loan without credit bureau: loans taken out at credit bureau worsen scoring. This means that a possibly already planned further loan automatically becomes more expensive. So if you only need short-term money to finance a car purchase, but plans to buy a property in the foreseeable future, a loan without credit bureau can be an interesting alternative, because the amount of a real estate loan makes small differences in the offered interest rate the running time and the total calculated big differences.
Another reason for an instant loan without credit bureau is the possibility of a private settlement with multiple creditors. Anyone who owes money to several creditors may be able to agree with them to pay the debt for a partial deduction of the sum. If the creditors waive part of their claims, a loan without credit bureau can count on this purpose, especially as an entry into the credit bureau with the associated disadvantages for the future (negative features) is omitted.
Of course, loans without credit bureau are especially attractive to people who, due to their current financial situation, would no longer be granted loans by their house bank or other traditional credit institutions. However, under certain conditions, it is also difficult to obtain a loan without credit bureau, for example in the case of unemployment or ongoing insolvency proceedings.
Due to the high interest rates for loans without credit bureau (the credit intermediaries can pay the higher risk of default with higher interest rates, which are partly above the interest on disbursements and well above the market interest rates) these are not a suitable means to replace old loans and rescheduling to attempt. In such cases, it is advisable to be assisted by experts in debt counseling.
Finally, there is a group of borrowers whose creditworthiness is good and who will not have any problems repaying a loan, but whose scoring at the credit bureau is still bad. In many cases, minor details are sufficient. Likewise, data at credit bureau are partly outdated or incorrect, so that regular banks will no longer lend. Even in these cases, a loan without credit bureau is of interest.
The credit bureau is not undisputed
Due to its market power, credit bureau has an outstanding position among the credit reporting agencies. Opening a bank account without signing the so-called “credit bureau clause” is almost impossible. The justification that lower interest rates ultimately benefit borrowers due to lower risk is often cited as a defense. It is also claimed that the credit bureau ultimately protect consumers from over-indebtedness – which consumer associations, however, criticize as incapacitation.
The transparency of the credit bureau system is low; For example, credit bureau does not disclose how accurately its scoring value is calculated. The Stiftung Warentest came to the conclusion that in a not inconsiderable part of the data sets the data is outdated, wrong or incomplete. The biggest problem is that credit bureau does not examine the facts reported to it.
For example, undue entries (such as those made by telecommunications companies) can quickly lead to an unfounded deterioration of the scoring, which ultimately only leaves the consumer with the path to a loan without credit bureau, as long as the data at credit bureau are not cleared up.
Where do you get a loan without credit bureau?
Providers of loans without credit bureau are mainly pure credit intermediaries. So they do not lend the loan themselves, but mediate between the applicants and their lenders – mostly foreign banks. Since domestic banks almost always rely on the credit bureau, Swiss banks have often acted as lenders in the past, which also gave the loan without credit bureau the name “Swiss Credit”.
On the Internet there are a large number of intermediaries of personal loans without credit bureau, whose contract conditions can also be compared well here. Some providers also act as intermediaries between the applicants and private investors who contribute small or large sums of money as part of an investment.
What are the requirements?
Even loans without credit bureau are not granted without a credit check. Although the questionnaire is omitted from the credit bureau as well as the feedback of the granted credit to them, but the credit intermediaries check the creditworthiness of the applicants to minimize their default risk. However, the examination is based solely on the applicant’s self-information, salary statements and the like.
The conditions for granting a loan without credit bureau are for most providers resident in Germany and a regular monthly income (depending on the provider, for example, at least 850 euros or at least 1,000 euros). The minimum age is 18 years; Some providers also have a maximum age in their terms (for example, 58 years).
Costs and usual conditions
Due to the higher risk for the provider, the interest rates for a loan without credit bureau are significantly higher than those for a commercial loan, as the house bank grants. Part of the interest rate is also higher than for a credit line. The contribution of collateral (for example, a property) can significantly lower interest rates.
The range of loan amounts offered is large, but for loans without credit bureau sums between 3,000 and 20,000 euros are common. Some providers also advertise large sums of money – however, given the level of interest rates, these offers are unlikely to be profitable. The terms are between twelve and 120 months. Often a salary assignment is required to secure the loan.
Tips for selecting the provider
The query of the credit conditions of several providers was formerly a negative feature for the credit bureau, this rule is now repealed. For loans without credit bureau this criterion is not important anyway, so the consumer should compare to their heart’s content and ask as many queries. Important criteria for selecting a reputable provider are:
The registered office is in Germany (foreign providers may have problems enforcing claims in legal disputes). Interest rates above market levels are required (for non-credit bureau loans, interest rates are always above market levels, as the provider must hedge the increased risk and the more complicated credit check)
There are no fees required in advance (dubious providers send documents against cash on delivery, offer overpriced telephone hotlines or require agency fees). The query of the conditions should always be free and without obligation. A serious broker of loans without credit bureau gets his commission from his contract bank, not from the customer!