Regular German banks such as banks and savings banks are not allowed to lend without a credit check. For this purpose, they obtain information from credit bureau – just about every German citizen of working age has an entry with this credit reference agency. The signing of the so-called “credit bureau clause” in the credit agreements also automatically means that the loan taken is also reported back to the credit bureau.
If you do not want the credit check to be made about the credit bureau and / or you want to avoid that the loan is reported to the credit bureau, then you need a non-credit bureau credit or even a loan without credit bureau. But what is the general reason for rejecting loan applications, for whom is a credit free of debt really advisable, and who should use other alternatives?
Why are loan applications rejected?
The main reason for the rejection of the loan application at the house bank or other credit institutions and thus also the main reason for applying for a credit bureau-free loan is a negative credit bureau entry. This may happen quickly and not always justified. Not only overlooked and unpaid reminders, but also multiple bank account changes are negative criteria.
The credit bureau also does not check negative messages for their correctness. Whose request was rejected on the basis of the negative information, should seek a (once a year) free self-assessment and correct any wrong signing. This may take a while – so who has short-term funding gaps, must fall back on a loan in such cases non-credit bureaufrei.
Another important reason for the rejection is lack of collateral against credit default risk: who has a low disposable income, is self-employed for less than three years, fixed-term or probationary, too young or too old or recipient of wage replacement benefits, whose application will be rejected. Since it is difficult for these groups to approve a non-schoffling loan, it may help to present the guarantor with a guarantor who can intervene in the event of insolvency.
credit bureau-free credit despite good credit rating?
Until recently, loans were considered as the only way out for people who would not have received loans by other means. If this assessment was certainly correct at the time, a lot has changed today. On the one hand, the market is booming with debt-free loans, so that foreign subsidiaries of German credit institutions increasingly offer such loans – on the other hand, many people have recognized that even for people with excellent credit rating a credit bureau credit has advantages.
Because even if this group of people easily survived the credit bureau query from the lending institution, the borrowed loan would be reported in return to the credit bureau. This influences credit bureau’s “scoring.” Received loans, even if they are serviced on time, increase the cost of follow-up credits.
So if you know that he wants to raise a large loan, for example for real estate financing, within the next few years, then a loan can be a good alternative to being a debtor. The loan taken out is not reported to the credit bureau and thus can not influence the interest on follow-up loans – this can mean huge savings with the large sums for real estate loans.
For negative credit bureau entries
However, the main interest group for credit bureau-free loans is still persons who have negative entries in credit bureau and for this reason are not granted credit by regular credit institutions. In particular, in the case of “hard” negative features such as an ongoing insolvency proceeding or a sworn affidavit, traditional credit institutions no longer grant loans.
But also unjustified negative entries can lead to the rejection of credit. Although there is the possibility to obtain a free self-assessment once a year at the credit bureau and to correct any incorrect claims – these corrections are often time-consuming. Even though the possibility of having disputed entries blocked in the credit bureau directory at short notice does not lead to the approval of a loan, a non-loan credit may be the way out of bridging a funding gap.
However, the reputable providers of loans also check the creditworthiness of their customers in order to minimize their default risk. So if you no longer have a credit rating, you will not be granted a credit bureau-free loan from trustworthy providers.
Shuffle-free loans for everyone?
In principle, proof of income is sufficient to apply for a credit bureau-free loan. Other collateral is usually not necessary, but can lower the interest rate. But since the providers of credit bureaufreien loans to check the creditworthiness of their customers, there are difficulties for individual groups of people:
- Self-employed and freelancers: Those who have recently started a self-employed activity will also not receive a credit bureau-free loan. As a rule, the providers expect that the self-employment has been carried out successfully for at least three years. Those who have not been active for so long can be granted credit free by providing a guarantor.
- Retirees: Here, the prospects of obtaining a credit bureau-free loan are generally good only up to a certain age, for example for early retirees.
- Wage replacement recipients and housewives: Reputable providers of credit bureau-free loans generally do not grant loans to these groups of persons as there is no sufficient disposable income or, as in the case of Hartz IV, sufficient income above the attachment-free framework.
The approval of credit intermediaries is less stringent than that of financial intermediaries. There are also some dubious providers on the market. Reliable are the foreign subsidiaries of German banks. Many credit intermediaries also work with banks in neighboring countries.
Signs for dubious providers are the demand of up-front fees by cash on delivery (reputable providers receive their commission from the lender), express fees for faster processing, home visits, expensive Beratungshotlines, the sale of unnecessary additional products such as insurance, or even offering financial reorganization or even bankruptcy counseling (the only may be carried out by auditees).
Since the providers without credit bureau information take a greater risk in the credit assessment, credit bureau-free loans are generally more expensive than those with a credit bureau clause. The difference can quickly amount to several hundred euros, even with short maturities, since the difference between the current market rate of interest and that for non-schief loans is several percentage points.
The Internet makes comparison between different providers and balancing the costs easy. Of course, the search for “credit-free” alone is an indication for the provider that the customer probably has a lower credit rating – but this is not an exclusion criterion for the grant. It merely increases the cost of debt-free loans so that providers can hedge their higher risk. The often compulsory remaining debt insurance makes a debt-free loan more expensive. Beware of providers who indicate the APR per month – because at first glance, it covers up very high annual interest rates.
In general, however, customers who can not prove their creditworthiness do not receive loans free of debt. Customers have a higher degree of individual responsibility than when consulting a traditional bank. Ultimately, he is responsible for calculating his disposable income and the monthly sustainable loan installment. Calculating the monthly expenditure artificially small, is not helpful because the providers perform a plausibility check.
Choosing a reliable and reputable provider of non-scholarly loans is important – according to estimates by Stiftung Warentest, about four hundred thousand people are victims of bad credit providers each year with a financial loss of an average of € 380 (for example, for upfront payments without a loan being granted).
School-free loans are not always the best solution
Even if a loan can be a good solution without any problems: If several banks have rejected the loan application, this can be a warning sign. The applicant may assess his personal situation incorrectly and would only move further into the debt trap with a debt-free loan. In such cases, a debt counseling or a private bankruptcy may be the better way out.
A debt counseling service at the regional counseling centers (operated by the Arbeiterwohlfahrt or the Caritas, for example) is usually free of charge and analyzes the financial situation with the consumer and negotiates with creditors. If you come to the conclusion that insolvency is the best solution, they also advise you. After a few years of financial “good behavior” is at the end then the exemption from debt.