Credit with credit bureau| Take out a loan despite negative creditworthiness

Credit Bureau is one of the best-known institutions in Germany when it comes to banking, creditworthiness and lending. The Credit Bureau database lists every loan that is granted by banks within Germany, as well as late or outstanding payments of loans and financing.

If there is such a delay in payment, this entry often remains in the Credit Bureau for a long time and significantly overshadows all required loan applications. Because a loan with Credit Bureau entry is much more difficult to obtain than would be the case without such an entry. Especially if the creditworthiness criteria were just enough to get a loan, such an entry can quickly destroy the chances of a loan. Nevertheless, there are alternatives if a credit with a Credit Bureau entry is required.

Credit with Credit Bureau – also through banks and credit institutions in Germany

Credit with Credit Bureau - also through banks and credit institutions in Germany

German credit institutions also grant loans for negative Credit Bureau entries if the borrower can meet various other criteria. A good to very good income in a correspondingly secure position, for example, can often be decisive for lending. But even without such a financial cushion, loans can be granted through collateral.

Standard bank collateral is investments in value and money that are not subject to major fluctuations in their value and that can be easily converted by the banks into a monetary value that corresponds to a large part of the loan amount.

The following types of collateral are generally accepted by all banks and credit institutions: real estate, real estate, long-term investments and guarantees. In the case of financial investments, real estate and real estate, the bank is entered in the existing contracts or land register and can release these collateral in the event of a default by the borrower in order to obtain the money required.

The guarantee as security

The guarantee as security

A special form of security is simply a guarantee. This is the only security that does not require existing own funds. In the case of a guarantee, the borrower has to present a guarantor who is responsible for the fulfillment of the loan with his private, personal income and assets. Above all, this means that if the borrower defaults, the guarantor can be recourse and must pay the amounts due out of his own pocket.

For this reason, a guarantor must meet all the criteria for a normal bank loan. The guarantor is therefore liable for the fulfillment of the loan with his integrity. Such a guarantor usually comes from the closest circle of friends or from the borrower’s own family. The sums that can be covered by such a guarantee mainly depend on the financial situation of the guarantor and no longer solely on the creditworthiness of the borrower. A loan can also be realized with a Credit Bureau entry.

Credit with Credit Bureau entry – no problem abroad

Credit with Credit Bureau entry - no problem abroad

An alternative to compensate for the disadvantages of a Credit Bureau entry is to go to a foreign bank. Since these banks are not affiliated with Credit Bureau and therefore do not check them for entries by their customers, a credit with a Credit Bureau entry can also be approved via such a bank if the creditworthiness is appropriate. The banks from Austria and Switzerland in particular have proven their worth, as they belong to the same language area and communication with these institutes is made significantly easier.

Loan with Credit Bureau from the Internet

Loan with Credit Bureau from the Internet

Since all credit institutions can also be reached via the Internet, the right loan can also be found in this way. The best conditions for the borrower can be selected from all the different banking houses using a comparison calculator or a personal search. The application for the loan can also be initiated on the banks’ website. All data of the potential borrower are recorded and a provisional assessment of their credit opportunities is calculated.

If the creditworthiness is given, the borrower can receive mail from the credit institution after a few working days. The mailing contains the final loan application, which should be sent back to the bank together with all required documents. After a thorough review of the documents, the loan will be decided. If approved, the requested amount will be available to the borrower within a few days. Such a loan is neither entered in the Credit Bureau, nor are any existing Credit Bureau entries in the loan application and the credit decision.

Loan with Credit Bureau – Beware of fraudsters

Loan with Credit Bureau - Beware of fraudsters

In addition to the many reputable credit intermediaries on the Internet who offer loans without Credit Bureau information, there are also some dubious providers. These brokers sometimes require various forms of advance payment from their customers to enable the promised loan to be granted, which a reputable credit broker would not do. With reputable providers, the applicant does not incur any costs in advance and during the examination of a loan application. Here it is appropriate to study the offers carefully.

Credit with Credit Bureau – from private

Credit with Credit Bureau - from private

Probably the easiest way to bypass Credit Bureau is to take out a personal loan. A distinction must be made between two variants.

On the one hand there is the way to get a personal loan from an unknown lender via one of the many brokerage websites on the Internet, and on the other hand the way is through the private environment of the borrower. When looking for a loan via a brokerage platform, however, the creditworthiness of the customer is also thoroughly checked in order to increase the security of everyone involved. Only after checking the creditworthiness can the borrower search for a lender via such a page.

Since the conditions of the loan with Credit Bureau can be freely chosen by private individuals, the borrower must offer the loan on such attractive terms that a lender is willing to accept the loan application. However, this can take some time, so that this way of getting a loan without Credit Bureau query can usually not be used, especially when there is an acute and urgent financial need.

Loans with Credit Bureau through friends and family

Loans with Credit Bureau through friends and family

Alternatively, the borrower can also search for a private lender. This has the particular advantage that the desired loan can be approved quickly and often without much effort and paid. Credit Bureau also plays no role in such a loan, since these loans are generally based primarily on mutual trust. Ideally, however, the two parties conclude their own loan agreement, which briefly includes the terms of the loan. This increases security for everyone involved.

It shows that a loan without Credit Bureau can be made possible in various ways. The choice of funds depends primarily on the particular situation of the borrower and the amount required. The larger the sum, the more difficult it is to find a suitable private provider. With small sums and urgent financial needs, however, the route via private donors is often a clear advantage.