Banks in Germany have clear rules when it comes to lending. There the income is checked, the Credit Bureau and the employment. If a customer can fulfill these three approval criteria, his credit request will be fulfilled. But often loan seekers have negative entries in the Credit Bureau, which nullifies a conventional loan. There is a Credit Bureau-free loan from abroad for these customers.
Credit Bureau-free credit from abroad – the conditions
But sometimes it is not just the negative entries that do not fulfill a credit request. Income is often too low or the loan seeker has a temporary employment contract. These circumstances make it difficult to borrow. If the customer knows in advance, if he has a temporary employment contract or an income that does not have a garnishment limit, he will not come for a Credit Bureau-free loan from abroad. With this constellation, he should be able to name a second borrower or a guarantor so that he can get a loan from a German bank.
A Credit Bureau-free loan from abroad is on the Internet and is heavily advertised. The loan is called Swiss credit and has been on the credit market for many years. When looking for a loan, the loan seeker should know that the more compact and lurid the advertising for these loans is, the more the customer has to be careful not to get to a dubious credit broker. The customer can recognize this from the fact that a dubious credit broker requests prepayment or prepayment before the loan approval. In general, an intermediary may only calculate the commission due to him after the loan approval. In many cases, the commission comes from the banks and the customer is included in the loan agreement.
However, very few contacts would come about for a Credit Bureau-free loan from abroad. Often these banks have not provided a loan application, so a credit intermediary has to do it. In general, a credit broker is not to be demonized, because even in particularly difficult cases, he can still provide his customer with an acceptable loan. A Credit Bureau-free loan from abroad now almost exclusively comes from Liechtenstein. Until 2009 they came from Switzerland. But due to internal bank events, these banks were prohibited from granting German loans.
Lite Bank has been doing this since 2010. It has adopted the same terms and conditions for this type of loan. In general, these loans are awarded so that Credit Bureau is not queried, and the loan is not entered. The loan seeker must provide permanent employment with a corresponding income. There are three loan amounts that are approved.
A Credit Bureau-free loan from abroad has the following conditions:
The $ 3,500 loan is repayable in 40 monthly installments at a rate of $ 105.15, the total loan amount is $ 4,206.00, the effective annual interest rate is 11.12%, which results in a fixed borrowing rate pa of 8.84% over the entire amount running time.
The USD 5,000 loan is repayable in 40 months at a rate of USD 150.20, the total loan amount is USD 6,008.00, the annual percentage rate is 11.11%, which results in a fixed borrowing rate of 8.83% pa over the whole Running time.
The $ 7,500 loan is also repayable in 40 months at a rate of $ 225.80, the total loan amount is $ 9,012.00, the effective annual interest rate is 11.11%, the committed borrowing rate pa 8.83% for the entire term.
Despite contrary opinions and so-called studies that a Credit Bureau-free loan from abroad is hardly approved, is not correct. If the loan seeker can meet the above information, he will also receive a loan from abroad. The customer only has to be careful when choosing the credit intermediary. The Credit Bureau-free loans are booming and with it so-called black sheep who want to enrich themselves from the financial hardship of loan seekers. This means that preliminary costs and prepayments are permitted, and the signing of dubious insurance contracts is also not legal.
The loan seeker should look for a loan broker who has years of experience in this area and who can do without lurid advertising. TÜV-certified agents can also be trusted. The customer submits his loan application to the intermediary, who will then make a preliminary loan approval based on the entered data and send the customer which documents are required to check the creditworthiness. Contrary to statements to the contrary, the creditworthiness is very well checked, only the Credit Bureau is left out.
If the customer has sent the necessary documents by post, he must first carry out the Postident procedure, which is only a recognition of his person. If the bank has found the documents to be good, a final loan approval will be given. The whole procedure takes up to 8-9 working days.
The customer should also know that the Credit Bureau will not be viewed, but the public debtor directory will. If there are entries such as bankruptcies, foreclosures, oaths of disclosure or attachments, the foreign bank will not approve any loans either. After the loan approval, the bank will instruct the money within 24 hours.
In times of limited employment contracts and unemployment, many people are in financial need. There are more debtors in Germany than ever before. The number of customers with low credit ratings is increasing more and more. The rush for the Credit Bureau-free loan from abroad proves this. The regulations of banks have also tightened, it is no longer so easy to take out a loan.
If you are in need of money and need short-term funds, but the Credit Bureau is bad, the customer could possibly have a disposition set up in a conversation with the bank or increase the existing one. If an urgent invoice has to be paid or an urgent repair has to be carried out, the overdraft facility could be the solution. However, it should only be used for a short period of time because it is expensive. Here, the interest rate is also in the double-digit range. There are banks that demand a full 15% for the overdraft facility. If the customer overdraws the granted credit line, the bank charges another 5%.