Whether moving, a new car or large purchases - quite a few citizens rely on a loan as a “financial injection” for such situations. Many consumers know that Credit Bureau is playing a part in lending and that the loan can be refused if there are too many financial obligations. The opinion quickly emerged that a loan could not be concluded as soon as it was registered with Credit Bureau. A loan without Credit Bureau is possible in many circumstances. In the following we will show you what the loan without Credit Bureau is all about and how you can get a fairly financed loan even with an unfavorable Credit Bureau entry.
Credit without Credit Bureau - what is it anyway?
Credit Bureau is a private company in which a large number of Germans are registered with their financial obligations. The personal Credit Bureau entry not only includes loans, but also other financial products, from checking accounts to cell phone contracts. The so-called Credit Bureau scoring is determined on the basis of these obligations at the request of a credit institution. This gives the bank that is to grant the loan more information about the applicant's financial situation. On this basis, she can decide whether to grant the loan or not.
In the case of a loan without Credit Bureau, the applicant does not allow the potential lender to have a look at his own Credit Bureau entry. This gives him only a rough insight into how the prospect's financial situation is. There is therefore a greater risk that the repayment of the loan will not take place as agreed. Therefore, higher repayment interest is often required to offset this risk. With a clever comparison of the loan conditions, however, a good and cheap loan without Credit Bureau can still be concluded.
Interesting facts about Credit Bureau and Credit Bureau scoring
Credit Bureau is a private credit agency that operates exclusively in the Federal Republic of Germany. More than 80% of Germans have an entry here, with personal commitments and financial commitments and credit lines for financial products. Contrary to popular belief, Credit Bureau not only records when an installment loan or similar loan is taken out. Additional entries at Credit Bureau can include the following:
- Current accounts (with a linked overdraft facility)
- Contracts (e.g. smartphone, landline)
- credit cards
- Mail order customer accounts
For many of these entries, Germans do not even know that they will make an entry at Credit Bureau.1 In principle, it is possible to send a private request to the Credit Bureau and thereby learn what your own entry looks like explicitly. On this basis, you can decide whether a loan without Credit Bureau is worthwhile or whether you would like to have Credit Bureau scoring obtained by the potential lender.
How is the Credit Bureau scoring determined?
If a bank makes an inquiry to Credit Bureau, it does not receive a complete and detailed insight into your Credit Bureau entry. Instead, the Credit Bureau sends her a score between 1 and 100. This value indicates the percentage probability that the loan will be repaid safely. A high Credit Bureau score is therefore in the interest of the customer in order to increase the chance of being granted a loan and to obtain favorable repayment terms.
In addition to the score value, other values are transmitted, for example a ranking in letters between "A" and "P". "A" represents the best rating. Since banks and credit institutions can also send other service providers to Credit Bureau, different forms of ranking are preferred depending on the company.
How does Credit Bureau scoring affect lending?
How a lender deals with Credit Bureau's scoring is handled differently. If a loan is offered without Credit Bureau, the Credit Bureau scoring is not looked at in the first place and the loan is granted according to other standards. There are also credit-independent loans: These are used to set a fixed repayment rate for all loan offers. The Credit Bureau scoring then only plays a role, namely whether the loan is granted at all or not.
The most common type of lending is credit-dependent. In this case, the Credit Bureau score determined flows directly into the repayment interest that the bank offers you when lending. For customers, the best possible Credit Bureau scoring is important so that you receive an attractive interest rate for your loan.
Myth or fact: Is a loan without Credit Bureau available at all?
If you are interested in a loan, there are various ways to take out a loan without Credit Bureau. One option is to take out a loan from a bank abroad. Credit Bureau only collects data on citizens in the Federal Republic and only complies with inquiries from the Federal Republic. For a foreign bank, Credit Bureau is irrelevant, here the creditworthiness of a customer is assessed according to other standards and the loan is granted.
A loan without Credit Bureau is also generally available from German banks. Some accommodate their customers by not checking their creditworthiness. With such offers, however, you have to expect higher loan interest rates than if you would allow a look into your Credit Bureau entry. Since a poor credit rating also drives up the interest on the loan, such a loan can still be worthwhile without Credit Bureau.
Ultimately, you can think about a personal loan. For years now, this has increasingly been granted via the Internet, for example also through a pool of donors instead of a single bank. Platforms of this type carry out a rough check of the Credit Bureau entry, but there is no classic Credit Bureau check as with a full-fledged financial institution. If you need a loan without Credit Bureau here, you only have to convince one or more financiers of your solvency.
On what terms can I get loans without Credit Bureau?
If you take out a loan without Credit Bureau, your options in loan structuring are limited. Most banks only grant the loan in a manageable range, often up to a maximum of 5,000 or 7,500 dollars. In this way, the lender prevents the financial losses from becoming too large if you cannot repay the loan. If you insist on a loan without Credit Bureau, it should tend to be a small loan for everyday purchases or the partial financing of a car.
Basically, a loan without Credit Bureau can be characterized by the following properties compared to classic lending:
- lower loan amount than usual
- higher debit interest / effective annual interest
- shorter terms of the loan agreement
- rare opportunity for special repayments
The criteria mentioned cannot be seen as a blanket for every loan without Credit Bureau. Large banks abroad or private donors can deviate from the conditions and make the loan conclusion all the more attractive. For this reason, a comparison of different providers is advisable. so that the loan meets your own wishes and does not have to be financed unnecessarily expensive.
Is it a serious loan offer?
Regarding the seriousness of the loan, you should find out more about the reputation of the provider in addition to the terms of the loan. With a bank or a credit institution from Germany or Europe, you can be sure that it is subject to national or international banking supervision. The lending is therefore absolutely serious and is particularly interesting as a loan without Credit Bureau.
You should exercise greater caution if you take out the loan without Credit Bureau from a private investor or on an internet platform. There are very reputable and well-known platforms, as well as black sheep. If you want to get a loan without Credit Bureau in this way, get additional information such as reviews or customer reviews in advance. On this basis, you can consider whether you want to make a loan request or start looking for something else.
Are there valid reasons for refusing the loan?
Even with a reputable credit institution that offers you a loan without Credit Bureau, there can be a rejection. Even without a Credit Bureau entry, the potential lender will be able to get the impression that you are not creditworthy. An important yardstick is, for example, whether an injunction against you is currently underway or whether you are subject to private bankruptcy. This is requested when applying for a loan regardless of the possible insight into the Credit Bureau entry and should be answered truthfully.
Conditions for a loan without Credit Bureau - which are serious, which are not?
Just because you insist on a loan without Credit Bureau, you should not accept any conditions for lending. Some financial institutions will take advantage of the need of loan seekers and set very high loan interest rates. You should assume a dubious offer if the loan effectively exceeds a repayment rate of 15% pa
Limits in the loan amount are common, with each bank setting its own limits here. A loan offer that can only be concluded up to 1,000 or 2,000 dollars is therefore still serious. The lender is particularly cautious here and does not want to take too much risk with unsecured lending.
Regardless of individual numbers and values, you should pay particular attention to the reliability of the lender itself: Certified banks at home and abroad as well as positively rated credit platforms with fair dealings with customers and lenders are the right partner if you want a loan without Credit Bureau.
The importance of loan interest on loans without Credit Bureau
As with conventional loans, most customers will pay attention to the lowest possible loan interest. Of course, you shouldn't have to pay unnecessarily high repayments, but there are other standards for loans without Credit Bureau.
Keep in mind that a loan without a Credit Bureau abroad is often only granted through small loan amounts in the four-digit range. If there are deviations in the repayment interest, this has less of an impact than with large loan amounts due to the manageable loan amount. The amount of the interest 2 remains of course an important yardstick for a good loan offer. Even more important for foreign loans without Credit Bureau, however, is how well-known the credit institution is and whether it has good ratings. In any case, you should obtain this before signing the loan agreement. A reputable broker will be happy to name the respective foreign financial partner.
Is it worth comparing different loan offers?
Due to the variety of possibilities to take out a loan without Credit Bureau, a comparison before taking out a loan is advisable. This applies particularly to loan offers from abroad. Each country will set its own framework for lending, which will affect the lending rates offered and other terms of the loan agreement.
If you are interested in a loan from abroad, you do not have to explicitly submit the request to the foreign banks yourself. Instead, you will often find branches or brokers in Germany that you can contact if you are interested in a foreign loan. Make sure that a foreign loan is really brokered and that it is not the German subsidiary of a foreign bank.
The comparison of different types of lending should also be considered. For example, you can make the request for a foreign loan and at the same time find out about the conditions of an online credit platform from Germany. It cannot be said generally which type of lending is the better choice.
How willing are credit providers to talk about individual terms?
If you want a loan without Credit Bureau and fear bad conditions due to your creditworthiness, it is worth talking to the lender directly. You can use this to describe the individual financial situation and show that some financial obligations were long ago. Personal trust and a look at the respective situation of the loan seeker play an essential role, especially for online donor platforms.
Advantages and disadvantages of a loan without Credit Bureau entry
For many people in Germany, taking out a loan without Credit Bureau is the only way to gain new financial freedoms. Whether as a foreign loan or through private donors via an online platform - the loan without Credit Bureau offers a number of advantages:
- no further entry of the loan at Credit Bureau
- non-binding and simple inquiries
- easy conclusion of foreign loans through intermediaries
- fair conditions after a loan comparison
- discreet brokerage without affecting your credit rating
How good or bad the conditions for a loan without Credit Bureau are depends largely on your credit needs and the respective lender. Therefore, think about where you would like to apply for your loan without Credit Bureau and which credit institution seems particularly appealing and trustworthy for you.
Some loans without Credit Bureau have these disadvantages
As with all financial products, there are also disadvantages to credit without Credit Bureau. The main reasons to take a critical look at the loan without Credit Bureau include:
- limited loan amount (often a maximum of 7,500 dollars)
- Inquiries are often associated with the presumption of poor creditworthiness
- “Black sheep” among credit intermediaries and funders
- depending on the loan, the lender is unclear
Many of these points are not noticed when you first request a loan without a Credit Bureau entry. For example, intermediaries promise an attractive foreign loan, but the specific bank has long been unclear. Even with an online platform for personal loans, one or more donors are often unknown.
Not to be forgotten is the impression you leave when applying for a loan without Credit Bureau. Most banks and lenders know that the option is primarily used by customers with no major credit rating. Otherwise, the request would normally be made to a traditional financial institution without the Credit Bureau entry causing any problems.
How do I apply for a loan?
If you opt for a foreign loan, look for a mediator in Germany for serious lending. In this case, the application for the loan is made in the same way as with an ordinary bank, with a description of your personal financing wishes. Please note: Just because it is a loan without Credit Bureau, you will still have to provide proof of your credit rating. This can be done, for example, through regular salary statements from the past few months.
The application for the loan without Credit Bureau is easy via the Internet. This applies to foreign loan brokers as well as to credit brokerage platforms. With the latter, you will need to be more proactive to find funders for your project. Describe here in detail how you want to use the money and point out your collateral.
Is taking out a loan abroad the best choice for a loan without Credit Bureau?
There are several ways to get a credit without Credit Bureau, in most cases the most sensible way is to apply for it abroad. With these loans, you have the security of knowing that they are being issued by a reputable and certified bank. When lending through an intermediary, be sure to find out the lender for your loan without Credit Bureau. If you have checked the credit intermediary beforehand, you will gain the greatest trust from the start and in any case you will get a serious loan without Credit Bureau.
Why the comparison with a loan without Credit Bureau is worthwhile
In Germany you can work with a variety of intermediaries if you want to take out a loan abroad without Credit Bureau. Each intermediary will have access to its own network of foreign banks that offer you different terms for your loan without Credit Bureau.
There are also differences in the platforms for lending by private donors. This applies to the assessment of your creditworthiness when presenting it to donors, as well as the prospect of a quick and serious mediation of the money. In all cases, it makes sense to compare the different options and providers. This will not only make your loan serious without Credit Bureau, it can also be taken out at the best possible conditions.
What to look for when comparing reputable providers
If you are given the name of the foreign bank for the loan without Credit Bureau, you can do your own research at the financial institution. Find out if they have a good reputation in their home country and are not the only ones who specialize in lending to foreign customers. Test reports and reputable evaluations are easy to call up on the Internet and will also help you.
Important criteria when you want to compare the individual lenders are:
- Age and experience of the credit institution
- Reputation in the industry
- Framework for general lending
- Customer testimonials and opinions on the Internet
- The individually prepared offer
The comparison is all the easier if you make several inquiries on the Credit Bureau-free loan and can view different offers with individual conditions. Be alert when a loan offer sets itself apart from the competition. In this case, a dubious company in the industry may want to lure you with unusually favorable loan terms. If you suspect anything, google the company name immediately!
When things have to go fast: the instant loan without Credit Bureau as a solution?
Who hasn't been in a precarious position to need cash quickly ? A house bank usually takes more than a week to grant a loan - and checks the personal situation for a very long time. It can take up to two weeks before the loan is granted.
An instant or instant credit without Credit Bureau can offer quick help here. Lightning credits with instant approval and a payment within 24 hours are offered on the web. These offers mostly come from reputable providers. A Credit Bureau query for old and existing debts is then omitted because the lenders are located abroad - usually in Switzerland or Luxembourg. In addition, the new loan will not be noted at Credit Bureau.
The amount of the instant loans is roughly in the range of 500 to 7,500 dollars. You have to state the monthly income, and the credit institutions also require proof of income. This can be done through a bank statement or proof of earnings.
Foreign banks do not refer to the Credit Bureau data as they cannot see them; for this reason, the interest rates when repaying the lightning loan may be slightly higher. However, the processing fees are often lower. The online procedure for applying for a lightning credit without Credit Bureau entry is standardized and therefore requires little bureaucracy and fewer staff. This reduces the processing fees to almost zero.
Plus points for instant credit without Credit Bureau
An immediate acceptance can be made online within 15 minutes. The money is usually in the account within 24 - 48 hours. With the unscrupulous instant loan, there are fewer processing fees, but the interest on repayment can be higher.
If one looks at the advantages and disadvantages of the lightning loan without Credit Bureau, one can assume that a serious loan offer can help customers extremely. However, a comparison of the offers should definitely take place before the loan contract is concluded. Take a look at our topic and provider overview in advance to find reputable providers.
Conclusion: credit without Credit Bureau - mostly serious and financially attractive
The loan without Credit Bureau still has a bad reputation in Germany. Many consumers think that they cannot even take out a Credit Bureau-free loan or that their creditworthiness is not perfect. In practice, the opposite is the case: a loan without Credit Bureau is possible and can be taken out seriously on good terms.
If you have the willingness to take out a loan from a foreign bank, it will be particularly easy and stress-free for you to get a loan without Credit Bureau. Use the direct contact to an intermediary for foreign loans and calmly check the seriousness of the intermediary and the proposed bank as the lender.
Alternatively, it is worth thinking about financing options such as online platforms with private donors. Your Credit Bureau entry is not checked here either. How serious the lenders and the terms of the loan for the loan without Credit Bureau are, must be checked here on a larger scale. It is important to take a look at the potential donors in addition to the reputation of the platform. B. learn how often they have already invested money in different projects.
All in all, the loan can be financed reliably and attractively without Credit Bureau. However, never forget that you must continue to have an adequate credit rating for the lending and that you must provide security. The loan without Credit Bureau is therefore not a license to get a loan under all conceivable conditions.
Important: Alone by comparing the appropriate loan without Credit Bureau
Our final tip for a loan without Credit Bureau: Use the opportunity for an independent and meaningful comparison. As attractive as some loan offers may seem - only a comparison shows whether you really should sign a loan contract from the relevant provider. Incidentally, the serious impression does not only apply to the favorable repayment terms. It is also important to ensure that it is a well-known financial partner who has processed many loans on fair terms in the past. If this is the case and you are satisfied with a manageable loan amount, the way to a loan without Credit Bureau will be paved.