For many older people, the pension is just enough to cover their daily needs. For more wishes, for example a new car, furniture, a nice holiday, etc., there is usually no money left because the pension is used up at the end of the month.
But retirees also have wishes and in order to fulfill them there is the option of taking out a loan. In some cases, the financial problems caused a negative entry in the Credit Bureau file. In this case, only a Credit Bureau-free loan will help retirees, but approval is usually difficult. This post explains the possibilities.
Possibilities – Credit Bureau-free loan for pensioners
Until recently, the banks did not want to grant loans to pensioners. Although these can demonstrate regular income, the banks did not want to approve the loan due to their age. This has changed somewhat over time, but the requirements are still strict.
The bank should already know the customer and be considered reliable. In this case, the Credit Bureau may also be dispensed with. Of course, there are some rules for a Credit Bureau-free loan for retirees, because the banks want to be sure that the money will be repaid.
Opportunities for difficult loan structuring
If a loan request is unsuccessful, another option may be to pledge. For the bank, this significantly reduces the risk of a loan default, because if the borrower fails due to payment difficulties, the guarantor is obliged to repay the installments. The bank therefore has two people to whom it can fall back. Other collateral also increases the chance that a Credit Bureau-free loan will be granted to pensioners. A loan can also be secured with a capital-building life insurance policy or real estate.
In particular, when applying for a Credit Bureau-free loan for pensioners, the banks in Germany generally wave away immediately, since they are required by law to obtain Credit Bureau information. This is primarily to protect the borrower from falling into a debt trap. It can be helpful to apply for a loan from a foreign bank. Credit Bureau usually plays a subordinate role at these banks. It is more important to have a regular income. The extent to which a loan is possible must be inquired individually, but a comparison should always be made.
Beware of dubious offers
There are numerous websites on the Internet where you can compare the various offers. This is very important because not all providers are reputable and lurk with high costs. The comparison is very simple, quick, free of charge and without obligation. After all relevant data has been entered, the various providers are listed and a fair, Credit Bureau-free loan for pensioners with favorable conditions can be selected.
Some providers promise a loan and are ultimately only looking to take out unnecessary insurance. In principle, such offers should not be dealt with. The same applies if a credit broker has been commissioned and they want to have money beforehand. In principle, no costs are incurred before the loan agreement is concluded. If this is the case, it can be assumed that it is a dubious credit broker.
Anyone who has not been granted a loan at the local bank or from a direct bank on the Internet can use the last option of a personal loan. First, you can ask in the private environment whether someone is willing to lend this amount. In the best case, this happens without interest and without red tape within the family. However, for reasons of order, a contract should also be drawn up to avoid disputes. The loan amount, installments and any interest should be recorded in the contract.
Many a friendship or family has broken up for financial reasons. This cannot happen with a contract because it protects both sides. If there is no lender in the private environment, there is now also the possibility on the Internet that a private Credit Bureau-free loan for pensioners can be applied for. On many websites, private individuals now offer their money to help people in need and, of course, to generate returns in this way. As with any other loan, it is important to check the offers carefully in order to obtain a cheap loan and not to fall into the cost trap.