If you are planning major purchases, you often want to implement them with a loan. The banks reject consumers who have bad credit and thus also bad credit ratings. The credit risk is too high for them. Especially when the Credit Bureau file is noticeable, such as reminded bills, canceled loans, affidavits or even bankruptcies.
These are all rejection criteria that are at the forefront of banks. Sometimes an unpaid mobile phone bill is enough to make a negative entry. But there are also opportunities for borrowing for this clientele. The financial market offers a Good loan without Credit Bureau entry to those who have negative Credit Bureau.
Good credit without Credit Bureau entry
Many Good banks offer a loan to German loan seekers, a loan without Credit Bureau, and this type of loan can also offer the best conditions. The Good loan without Credit Bureau entry is usually applied for by a German bank from a Good bank. However, these loans have a bitter aftertaste for many consumers. One often reads about dubious credit agencies that rip off their customers but do nothing for it. A reputable credit broker will only charge his commission if the loan approval is positive.
In addition, the loan amount, the term, the installment amount and the interest rate should be set out in writing before the loan is taken out. Anyone who is fit online can also apply for a loan directly from the lending bank. With this form of credit request, there are no agency fees. The borrower does all the work independently. When looking for a credit broker, care should be taken to ensure that no unwanted home visits are billed.
Telephone advice should also be free of charge. The dispatch of the contract documents should only be calculated once the loan approval has been given. If one imagines that some credit intermediaries charge an agency fee that is between 100 and 600 USD and does not bend a finger for it, one can speak of a criminal act.
Even if the advertising loudly and much advertises the Credit Bureau-free loans, not all borrowers get a Good loan without Credit Bureau entry. First, the loan amounts are limited. There are loan amounts ranging from 3,500 USD to a maximum of 5,000 USD depending on the credit rating. Since the lending bank wants to have their borrowed money back, they hold back on the amount of money. For a Good loan without Credit Bureau entry, a minimum income of USD 1,070 and USD 1,600 is required.
This income is provided by the intermediaries as security in the event of a loan default, even though Credit Bureau does not check the creditworthiness. Since these loans are mostly covered by income, cession of wages is required. If there is a credit default, the attachable part of the salary is attached. In addition, a permanent job, just like at the German bank, is required.
Unemployed, self-employed or students are excluded from Good credit without Credit Bureau entry. The unemployed receive unemployment benefit that is a government allowance and therefore cannot be seized, the self-employed have an unreliable income, and for retirees the age limit is a barrier to lending.
Option to Choose
The application is easy. An online form must be filled in and sent to the credit broker with the appropriate details. The further credit procedure is usually regulated in an automatic procedure. However, a borrower has to dig deep into his pocket for a Good loan without Credit Bureau entry at the interest rate level. Effective interest rates of 11.30 to 25.5% are taken into account, which is higher than the interest rate the banks have for overpriced overdraft.
Customers who do not receive a normal loan due to their poor credit rating should consider their financial situation. It is often high debts and the unreliable repayment of outstanding bills that deny credit to reputable banks. Anyone who is in debt distress should first go to the debt advice centers and seek detailed advice.
Sometimes this form of credit is also taken up by solvent consumers. If larger financial projects are planned in the near future and the Credit Bureau should be clean, then creditworthy consumers will also take a Good loan without Credit Bureau entry. The bank is not informed about this loan and the customer receives the best conditions for his project. However, you should think twice when an interest rate of 25.5% comes.
But Good credit shouldn’t just be demonized. If there is really an urgent need for money and the conditions are moderate, then this loan can be the solution.