The focus of the lending is on a regular income and a flawless Credit Bureau. If these criteria are not given, the alternative is the loan without Credit Bureau and creditworthiness. What this type of loan is all about is explained below.
The financial bottleneck and the bad Credit Bureau
German banks have guidelines that state that lending is only granted with a positive Credit Bureau. The focus is also on a demonstrable high income. The Credit Bureau statement is a binding matter for regular banks as it shows the creditworthiness of the customer. Negative entries, be it just an unpaid mobile phone bill or department store bill, reduce creditworthiness and put a stop to a loan approval.
But in some life situations, despite the limited or nonexistent creditworthiness, a consumer needs funds. He does not need to include the house bank in his considerations, since it is bound by their guidelines. As an alternative, the loan without Credit Bureau and creditworthiness comes into question. Verifiable payslips cannot be provided, but other collateral must be provided to reduce the risk of insolvency.
The loan guarantee
For the loan approval for a loan without Credit Bureau and creditworthiness, other means of securing the loan than the income must be provided. If these are met, nothing stands in the way of a positive loan approval. The alternative means of securing credit are real estate such as a property, house or property, a loanable life insurance, securities or a solvent guarantor that can be included in the loan agreement as a co-applicant. Many loan seekers do not have collateral such as property or other valuables and are dependent on the naming of a guarantor.
A guarantor can be a creditworthy spouse, a relative or an acquaintance. It is important that this guarantor can prove his economic situation as positive. In the event of default by the borrower, he must be able to pay the loan or pay the installments. In addition, his financial situation must be so relaxed that he can easily co-finance the additional costs arising from the guarantee in addition to his own financial obligations.
This loan without Credit Bureau and creditworthiness can be applied for on the Internet via so-called credit agencies. These can arrange a loan without Credit Bureau and creditworthiness. However, a loan seeker should exercise caution when prepayment is required or when sums of money larger than credit are offered that do not require special security. Well-known providers on the Internet certainly grant serious loans without Credit Bureau and creditworthiness, but a loan comparison should be carried out before the promise to a provider. The various providers have large price ranges in terms of conditions, and since a Credit Bureau-free loan with no credit rating is generally more expensive than a regular loan, a cheaper and reputable provider should be selected.