Loans without Credit Bureau information are often advertised on the Internet, via print media and on television. For many who currently have problems with their creditworthiness or liquidity, a credit without a credit check at Credit Bureau appears to be a way out of overcoming existing payment difficulties. But be careful!
Meaning of the Credit Bureau information
Credit Bureau information is a standard element of credit checks for lenders in Germany. It provides information about existing bank account details, loan and leasing contracts of a person as well as any negative characteristics regarding payment behavior – e.g. an affidavit, personal bankruptcy, the opening of a garnishment protection account or open claims despite dunning procedures. In addition to the Credit Bureau information, the credit check also covers other areas such as income and assets or collateral. If Credit Bureau information is negative, credit institutions, online and direct banks usually reject credit inquiries.
Risks for loans without Credit Bureau information
Credit Bureau-free loans in Germany are practically only offered by credit intermediaries – often via the Internet. In some cases, they rely on loans from Swiss banks that specialize in this market segment. The market for credit intermediaries themselves is non-transparent, and many dubious intermediaries are also active here. For credit offers without Credit Bureau information, one should therefore check the terms and conditions of the contract particularly carefully. This is particularly important to note:
- What conditions (interest, fees, contractual regulations) apply to the loan without a credit check at Credit Bureau? As a rule, the effective interest rates are likely to be significantly above the market level.
- Do you have to make advance financial payments before lending? Dubious intermediaries are often not interested in lending at all, but earn from upfront fees.
- Is the lending linked to the conclusion of other financial products – insurance, shareholdings, building loan contracts, etc. – or the use of other services? The loan often serves only as an ‘attractant’ for further financial service contracts.
Even serious credit intermediaries do not do without a credit rating for Credit Bureau-free loans. For example, proof of a regular earned income is usually necessary or guarantors with perfect creditworthiness must be named.
Alternatives to credit without Credit Bureau information
In many cases, loans without Credit Bureau information are requested from an acute financial emergency. In any case, you should check in advance whether debt relief is not possible without a loan. Debt counseling offers assistance here.