Loan without credit bureau information and proof of income

The starting point for a loan without Credit Bureau information and proof of income is extremely poor. For a Credit Bureau-free loan, people are interested who have abnormalities in their Credit Bureau file and who no longer receive credit from normal German banks. The criteria for awarding banks are a clean Credit Bureau and a sufficiently high income.

Before each loan approval, banks conduct a Credit Bureau query. This shows the customer’s creditworthiness. If negative characteristics are entered, this suggests that there could be difficulties with the repayment of the loan. Even if a proof of income cannot be presented, the loan seeker does not necessarily have to have no income. This is often the case with self-employed or freelancers who do not have a regular income.

The financial situation may be stable, but cannot be proven using conventional means. For a self-employed person, it is advisable to include the BWA or the income tax assessment. For all others, a loan without Credit Bureau information and proof of income applies with other credit protection.

The credit without Credit Bureau information and proof of income

The credit without Credit Bureau information and proof of income

If the loan seeker has been rejected when requesting a loan because there is a bad credit and no proof of income can be presented, he must switch to other credit protection systems. This can be a property or a piece of land, a capital-building life insurance policy, high-quality property such as antiques or gold. The naming of a guarantor also increases the credit opportunities for a loan without Credit Bureau information and proof of income.

To substantiate the loan, rental income or income from leases can also be specified. But for a good loan, a guarantor is the best starting point for a loan without Credit Bureau information and proof of income. A guarantor significantly reduces the risk of default. In this case, the guarantor is liable for a credit or payment default.

The guarantee

The guarantee

But to guarantee someone else is more than risky. The borrower can still have an excellent credit rating, a guarantee remains a risk. A surety can ruin a guarantor by putting his signature under the loan agreement without much thought. According to the Federal Court of Justice, a guarantee is only effective if the guarantor can easily pay it in the event of a loan default. If he gets into financial difficulties himself and can no longer pay his own obligations, the guarantee is not valid.

Anyone who signs a guarantee should also make claims themselves. For example, the loan should help improve living conditions and get the borrower out of a financial problem. In addition, the guarantor should insist that he be given insight into the borrower’s finances. This is the only way to ensure that, for example, a rate that has not been paid is not mentioned due to false shame. If the loan is canceled because of this, it becomes really expensive for the guarantor. The easiest way to keep control of your guarantee is to have the loan debited from your current account. In this case, the borrower pays the guarantor.

The pawnshop

 

If no guarantor can be named, the possibility of a pledge remains. In the case of a loan without Credit Bureau information and proof of income, the value of the pledge will be the security for the loan. The pawnbroker, however, does not ask about the income situation and will not obtain any Credit Bureau information. He gives the sale value of the pledge, about half of the price mentioned corresponds to the mortgage lending value. Up to this value of the pledge, a loan will be possible without asking.

The co-applicant

The co-applicant

In addition to naming a guarantor, a co-applicant could also enter the loan agreement. In view of the tense situation, it should be considered whether the co-applicant is not alone applying for the loan from a normal bank. In this case, he could lend the loan to the loan seeker with a private contract and equal conditions. There is no additional risk, he would be in debt if the borrower could no longer pay his installments. However, the annual percentage rate would be significantly cheaper. A small loan of over 3,000 USD would then be available with 2.89% APR.

If you want to apply for a loan without Credit Bureau information and proof of income on your own responsibility, you can secure the loan with real assets or savings. In order for the approval to be obtained, the collateral should be considered relevant to the loan amount. A lender will recognize the collateral if it can serve as real protection and if the amount is sufficient.

Credit in difficult cases

A loan in difficult cases can mean a quick way out of a financial emergency, especially if further debts could accumulate from the financial bottleneck, for example due to overdraft interest or dunning costs. The loan that is taken out in difficult cases is usually an instant loan and is issued by various banks and lenders. The amount of the loan and the time it takes to process it depends largely on the situation of the borrower. Applying for and exempting a loan becomes particularly difficult for lenders and borrowers if they do not have the necessary collateral, regular income or a negative history. The aim here is to find a solution together or to look around for alternatives early on.

Negative entry in the Credit Bureau causes difficulties

Negative entry in the Credit Bureau causes difficulties

A difficult case usually arises when the borrower has a negative note in his Credit Bureau entry. These entries in the Credit Bureau are a critical point of criticism for banks and other lenders as to whether and to what extent a loan can be made possible. The entry in the Credit Bureau shows not only the reliability of the borrower, but also how he knew how to operate in the past and whether all bills were paid on time. Since it is inevitable for banks to pay the installments on time, a loan is available in difficult cases, especially if the Credit Bureau entry is not immaculate. However, other points, such as the borrower’s collateral, should it be a larger loan amount, or simply the lack of regular income, can lead to a difficult case in loan brokering.

If, as a borrower, the potential lenders classify you as a so-called difficult case after checking your own situation, you should already look for a new bank. Because difficult cases usually either do not receive the loan at all, or they get worse terms than a better rated borrower because the lenders try to compensate for the more difficult situation with a higher possible return. Theoretically, credit in difficult cases is not impossible at first, especially not if you have already been in contact with the bank you trust, for example because you have a current account with Selbiger. However, in difficult cases, a loan is always associated with a little more work than it would be with excellent creditworthiness and an impeccable Credit Bureau entry.

Credit in difficult cases is possible in many ways

Credit in difficult cases is possible in many ways

A loan in difficult cases can therefore come directly from the borrower, but also from the situation in which it is located. In any case, the borrower should act quickly and inform himself comprehensively about his options and the associated conditions. Otherwise there is not only a swirl of debts, which in turn cause additional costs, but also a future loss of your own creditworthiness, as well as the ranking within the Credit Bureau directory. If the borrower does not react quickly enough, a loan can soon become an impossible undertaking in difficult cases.