Are you looking for an instant loan that is granted free of Credit Bureau? Then please do not believe everything that the advertising promises you. The article explains what to watch out for and under what conditions Credit Bureau-free loans are approved.
Instant credit Credit Bureaufrei – illusion or reality?
An instant loan that can be applied for without Credit Bureau is high on the wish list of many prospective creditors. Across Germany, around nine percent of all adult citizens have one or more negative Credit Bureau entries. Going to the bank, simply applying for an instant loan or taking advantage of a cheap online loan offer is not possible with a negative Credit Bureau. The only credit option seems to be the Credit Bureau-free loan from a reputable foreign bank. With a view to the advertising statements of the credit intermediaries, there is a large selection of different credit banks for Credit Bureau-free loans.
Those who trust advertising overlook two things: First, there can be no “real” instant credit if the creditworthiness is weak. The credit decision for an instant loan is made almost exclusively via the scoring value and the Credit Bureau information. (Simplified credit check procedure). The second misjudgment is to trust a large variety of offers.
All research indicates that only a single foreign bank can legally offer a loan without Credit Bureau in Germany. With this knowledge, advertising exaggerations can be exposed very quickly. In principle, it doesn’t matter which credit intermediary applies for this loan. It is also irrelevant whether an immediate loan is applied for without Credit Bureau or a loan without Credit Bureau or a Credit Bureau-free express loan. It is always the same loan and the same lender.
Regulations for Credit Bureau-free loan offers
The personal requirements that a prospective customer must have for a Credit Bureau-free credit solution primarily relate to the employment relationship. In principle, only employees who are employed have a chance of success. Contrary to normal lending, the employment relationship must exist for at least 12 months. Of course, it must not be limited (exception: time soldier) and not terminated.
The net income from work must also be significantly higher than the seizure allowance. The exact amount of income required depends on the living conditions and the amount of the loan applied for. To verify the information, the last two payslips and the associated bank statements must be submitted. The duration of employment can be proven on the income tax card of the previous year or on a payroll that is already 12 months old. The remuneration may neither be attached nor assigned to a creditor.
Special rules apply to soldiers and officials. A temporary soldier must be with the Bundeswehr for at least another year. A civil servant must submit a copy of his or her official appointment certificate.
In addition to the income check, the public debt register is also requested. There must be no entries. An instant loan that is advertised Credit Bureau-free despite EV proves itself as an advertising duck. Credit Bureau-free financing is secured solely through the assignment of income. A guarantor or co-applicant cannot improve creditworthiness. Some personal effort and time must be spent on the declaration of assignment. It has to be certified. A notary could be a contact point for authentication. The certification in the local citizens’ office is faster and cheaper.
Credit conditions for direct applications
Applying for an instant credit free of charge is possible via any credit broker or directly. The credit terms for a direct application to Lite bank from Liechtenstein, as of October 27, 2013, are listed below.
You can only apply for a loan without Credit Bureau in the amount of USD 3,500 or USD 5,000 net loan amount. For the credit option with 3,500 USD, a single applicant must prove at least a net income of 1,130 USD per month. An effective annual interest rate, which does not include external costs, of 11.62 percent is calculated. External costs can arise from certification, cash payment or application through a credit broker. The loan is repayable in 40 constant monthly installments of USD 105.95 each. A total of 4,238 USD will be repaid.
For a Credit Bureau-free loan of 5,000 USD, a single person must prove a net income of at least 1,600 USD. The annual percentage rate for this loan option, again without external costs, is 11.61 percent. This loan is also repaid in 40 constant monthly installments. The monthly rate is 151.35 USD. For 5,000 USD loan from Liechtenstein, 6,054 USD will be repaid.
Those who follow the advertising, apply for an instant credit without a Credit Bureau through a reputable credit broker, pay a little more. For the significantly more convenient application and support, a credit broker calculates on average about three percent of the loan amount.