Usually, borrowing is not a big deal in this country. If the customer meets the conditions of the bank, the credit is almost certain. The positive Credit Bureau is one of these conditions. Anyone who has negative entries in it will not receive a loan from a conventional bank. As there are more and more consumers struggling with a bad Credit Bureau, the credit market has opened up to this and now offers a foreign loan for Germans. But what is this loan all about?
Foreign credit for Germans – the situation
Anyone who looks around the Internet reads Credit Bureau-free loans, loans without Credit Bureau and with Credit Bureau, with a credit check and without, the advertising promises roll over. This can be very confusing for the less knowledgeable loan seeker. So here are a few tips to get a serious foreign loan for Germans.
Cream banks are very cautious when a customer makes a loan application and his Credit Bureau is bad. But why is Credit Bureau so important, some ask? Credit Bureau has contractual partners such as banks, telephone companies, insurance companies and mail order companies. For example, if a customer does not pay his cell phone bill, the telephone companies will report it to Credit Bureau. The mail order company does the same. If an installment is not paid, this will be reported to Credit Bureau.
From these entries it is then possible to see what the customer’s payment behavior looks like in the past. If the bank queries Credit Bureau because a customer has made a loan application and they receive the message that there are negative entries, the bank must assume that they will no longer see their installments. The loan is rejected because the bank’s risk of default is too high. But Credit Bureau is not only important for service providers; when renting an apartment, the landlord asks Credit Bureau how the customer meets his obligations.
So it can happen that the negative entry is the desire for the new dream apartment in the stars. So you can see that the Credit Bureau is a powerful instrument, but it can also be seen for the protection of the customer. If the bank did not refuse some loans or the mail-order company refused to pay some installments, even more people would be over-indebted.
The loan brokerage
But the desire for a loan is raised, even if the house bank or another Cream bank does not approve the foreign loan for Germans. Here remains the Credit Bureau-free loan that came mainly from Switzerland until 2009. As of this year, however, there are only intermediaries based in Switzerland. After an internal dispute, Agree banks were prohibited from lending to Germans. The reason was a lack of a banking license.
A license from Liechtenstein has had this license since 2010. Fine bank is currently the market leader among Credit Bureau-free loans. However, this bank does not have a German representative, so that the foreign loan is almost exclusively through credit intermediaries. The customer can get direct access to the bank via the simple website. But experience has shown that loan agencies can provide Germans with an easier foreign loan for their customers.
The customer should only contact the reputable agencies. The years of activity in the financial market should serve as an indication. Even if the brokerage does not require any upfront costs and refrains from signing dubious insurance contracts, a credit broker can be the solution, especially for difficult loan cases. In addition to the Litebank, he knows other banks that still grant a loan to a negative Credit Bureau.
However, the loan seeker must expect that a credit agency will not work for nothing. In addition to the foreign loan costs for Germans, the intermediary’s commission is added to the foreign loan. However, he is only allowed to offset this once the loan has been approved.
The loan from Liechtenstein moves with manageable loan amounts. Only three small loan amounts are provided. On the one hand 3,500 USD, the most approved loan, then with the best credit rating 5,000 USD and recently 7,500 USD. The rate for the first-mentioned loan is USD 105.00, for the USD 5,000 loan USD 150.00 and the USD 7,500 repaid with USD 225.00. The interest rate is around 11-12%, depending on the creditworthiness.
The terms of all three loans are 40 months. The bank does not ask Credit Bureau, and the loan is not entered. A loan is approved if the loan seeker has a sufficiently high income that must be above the garnishment-free limit. A permanent job, which must have existed for at least one year, is very important; for 7,500 USD, a job of four years is required.
The employment contract may not be limited and may not be given a trial period. The self-employed and unemployed, students and often also pensioners will usually not receive this foreign credit for Germans. The unemployed, the pensioner and the student receive state benefits that cannot be attached. The self-employed usually have no stable income.
Loan seekers for the foreign loan for Germans must be of legal age and should not be older than 62 years (previously 58 years, has been raised). The place of residence and the current account must be found in Germany. The bank does not query Credit Bureau, but takes a look at the public debt register. If there are credit terminations, oath of disclosure, bankruptcies or enforcement notices and attachments, the bank will not approve the foreign loan for Germans.
As experience has shown, this type of loan is not only applied for by customers who suffer from Credit Bureau. The customer who is planning a larger financial project also uses this type of loan, since the loan does not appear in the Credit Bureau and therefore the house bank is not informed about a loan. The good credit rating is therefore retained.
Before applying for a foreign loan for Germans, the customer should definitely draw up a budget. He compares his income with his expenditure and sees whether there is still financial scope for a rate. This is also important, because if the loan can no longer be paid, the bank will initiate the garnishment. A corresponding certificate is expected before the loan approval.