Business loan seekers whose credit report contains a negative entry, want to be able to borrow without private credit. These actually exist and are mainly offered by banking institutions in Switzerland and Liechtenstein. The usual product name is Swiss Credit, even if it actually comes from a bank in the Principality.
For some borrowers, loans without private credit make sense even with a good credit rating. This is the case if a second loan is planned within less than six months and the interest calculation for the last loan taken is credit-related. Of course, taking out a loan within a short period of time does not constitute a credit rating, but it obviously worsens the private credit score temporarily. Most financial institutions use these as the sole benchmark or at least in addition to other data when setting interest-based interest rates.
Private-credit-free loans from Switzerland and Liechtenstein for entrepreneur
The best known loans without private credit come from Switzerland and Liechtenstein. They are awarded almost exclusively over 3500 or 5000 euros. The amount in euros is not based on a conversion, but on the actual loan settlement in the European joint account, so that no foreign currency risk exists.
Most Swiss financial institutions outsource their loans without private credit only to employees, only a few Liechtenstein banks are self-employed and freelancers also welcome as a borrower. The income calculation for private credit loans aside from the child benefit and any additional income tax-free allowances remain outside. At the same time, the Swiss and Liechtenstein banks demand a significantly higher minimum income than most domestic credit institutions. In this way, they partially compensate for the lack of creditworthiness of the private credit information.
Contrary to a presumption common among bank customers, nobody can simultaneously borrow several installment loans without private credit from different Swiss or Liechtenstein banks and thus circumvent the amount limitation. The reason for this is a routine request from the Swiss ZEK, which performs similar tasks as the German private credit. The data held by Swiss credit protection for credit applicants resident in Germany only includes data from loan agreements concluded in Switzerland. Thus, the Swiss bank does not know that its customers in Germany have forfeited a negative feature.
As an alternative to the Swiss loan, a loan broker can borrow non-private credit from banks in other countries. These are, if the seat of the financial institution is not located in a euro zone, processed predominantly in the currency of the banking country. Debt-free loans are also possible via a loan broker for amounts of more than 5,000 euros. Before placing an order with a service provider, credit seekers convince themselves that they only charge a reasonable commission for success and no pre-cost.
Are bank loans without private credit possible at German financial institutions?
Generally speaking, German credit institutions do not lend out loans without private credit, with the exception of short-term loans for short maturities and low amounts, which individual banks refrain from soliciting. Instead of a classic credit check, specialist banks limit lending to € 500.00 initially and increase the potential volume with each proper repayment.
Intrasavings Bank’s loans can in fact be described as promotional loans without private credit in most programs. Although the promotional bank makes a private credit request, rejects the cash payment but only after a requested personal bankruptcy and no other negative entries. Naturally, loans from Intrasavings bank Bank are eligible only for applicants who fulfill the funding guidelines.
Bank customers are not necessarily dependent on lending without private credit with a soft or marked as done negative entry. Rather, few financial institutions offer in these cases explicitly a case-by-case examination of the loan application, so that the lending is conceivable. Compared to private creditfreien loans from Switzerland, the loans of domestic financial institutions are usually much cheaper.
Borrowing without private credit outside of banks
Classic loans without private credit forgives the pawnbroker. He does not collect any credit information and does not ask for a customer’s income because the pledge serves as sole collateral. Leihhauskredite are associated with high costs and come only for short terms and low amounts in question. In addition, their inclusion requires the possession of a sufficiently valuable pledged item.
Depending on the company, life insurance can not be lent without a private credit request, or at least with a negative credit rating. Finally, the insured is liable with his own payment claims for the loan repayment. However, consumers should refrain from lending a Riester pension, as such is regarded as defective use and leads to a retroactive loss of the allowances received.
Personal loan exchanges define loans without private credit other than banks. They usually understand this as a credit application in which the members registered as lenders do not gain access to the private credit data of the applicant, while the operator has certainly obtained a credit rating. A soft negative feature does not lead to a rejection of the desired membership as a borrower on the platforms for personal loan brokerage. However, it is questionable whether blocking private credit information makes sense for potential lenders. Most private lenders on the relevant platforms reward comprehensive information about the applicant’s financial situation, so that disclosure of a disclosure in the private credit, despite its negative content, has a positive rather than negative impact on lending.