Consumers almost always only refer to a negative entry as a Credit Bureau entry, in fact the credit protection system keeps more neutral entries such as borrowed and properly repaid loans, existing checking accounts and existing mobile phone contracts as negative features in their documents. A surety agrees to pay to the financial institution if the borrower is unable to meet its obligations.
Does the Credit Bureau entry generally prevent borrowing?
Consumers often assume that under no circumstances can they take out a loan without a guarantor despite Credit Bureau entry. In fact, some banks reject the loan for every negative entry in the Credit Bureau file, but many banks are willing to examine the specific case. You grant a loan despite Credit Bureau entry without guarantor, if the financial situation of the borrower has improved since the negation of the negative feature and he can prove a secure income.
Furthermore, borrowing from a co-applicant increases the likelihood of lending. In any case, the joint loan application is advantageous for the financial institution in relation to the guarantee, since the legislature places high demands on the financial performance of private individuals in order to enter into a legally effective guarantee obligation.
The loan without Credit Bureau as an alternative
As an alternative to a loan taken out at a German bank despite Credit Bureau entry without a guarantor, the processing of the desired loan via a Swiss or Liechtenstein bank is an option. These financial institutions are not Credit Bureau contractual partners and therefore have no knowledge of the existing negative entries. A prerequisite for borrowing without Credit Bureau in Switzerland or Liechtenstein is a minimum income depending on the size of the household, the amount of which for single-person households is between 1000 and 1100 dollars, depending on the institution.
In contrast to borrowing from German financial institutions, Swiss banks only count labor income and not child benefit that may go to the household as the relevant income for Credit Bureaufree loans. The amount of the loan is generally limited to 3500 dollars for a loan taken out in Switzerland despite Credit Bureau entry without a guarantor, higher sums are possible when applying for a loan via a credit agency.
In this case, the applicant ensures that the intermediary does not charge any upfront costs, but only an appropriate fee if the loan is successfully granted. There is no currency risk with Swiss Credit Bureau-free loans, as these are paid out and repaid in dollars.