Once you have not paid an invoice and received an entry from Credit Bureau. But not every unpaid invoice becomes a negative entry. If there is a judicial order for payment, the negative Credit Bureau entry is also manifested. About seven million people in Germany are over-indebted.
The Credit Bureau, the protection association for general credit protection, has stored data of about 65 million people, but only negative entries lead to a loan refusal, as well as difficulties with term contracts and payment on account. Credit Bureau stores all data such as personal information such as name, address and date of birth. In addition, the Credit Bureau file includes credit cards, accounts, loans, leasing contracts and customer accounts at mail order companies. However, no account balances are recorded. The Credit Bureau file contains open and already settled claims. In addition, affidavits, bankruptcies and arrest warrants are noted in the customer account.
Invoices with an amount of less than 1,000 USD are deleted after one month at Credit Bureau, positive invoices that have a higher sum remain for three years. Every consumer can view his Credit Bureau data once a year, free of charge, and correct it if necessary. A consumer with a negative Credit Bureau should know that a negative entry will only be made if a judicial order for payment procedure has been sought. With this constellation, German banks do not grant normal loans. Banks conduct Credit Bureau queries before each loan is granted. If the aforementioned negative entries exist, the loan is rejected. The credit risk is too great for the banks, meaning that they fear that they will default and that they will remain on their credit.
But what are the chances of getting a loan with a negative Credit Bureau entry?
The loan with a negative Credit Bureau entry
Basically, it can be said that a loan with a negative Credit Bureau entry can be approved. The view goes in the direction of credit brokerage. An immense number of advertisements flood the Internet. They all advertise the loan with a negative Credit Bureau entry. The requirements that credit agencies require are so low that almost anyone could get a loan. The whole range of offers is advertised, from bankruptcies to unemployment to no income. It has to be said that this is all hot air. There are some dubious loan offers among them that you can do without. Most of the time, no loan comes about, but there are upfront fees, which are often made dependent on a loan approval. A loan seeker should forego this.
Credit Bureau-free loans are so-called Swiss loans that have been granted by a single bank from Liechtenstein since 2010. Swiss loans have been around for more than 20 years, they used to be called housewife loans, but due to inconsistencies, a major provider was refused admission. As a result, many providers discarded their offers. Of course, there are still a few small Swiss banks that also grant serious loans. But before you start looking for yourself, the work of a credit broker is preferable. A credit broker knows the banks and can recommend cheap loans to consumers. However, not all are qualified for a loan with a negative Credit Bureau entry.
Credit with a negative Credit Bureau entry and the possibilities
Anyone who decides to apply for a loan with a credit intermediary can choose between two large brokerage companies. These brokers work on a serious basis and do not charge any upfront fees, nor are insurance contracts made dependent on a loan commitment or unwanted home visits. If the foreign loans are rejected, the income is too low or ongoing collection procedures are pending. A Swiss loan is granted if the loan seeker has sufficient and regular income. The income must come from a self-employed activity and be above the garnishment exemption limit. There must also be an open-ended employment contract. The loan amounts are limited; they amount to $ 3,500 or, depending on the creditworthiness, a maximum of $ 5,000. If you need a larger loan amount, you have to provide other collateral.
This can be a solvent guarantor or valuable property security. The latter is only available to very few loan seekers. The repayment of both loan amounts is 40 monthly installments, regardless of which loan installment is chosen. What to consider with this type of loan. Since the income is often the only loan security, a transfer of wages must be signed. If payment defaults occur, the immediate garnishment of wages comes into force. The interest rate of these loans is also somewhat more expensive than a normal loan. To do this you have to calculate the commission for the credit intermediary, who can only calculate his commission after the loan approval.
If there is also no loan with a negative Credit Bureau entry for the Swiss variant, the search should not continue indefinitely. This increases the risk of reaching a dubious mediator. Help with debt counseling might be sought here.