Are you looking for a loan without Credit Bureau? Here you will find the most important information about Credit Bureau-free loans and about some reputable providers.
There is as much uncertainty about no other loan type as about the loan without Credit Bureau. Terms like Credit Bureau, creditworthiness, creditworthiness check and proof of income are jumbled up. This is not the fault of the consumer.
Untrustworthy providers joke the myths that Credit Bureau-free loans are available to practically everyone in every amount regardless of creditworthiness and income.
A thorough education about this form of credit, and why it is not so easy to actually get such loans, is carefully avoided.
Black sheep usually operate on the verge of legality. At worst, they are simply fraudsters. Preliminary costs for whatever services are a sure sign of a lack of seriousness.
The same applies if insurance and other financial products are offered with the indication that this will facilitate Credit Bureau-free lending.
Most of the time it is not really about credit transactions, but about taking out insurance and collecting addresses for lucrative address trading. Loans cannot be brokered at all.
Having said that, contrary to what some consumer advocates say, and Credit Bureau itself, there are a number of trustworthy financial service providers who can actually obtain loans without Credit Bureau.
What are Credit Bureau-Free Loans?
A loan without Credit Bureau is always a standardized small loan of $ 3,500, $ 5,000 and more recently $ 7,500.
The loan is usually repaid in 40 equal monthly installments, with the first installment due two months after the loan was taken out.
Credit Bureau-free loans are expensive. The interest level corresponds approximately to that of overdraft facilities.
Not a single credit feature is negotiable. Those interested in credit can only make a selection from the various loan amounts. Small loans are all-purpose loans.
Credit Bureau and other credit bureaus are not involved in the lending process.
A Credit Bureau request is neither made, nor is a notification of the loan being issued. Therefore, the loan is not taken into account when determining the credit score.
However, this advantage does not apply if there are problems with the repayment of the loan. Such incidents are reported to credit reporting agencies and negative entries are made.
However, providers must meet European consumer credit guidelines. In this respect, these are regular loans, the interest of which, however, is significantly above the usual market interest rate.
Where can I get a loan without Credit Bureau?
Which banks grant Credit Bureau-free loans? The answer is: no German banks. Domestic banks are obliged to determine the creditworthiness of their customers in connection with credit inquiries by providing information to credit agencies.
All loans without Credit Bureau come from abroad. Originally, it was probably primarily credit banks from Switzerland that granted these credit products to Germans.
This is where the term “Swiss loans” comes from. At the moment (July 2016) it seems that all or at least the vast majority of Swiss loans come from Liechtenstein.
Private borrowers have two options:
- You can contact the Lite Lender in Liechtenstein directly online. As far as can be seen, this is the only way to apply for Credit Bureau-free loans directly from the bank.
- You can also contact a reputable credit broker who will make loan offers free of charge and without obligation.
The current loan offer without Credit Bureau looks as follows:
|Net loan amount||3,500 USD||5,000 USD||7,500 USD|
|total interest||706 USD||1,008 USD||1,512 USD|
|total amount||4,206 USD||6,008 USD||9,012 USD|
- Loan over 3,500 USD: borrowing rate – 10.59 percent, annual percentage rate – 11.12 percent, repayable in 40 monthly installments of 105.15 USD each,
- Loan over 5,000 USD: borrowing rate – 10.58 percent, effective annual interest rate – 11.11 percent, repayable in 40 monthly installments of 150.20 USD each,
- Loan over 7,500 USD: borrowing rate – 10.58 percent, effective annual interest rate – 11.11 percent, repayable in 40 monthly installments of 225.30 USD each.
The first installment is due in the month after next after the contract is signed. The actual loan term can then be strictly 42 months.
In the loan application, exact information about the personal circumstances, the employer and the employment relationship is expected. Garnishments as well as assignments and other liabilities such as existing loans must be specified.
Among other things, copies of the ID card, the electronic wage tax card or the December wage slip as well as the last two original wage slips with the original account statements, from which the receipt results, are required.
All information reflects the current status in July 2016.
The business area of credit brokers that offer their services online usually includes the brokering of Credit Bureau-free loans.
Credit brokers do not regularly state which banks they work with on their websites.
However, there is a reasonable presumption that the loans brokered without Credit Bureau (almost) exclusively come from Lite Lender.
We currently recommend Agree Bank and Cream bank. Both financial service providers are reputable and do not charge any upfront costs.
Agree Bank claims to arrange most of the loans in Germany without Credit Bureau. The financial service provider is probably the market leader in this segment.
Cream bank is a credit broker that offers a wide range of different credit products. The financial service provider from Halle is rightly proud of professional customer advice. Cream bank’s advisory services should not be refused.
Often there are alternatives to expensive small loans without information, even with Credit Bureau problems. Simple measures such as postponing the loan application by a few months can make it possible to grant normal installment loans.
Customers can also optionally use the modern video identification procedure at Cream bank, which speeds up lending somewhat.
Credit Bureau-free loans brokered by credit brokers are not or only marginally more expensive than a direct loan from Lite Lender.
Those who are not committed to loans without Credit Bureau from the start can benefit from expert advice and, if necessary, achieve a cheaper loan solution.
Who gets Credit Bureau-Free Loans – Loans to Unemployed?
The loans are only granted to permanent employees or civil servants. The employment relationship must be permanent. Depending on the loan amount, the employment relationship must have existed for 12 months or 36 months.
There is minimum income. For a loan amount of 3,500 USD, single people must earn 1,150 USD net, with a loan amount of 5,000 USD, the minimum income for single people is 1,600 USD.
If there is more than one maintenance person, the minimum income increases. There are indications of attachment tables and the monthly charges listed above.
The attachable income must in any case be sufficient to repay the loan.
Existing attachments or assignments preclude lending. Loans without Credit Bureau are granted to persons of legal age who are resident in Germany.
The following people do not receive a loan without Credit Bureau: pensioners and people over 60 years old, self-employed (both tradesmen and freelancers), housewives, students, trainees, temporary workers, people with mini-jobs, unemployed people, recipients of Hartz – IV or other social benefits.
Offers aimed at these groups of people are always dubious.
The same naturally applies to people without an income or with only a low income, which is below the income limit set out above for single persons without maintenance obligations.
A joint loan application is just as impossible as co-signing by a guarantor.
Loans without Credit Bureau are only ever given to one person.
Some financial service providers allow credit applications for people with insufficient income if another person is specified. In these cases, the other person is always the borrower and is fully liable.
Credit Bureau no – credit check yes
A common misunderstanding, especially fueled by dubious providers, is that credit without Credit Bureau is synonymous with loans without a credit check or even without a credit rating. Many consumers are therefore looking for loans on the Internet under such terms.
A credit check always takes place. First, it is about regular, sustainable income, which ensures the repayment of the loan.
In addition, the creditworthiness is checked using data from publicly accessible directories. Specifically, this means that loans with an affidavit, insolvency or arrest warrant are excluded from the outset.
The same applies if enforcement measures such as garnishment of wages have been initiated after the final determination of claims.
Applicants must be clear: the Credit Bureau and other credit reporting agencies are not involved.
Otherwise all publicly available information sources (debtor register) will be exhausted in order to get a picture of the applicant’s creditworthiness.
The frequent confusion of credit checks and the involvement of credit bureaus is the reason for the many rejected loan applications and the many disappointed applicants.
There are statistics according to which only two of approximately 170 applications are approved.
How does a loan work without Credit Bureau?
If the loan is requested directly from a bank, such as the Lite Lender in Liechtenstein, you print out the loan documents and send the loan application along with the requested documents back to the bank, if necessary using a PostIdent procedure.
The bank checks the documents and subjects the applicant to a credit check, but without the involvement of Credit Bureau or another credit agency.
If the check is positive, the requested loan amount will either be transferred to a current account or paid out by post for an additional fee.
For credit intermediaries, such as Cream bank, the process is a little more complicated at first glance:
- First, the form for the loan request is sent online. The information required is approximately the same as that of Lite Lender, but is limited to the essentials.
- The responsible clerk will check the information provided as quickly as possible, usually on the same working day, and offer the customer advice on possible alternatives.
- If a loan remains without Credit Bureau, the documents are passed on to the partner bank of the credit intermediary. As a rule, the financial service provider prepares the loan documents so that a relatively quick commitment can be expected.
- Cream bank then sends the customer the credit documents, which must be signed and sent back together with the requested documents. If the video identification process is selected, this process can be simplified and accelerated.
- The partner bank then checks the fully completed, signed and signed loan application and, if the result is positive, pays the loan amount in the desired form. The credit intermediary receives a notification of the payment.
How many loans can you have without Credit Bureau?
Some search engine users want to know how many loans without Credit Bureau a certain person can take out. The question is easy to answer. There is currently no more than one loan.
Borrowers can use the Lite Lender application form to determine the criteria according to which Credit Bureau-free loans are granted.
We specifically ask about liabilities and existing loans. If the question is answered in the affirmative, foreign banks will no longer issue further Swiss loans.
Instant loan without Credit Bureau?
Fast credit, express credit, 24-hour credit, express credit or instant credit, as good as this advertisement sounds, it only applies to short-term mini loans at best.
In all cases, it has little to do with reality. The payment period for normal installment loans is on average seven working days.
Applicants usually have to wait even longer for the payment of Credit Bureau-free loans.
After a preliminary check, the very complicated credit check takes place without the involvement of credit agencies. Lenders rely on public directory analysis, and it takes time.
In their view, financial service providers are understandably reluctant to provide information on the duration of disbursement of Credit Bureaufree loans.
If they are done honestly, as with the reputable credit broker Cream bank, customers learn that the approval can take a few weeks.
Car loan without Credit Bureau?
Special motor vehicle loans without Credit Bureau are not offered. Of course, normal Credit Bureau-free small loans can also be used to at least partially finance vehicles once they have been approved.
However, in many cases, expensive Credit Bureau-free loans will not be necessary in the context of car financing.
In particular, house banks that know their customers will not generally refuse to grant loans even if soft Credit Bureau entries are available.
Because they have the additional security of the motor vehicle as additional security.
Another option is a loan from private to private, brokered by the Intrasavings Bank credit exchange.
The financial service provider also accepts motor vehicles for security. This increases the likelihood that private investors will finance the loan request.
Credit comparison without Credit Bureau?
Every now and then you read that a loan comparison without Credit Bureau is offered. Of course, consumers can take the trouble to get several specific loan offers.
However, the market for Credit Bureau-free loans is extremely manageable. There are some reputable credit intermediaries who can actually help their customers get loans without Credit Bureau.
Then there is the Lite Lender, which you should contact if you are committed to a Credit Bureau-free loan from the outset and therefore exclude other loan solutions.
As far as can be seen, credit intermediaries mainly use the offers of Lite Lender. In one case or another there may be other partner banks.
The conditions of Credit Bureaufree loans are always standardized. All requests made for a comparison therefore lead to very similar results.
Why Credit Bureau Free Loans?
It is often said that loans without Credit Bureau are the ideal secondary loans. They do not affect the credit score for future borrowing because they do not appear in any credit bureau as long as the loans are repaid in accordance with the contract.
In addition, they can be kept completely secret from banks, spouses and employers.
Complete discretion is only given, however, if the payment is made by post and the installments are paid by payment slip.
Otherwise, account movements appear on the checking account, which reveal the loan when viewed manually.
Postable payments and payment in installments by means of a payment slip at the bank counter can cause additional fees, making the already expensive Credit Bureau-free loan even more expensive.
Another application example is the prevention of negative features that would preclude further financial scope.
If, for example, the overdraft facility granted has been illegally overdrawn and there is therefore a risk of the current account being terminated, the current account can be closed using a loan without Credit Bureau if normal installment loans are no longer possible.
It can only be decided in individual cases whether loans without Credit Bureau are a solution in these and similar cases.
It is also possible that the borrower will fall even further into debt due to the new loan. Then no further borrowing is recommended, but rather going to debt counseling.
The solution using Credit Bureau-free loans is only recommended if the borrower can still pay the installments after closing the checking account.
Credit Bureau-free loans: serious or fraud?