Who lends money to negative credit bureau? Most people will probably come across foreign banks and credit intermediaries for this question, but even traditional banks often lend out loans. And finally, there are also credit platforms, which catch up with credit bureau information, but do not immediately reject customers even with negative entries.
What is the credit bureau?
Today, it is a public company, but the shares are not traded on the stock exchange, but are owned by banks and trading companies.
The credit bureau collects information about debts and their repayment. On this basis, a repayment probability is calculated. This calculation is by no means based solely on gray theory. Rather, data from the past is analyzed. How often does someone who has not paid a mobile phone bill pay later on a loan? And how does the debt influence the default probability? Using various values, a model is developed with the help of a so-called logistic regression, as the different factors are related. Based on this, the individual probability of repaying the loan is then calculated for each person.
Different values are developed, one general and several industry specific. Behind this is the assumption that the payment behavior can be different, depending on whether a mortgage loan or a mobile phone bill to be paid. The credit bureau is silent on some details, however, which gives her the charge of non-transparency. Especially since some changes in favor of the customers were implemented only on pressure of the state, for example the right to a self-disclosure.
Fixed-price loans can be tight because the waiver of credit-worthy interest pays off for the bank only if most borrowers repay their loan reliably. Unless, of course, you can have a partner who, in case of doubt, repay the debt and has a good credit rating of his own.
The same applies to loans from private. There, the credit rating is also checked with the help of credit bureau, but the conditions of admission are often more generous. And finally, as last alternatives, the credit without credit bureau and the mortgage loan remain.
So there are these possibilities:
- Regular bank loan
- Credit from private
- credit without
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Option 1: The bank loan
Effective annual interest rates of less than 2.5 percent are unrealistic with a poor credit bureau score. Loans with negative credit bureau are only available with interest premiums. Of course it makes a big difference why and when you got a negative entry. Anyone who has not paid his phone bill a long time ago has better chances than someone who has just been forced to foreclose on a loan that has not been paid off.
However, the comparison calculator uses for its calculation the interest that customers with particularly high credit ratings receive. But this is only conditionally meaningful for applicants with a low credit rating. That’s why we have put together a list of banks that still lend and offer a fair credit offer, even with medium credit ratings.
This includes the norisbank, which offers a particularly good price-performance ratio. Good Finance also offers good service. The bank also has a high-yielding sector, which also has a negative credit bureau the chances of a grant are good – of course, correspondingly higher interest rates. The same applies to the classic easyCredit, which offers particularly fair and flexible conditions, but is also more expensive than the two competing products.
Especially with low creditworthiness, it is often worthwhile to take the loan together with a partner. Of course, this is especially true if his or her income is significantly higher. But even with the same financial situation, a second borrower is an advantage. However, that also means that both can be seized. Especially for couples who are not married, this can be a problem.
The alternative is a guarantor . This can theoretically be anyone, but in practice they are mostly relatives or close friends. Banks almost always demand a direct guarantee, which means that the guarantor is treated as if he were the debtor himself. Normally, creditors are only allowed to approach the guarantor if they have instituted an execution against the debtor and this has been unsuccessful. On the other hand, the bank can demand money from the guarantor immediately if the debtor does not pay. This is convenient for the bank, but makes it difficult to find a guarantor.
The big advantage: With a financially healthy guarantor, a normal loan can be looked for in the installment loan comparison, often even on good terms.
norisbank Request direct norisbank loan offer
Option 2: A micro-loan
If you do not have a guarantor, you still have a microcredit . Already starting from 601, – USD income the direct money of the Targobank can be applied for. 100, – to 3,000, – $ can be borrowed there for two to six months. Even shorter are the terms of the Berlin vendor Vexcash. Here you can borrow a maximum of 500, – USD for seven to 30 days, from the second loan up to 1.000, – USD.
Because of the short duration and the low altitude, the admission criteria are much more generous. Anyone who is rejected anyway can ask for another exam. If he is rejected then no fees will be charged. However, if Vexcash now reviews the verdict and offers a loan, the examination must be paid separately. For this you get a credit certificate, which can also be used later and which can also be submitted to other banks or traders.
Vexcash also offers terms of more than 30 days, but sometimes only from the second application. Moreover, these are often disproportionately expensive. In most cases it is better to pay the loan after 30 days and, if necessary, to take a new one as soon as the money is used up.
Option 3: The loan without credit bureau
The credit without credit bureau is the classic way, if the house bank wants to forgive any more loans. Most are foreign banks, for example from Switzerland, who jump in here. Because the credit bureau is predominantly active in Germany, abroad there are other methods of credit check.
Checked is the ability to repay but also there. Unemployed people therefore usually have no chance of getting a loan abroad, as are low earners with very little income. That’s because they often do not repay their debts. The bank then has little handle. According to experience, attachable property is often not available in low-income households and incomes may only be seized from a limit set by the legislator. Which is far above the social assistance rates, who has two children to provide, which can be seized only from 1,710.00 USD – and then only a few USD. It does not matter if the children live in their own household or if they pay only for their maintenance.
Of course, foreign banks also know that it is above all customers with a low credit rating who apply for a loan without credit bureau. That’s why the interest rates are often higher. And income and debt are also being examined here, but not with the help of credit bureau. A loan without credit bureau is especially beneficial if the financial situation is actually good and only a bill that has not been paid in the past makes borrowing more difficult.
The way to a loan is usually via a credit intermediary. Customers should be careful to choose a reputable partner such as Credither, Viloan or Zaloan. They are characterized by the fact that they do not charge any up-front fees and always make a non-binding and free offer first.
The East German company Zaloan offers a special extra. Who agrees to the credit bureau clause, receives offers for a loan with and without credit bureau and can then decide between the two.
Option 4: The loan from private, but not entirely without credit bureau
People who are also rejected by credit intermediaries are often forwarded to credit intermediation platforms by them. Sometimes, as with Creditend, both bank and personal loans are brokered, in part, as in Bankate and Astro Finance, only private loans. The answer to the question “Who lends money to negative credit bureau?” Is then: private individuals.
Basically, of course, private investors do not want to give away any money. Therefore, even the major credit platforms always check the creditworthiness of the applicants and also work together with the credit bureau. People with very low credit ratings are also rejected here. However, this first test is more generous than most banks, so you can also borrow with negative credit bureau.
But then a second hurdle must be overcome. There must be enough funds to support the loan project. As a rule, not one person makes the whole sum available, but a loan of 5,000 USD is raised, for example, by 100 donors, who deposit 50 USD each. If there are not enough financiers, the credit agreement does not materialize.
The advantage of the credit platforms is that the audit is less standardized. For example, those who can no longer obtain credit from the bank, but can justifiably explain why they repay the capital and possibly also have a worthwhile use, still have a chance here.
Bankate Request direct Bankate loan offer now
Option 5: Mortgage Credit
The last option is a mortgage loan. If you can offer valuable security, you can easily get loans from a negative credit bureau.Usually the credit data of the credit bureau are not reported, so a mortgage credit does not worsen the credit bureau score. Because for the pawn shop, the creditworthiness of the customer is unimportant, the loan is indeed secured by the pledge.
Above all, jewelery and watches serve as security, because they are valuable and nevertheless easy to store. Sometimes there are also car pawn shops where vehicles can be parked as a pledge. Unlike the classic car loan but it can not be used during the repayment period.
However, the mortgage loan also has a number of disadvantages. Due to the time-consuming estimation and storage of the pledge, the interest rates are by no means low despite the high level of security for the lender. In addition, there is a high risk of over-indebtedness. In the case of bank credit, the financial institution has an interest in avoiding it. After all, it loses money then. In the case of a pledge loan this protection is eliminated.
A foreclosure sale not only means the loss of the pledge, but also additional costs. In fact, the proceeds will be used to pay the auction fees first. Then the balance will be paid and the rest will be paid to the former owner. If there is a high probability that the debt can not be paid and if you do not want to forego the money, then a sale is often more useful, as there are no interest rates.
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In the example case, however, the unemployed person gets a respectable income for a single person at 1,200 USD. Apparently, he had previously had a net income of about 2,000 USD. However, the performance is counted for a maximum of one year, and only from the age of 55, longer reference times are possible. The maximum is two years, but you have to be at least 58 years old and have paid contributions for four years.
Anyone who has paid contributions for at least two years and is under 55 will, as in our example, receive money from the Employment Agency for one year. This also limits the term of a loan. Anyone who needs money for a longer period of time will hardly receive it. But even with shorter terms unemployed people often will not receive a loan. Many banks and even credit intermediaries exclude unemployed people from lending.
A try here can be the way through a lending platform like Bankate value. If you need the money to start a business, you should also look for special start-up loans. In part, the state development bank Intrasavings bank takes over a default, so that the loans for the banks are worthwhile even at higher risk.