In addition to current negative characteristics, entries that have been made are generally considered to be negative Credit Bureau, even if the credit protection association itself includes these as neutral entries. A negative Credit Bureau complicates borrowing, but does not completely exclude it. The Credit Bureau divides between soft and hard negative characteristics.
Lending with negative Credit Bureau by German financial institutions
A loan with a negative Credit Bureau is more difficult to obtain than a loan with a Credit Bureau information service without negative characteristics. Several financial institutions generally refuse to grant loans to negative customers who have previously been unknown to them. However, this does not apply to all credit institutions, because some banks examine each individual case and approve the requested loan with a negative Credit Bureau, provided that the characteristics are soft and the applicant credibly demonstrates that his financial situation has improved in the meantime.
As a rule, loans with the required submission of proof of salary to poor Credit Bureau are easier to obtain than instant loans without proof of earnings. The desired loan with negative Credit Bureau is easier to implement on platforms for private loan brokerage compared to financial institutions, since the private lenders registered there pay attention not only to the creditworthiness of the applicants, but also to social criteria and the specific project for the loan request.
Borrowing with negative Credit Bureau in Switzerland
Swiss banks are more willing to pay out a loan with a negative Credit Bureau compared to German credit institutions, especially since they refrain from obtaining Credit Bureau information. For the loan without Credit Bureau, there is generally a maximum amount of 3500 USD, which some federal financial institutions have increased to 5000 USD. If a loan is required for larger sums, it is necessary to commission a credit broker. He works seriously if he does not charge any upfront costs, but only an appropriate success commission.
The Credit Bureau-free loan taken out in Switzerland is associated with higher interest rates than classic German bank loans, since the risk of default increases due to the waiver of the Credit Bureau request. So that consumers do not have to pay unnecessarily high interest rates for a Credit Bureau-free Swiss loan, they compare the terms of several providers and apply for the loan online after the loan comparison.
No additional processing costs or exchange rate risk arise for a loan from Switzerland, since the banks paying out these have their own bank accounts with German financial institutions and the entire loan processing is carried out in USD.