German banks are generally obliged to obtain a credit report from SCHUFA or a similar credit agency before granting a loan. If negative entries exist, they may not approve a loan. However, such a report is only a past assessment – specialized providers assume this to be the case. Here is an overview of the major topic of credit without SCHUFA.
Credit without or despite SCHUFA – that’s what it’s all about
you need a loan, but your house bank rejects your application. The reason: despite a regular and sufficient income, possible negative entries in the SCHUFA weigh heavier – and an old invoice that has been enforced can be enough. A credit without SCHUFA can then be the salvation, if you check the offers thoroughly. There are a number of dubious companies here, but also a whole range of serious lenders. So you can look for a suitable solution in peace and quiet, without the old debts permanently put a spoke in your wheel.
However, there are some points to consider if your request is to be successful. First, let’s clarify the most important terms:
- Credit without SCHUFA
this designation implies that no information from SCHUFA& co. It will be collected, but this is the exception.
- Credit despite SCHUFA
Here, the lenders interpret the information obtained differently, they evaluate their scope and, above all, use your current financial circumstances to assess the risk of a loan default.
- Credit SCHUFA-neutral
with this option your SCHUFA score will not be affected.
- Credit without SCHUFA entry
If you receive a loan, it will not be entered in the SCHUFA or any other credit agency, which is positive for your score.
Who grants a credit in spite of negative SCHUFA??
One thing is clear: a german bank is out of the question. It is primarily special platforms, the loans from and to private individuals are mediated. Here, private investors can invest their money in order to grant financing to credit seekers even with a compromised SCHUFA. In return, investors are credited with the interest on the loan, but must also bear the risk of default. this is exactly the point of the credit report that german banks are obliged to provide: the credit agencies collect a wide variety of data on all natural persons, for which they conclude agreements with banks, service providers and trading companies, which in turn have access to this pool of information.
Of course, it can also happen that data is incorrectly filed or entries are not deleted in due time. payment problems remain visible for some time, but then they have to be marked as done and after a blocking period they have to be erased. This problem, the platforms for loans from private targeted, because the conditions can have changed despite the entries fundamentally. If you have, for example, in the meantime a well-paid and not temporary job or the matter is already some time ago, this should not stand in the way of a credit application. The portals therefore include many more criteria in their credit checks and make individual decisions.
The fact is:
- Negative SCHUFA entries quickly lead to the rejection of a credit application.
- If the entries cannot be corrected, the alternative of a loan from private sources opens up.
- The can also be approved as a loan despite SCHUFA, if the circumstances allow this.
SCHUFA – and its great power
To understand the procedure, it is useful to take a look at the largest German credit agency: the abbreviation stands for schutzgemeinschaft fur die allgemeine kreditsicherung, the company now trades as holding AG. A wide range of information about private individuals is collected here, such as their place of residence, their employer, and their personal and, in particular, their financial environment. All account relationships, credit cards, credit agreements, installment contracts, etc. are recorded here – and above all the payment problems such as dunning procedures, enforcements, burst loans and private insolvencies.
It is estimated that SCHUFA alone has more than 750 million data records on more than 65 million German individuals. SCHUFA issues around 350 credit reports per day.000 credit information to companies with which it is contractually linked. In addition to banks and financial service providers, this naturally also includes retail and service companies. For example, each time you sign an installment agreement, you sign that you agree to the exchange of information.
The request is answered with a score value that can range between A and P. This refers to the probability of reliable credit repayment on the basis of past values, which is naturally of great importance to the bank. On the one hand, they reject you if you have a negative score; on the other hand, they base their creditworthiness-related conditions on the quality of your credit rating.
What does a SCHUFA report look like in concrete terms??
You can make your own picture, because since 2010 you are entitled to a self-disclosure – according to §34 of the Federal Data Protection Act (BDSG) even once a year free of charge. You receive an overview of the information that is stored about your person, but also your score and data about which companies have recently requested information about your person.
Now check carefully whether there are any negative entries in your credit report. This can be a bill that has not been paid or has been paid significantly too late, or payment problems due to a financial bottleneck. If such entries are made, your chances of obtaining a regular loan are reduced. Once the cases have been settled, the creditors must notify SCHUFA. After a blocking period, which depends on the type of payment problem, the entries even have to be deleted. Until then, there is only one option open to you: a loan without SCHUFA.
Credit without SCHUFA – this is how it works
The house bank proceeds as follows with a credit application: it obtains a credit report in every case, and is obliged to do so. To do this, they use SCHUFA, but also burgel or creditreform, two similar credit reporting agencies. If your credit report looks bad, your current financial situation and your prospects hardly matter any more. Even the advisor, who may have known you for a long time, can’t change that. Here, the instructions apply, and the employees have to adhere to them – even if you are perfectly capable of covering the loan installments from your income.
This is how alternative portals operate: the platforms broker loans from private to private – and are not as strictly bound by the credit brokering guidelines in doing so. In this way, not only the information on your creditworthiness is included, but above all your individual circumstances. From this, the portals deduce how high a credit could be granted in your case. In principle, it is more a question of loans despite negative entries in the SCHUFA, because private lenders also want to know what they are getting into.
The structure of such a request is usually quite simple: first, the conditions are determined anonymously so that the platforms can work out an individual solution. Some providers obtain a SCHUFA report directly, others wait until you have made a decision. If this is the case, you simply add the information that is necessary for a credit application.
Credit despite SCHUFA entry – these are the requirements
The access requirements for a loan without SCHUFA are the same as for a normal online loan:
- You are of age.
- you live in germany and have a bank account with a german commercial bank.
- You have a regular and sufficient income from a permanent employment relationship.
- You are not over-indebted.
Of course, these platforms for loans with negative SCHUFA entries also set their limits and inquire not without reason so extensively for your personal and financial circumstances: it is in the interest of the respective platform to protect you from a possible over-indebtedness. For this reason alone, no loans will be granted with a bad SCHUFA if you do not have regular employment or other regular income. Against this background, it is also clear that a loan without SCHUFA for the unemployed is only feasible to a very limited extent. There are platforms that specialize in micro and mini-loans – an installment loan with higher credit amounts, however, is unrealistic.
- Even a loan without or despite SCHUFA has its limits.
- The lender must be able to see that the repayment is possible.
- your regular income should not only be secure, but also sufficient.
Financing without SCHUFA – upfront costs, fees and high interest rates?
There are still concerns about credit without SCHUFA, which was once known as swiss credit. Long enough, there have been black sheep on this market, who first charged fees before they even made any suggestions. Often enough, an offer for financial reorganization followed, which was accompanied by the conclusion of life insurance or home savings contracts – then there was no longer any talk of a loan at all. It may well happen that you come across such dubious offers today – remain critical and check all conditions that are related to a loan with negative SCHUFA entries.
But today, there are reputable alternatives that benefit both sides: private lenders are looking for a lucrative investment that they can oversee. And on the other hand, there are numerous interested parties who are denied access to a standard loan, especially if they have negative SCHUFA entries. some foreign banks are also looking into the subject, so that more and more providers are entering the market here. The internet has created transparency here, which makes it easier to distinguish the reputable from the dubious providers. So be careful with this option, then you reach your goal.
Clearly separate important terms
The term "credit without SCHUFA" can mean different things, so that you should already look more closely during the research in the credit without SCHUFA comparison:
- No SCHUFA inquiry is made when applying for the loan – either the provider uses another credit agency or no credit agency at all, in which case he obtains his rating from other criteria. In this case, a loan would be possible as long as you can prove stable financial circumstances.
- Another variant is that after the credit has been granted, no entry is made in the SCHUFA or in any other credit agency. In principle, no one outside the company will know that you have received the loan.
- Against pre-costs or the purchase of third-party products,
- The company will contact you by mailbox or telephone and
- Being offered by dubious financial partners.
Credit despite SCHUFA: a practical example
A large part of the purchased vehicles is financed, more than 20 billion euros are borrowed annually in germany for this reason. If your SCHUFA is not spotless, this can be difficult – but there are alternatives. You can proceed as follows:
- First research a credit despite negative SCHUFA entries in a credit without SCHUFA comparison.
- Handles all formalities – submit documents and have credit application checked.
- As soon as you receive the loan amount, you buy the car.
- You can negotiate discounts as a cash payer and at the same time keep the vehicle title.
Of course, you will have to expect higher interest rates than would be the case with a classic car financing – but you have the car and can clean up your financial situation in peace and quiet.
Credit without or despite SCHUFA – this alternative is open to you
Often enough, such financing is also called a swiss loan – and for good reason: on the one hand, the lenders may well be located abroad, on the other hand, the swiss banks were the first to issue reputable loans without SCHUFA. Today, the offer is much more diverse, because specialized portals have long been established, which mediate the money of investors to borrowers – even without or despite SCHUFA. If you meet a provider from abroad, please pay attention to the then valid legal conditions. Here, only countries that are under european financial supervision are recommended – please be on the safe side.
In the case of private loans, however, which are brokered via German portals, German laws apply anyway. Nevertheless, you can make individual arrangements with the lender in order to obtain a loan even with negative SCHUFA entries. Here, too, certain limits apply: if you cannot prove a regular and sufficient income, this path will also be blocked. Then it is anyway questionable how you want to pay back a financing without SCHUFA. A loan despite negative SCHUFA must be reliably serviced in any case – that’s exactly what lenders are looking for.