If you want to take out a loan with a bank, you will hardly be able to avoid the schufa inquiry. Negative schufa entries lead to credit rejection in the vast majority of cases. At least the credit will be much more expensive.
- Important distinction: the topic of credit and schufa usually leads to confusion. It makes a difference whether you are looking for a credit without schufa query or a credit without schufa entry.
- Credit without schufa query: in the case of credit without schufa inquiry, the bank would grant you a credit without obtaining a schufa information for the decision. But this does not mean that the credit agreement is not reported to schufa.
- credit without schufa entry: with a credit without schufa entry, the bank grants you a credit without this being reported to schufa. This is often the case with small loans. However, this does not mean that the bank does not check the schufa information in advance.
schufa plays an essential role in the approval of loans.
the schufa information is a very important feature for the bank when approving loans, because it provides very quick information about the applicant’s financial situation.
Is the schufa score too low, the bank usually rejects the request in order to protect itself from a potential loan default.
What does the schufa information mean in concrete terms and does it exist? possibilities for a credit without schufa? These questions should be answered in the following.
What is schufa and why is it needed??
"schufa" stands for "schutzgemeinschaft fur allgemeine kreditsicherung" (protection association for general credit protection) – the largest credit agency in germany. schufa’s history goes back to the 1920s. the current structure with schufa holding AG as the umbrella, however, has only existed since 2000. schufa is supported by banks, large commercial enterprises and other service providers. Typically, these are industries that are interested in the schufa data.
At the schufa are more than 800 mio. Entries of around 67 million. Federal citizens stored. This means that practically every adult in germany is listed in the schufa database. The data stored concerns contracts with regular payment obligations, payment behavior and payment problems. Even if the solvency is permanently in question, it will be "noted" in the schufa.
A company that is a schufa partner can be schufa queries give an impression of solvency and willingness of its customers. This is important information for deciding whether a transaction should be concluded at all. For banks, the schufa query is an indispensable part of the creditworthiness check.
What does schufa provide information about??
schufa stores a lot of data, but does not disclose all of it in queries. According to schufa, only data is made available that is necessary for a trusting business relationship are necessary. schufa partners also generally receive only relevant data extracts. A distinction is made between A and B contract partners. Banks usually belong to the A category. These partners receive both stored positive and negative characteristics about the person in question, who must always give his or her consent for the schufa information to be provided.
The positive characteristics are about existing credit relationships to (other) banks or credit card companies. In the case of negative features, the following are listed – if available "conspicuous features" listed in the case of payment behavior from all contractual relationships recorded by schufa. An important additional and summarizing piece of information is the schufa-score value.
What is schufa scoring??
schufa scoring is an instrument that uses mathematical-statistical methods to aggregate the data stored by schufa into a score score condensed. This makes it possible to derive the probability that a customer will default on payments – a very important piece of creditworthiness information.
In addition to the "normal" information, Schufa partners also receive the score value that they require for their credit assessment be able to use. A special bank score is made available to banks in the process. How exactly the score is calculated and how individual features affect it is a well-kept schufa trade secret. However, it is immediately obvious that negative characteristics worsen the score.
What role does schufa play in credit inquiries??
schufa comes into play even when a credit inquiry is made. A distinction must be made between pure condition inquiries and "real" credit inquiries in the sense of credit applications. A credit inquiry is a non-binding inquiry with a bank about the conditions under which a loan would be possible. This is the only way to make effective comparisons, because the individual creditworthiness of the inquirer is taken into account when determining the terms and conditions. This is not possible with general condition data.
Condition inquiries are reported to schufa with the characteristic "KK" (condition inquiry) reported. But they have no influence on the credit rating. Other banks cannot see it either. After a short time, the characteristic is automatically deleted. Requests for conditions, such as those that can be made via our comparison portal, are therefore in fact neutral in terms of creditworthiness and without any risk whatsoever.
The situation is somewhat different for "real" credit inquiry from. This takes place when a signed credit application is submitted to a bank together with the necessary documents – i.e. the credit is sought in a concrete and binding manner. Here the characteristic "AK" (credit inquiry) registered and remains stored at schufa for one year. At this time, it can also be seen by other banks in schufa queries.
Avoid several credit inquiries in succession
Many credit inquiries within a short period of time indicate that the applicant is in urgent need of a loan and is having problems obtaining it. Many almost simultaneous AK notifications therefore also worsen the schufa scoring. For this reason, a "real" credit inquiry is not schufa-neutral.
Credit without schufa – what does that mean??
"credit without schufa" either means that, when granting credit no schufa query will take place or that the credit will be granted even if (individual) negative schufa characteristics present. However, as a rule, these must not be too serious. In the case of an ongoing personal insolvency or an affidavit in the schufa file, even the most risk-tolerant lender will refuse the loan.
Instead of "credit without schufa", the terms "credit without schufa", "credit despite schufa" or "credit neutral" are often used. the same facts are always meant.
Who needs a credit without schufa?
Interest in a credit without schufa have naturally above all persons, who already dispose of negative schufa entries. Most of the time credit prospective customers, their creditworthiness deficiencies shows. Sometimes such credit is requested because further borrowing is intended and the schufa file is to remain "unencumbered" despite additional credit, in order not to worsen credit opportunities. Perhaps the personal experience of a credit rejection "because of the schufa" motivates to look for a credit without schufa.
If you have any doubts about your own schufa quality, however, it is advisable to first check a self-disclosure to obtain information from schufa in order to find out which data are actually stored. once a year, there is even a right to free information. In view of the enormous amount of data, it is not uncommon for schufa data to be incomplete, outdated or incorrect – for example, due to name confusion.
With a schufa error there is of course a right to prompt payment correction. In some cases, a schufa problem can be easily solved in this way. A credit that is neutral in terms of credit rating is then superfluous.
How do you get a loan without schufa??
loans without schufa are usually not offered by german banks, they are only available through credit intermediation. Serious credit offers are often loans from Swiss banks that specialize in this type of business and use credit intermediaries as a sales channel. that’s why people also talk about "swiss credit.
swiss banks as foreign institutions do not belong to the german schufa system. For this reason, no schufa query takes place for credit inquiries and the credit is not reflected in the schufa file. It is insofar actually schufafrei or schufaneutral.
However, schufa-free in this case does not mean that no credit check takes place. It is – in the absence of other data – often even particularly carefully. Even if you want to have a swiss credit or another credit without schufa, you must – as with other credits – be able to prove that you are able to repay the credit.
For the increased credit risk are interest surcharges to pay. A credit without schufa is usually more expensive than one with schufa. freedom from schufa has its price. Nevertheless, it is worthwhile to compare such offers as well.
What to look out for in a credit that is free of credit history problems?
Particularly with the credit without schufa one should look particularly carefully. Unfortunately, there are also some companies in this special credit business dubious providers, who want to earn money with the financial distress of others. The granting of a loan is often not intended at all. Caution is particularly advisable:
- Prospective borrowers have to pay in advance: some offers require borrowers first in advance payment go, if they want to receive the credit. upfront fees for credit checking and approval or costs to be borne for sending documents are unusual, in some cases inadmissible, and almost always indicate a dubious provider;
- credit is only available in exchange for additional products: sometimes credit is only possible if additional financial products be concluded. these then have little to do with the actual purpose of the financing. It’s mostly about insurance or gray capital market products – in many cases overpriced or associated with special risks. The credit is then the lure to get financial creations to the man (or woman) that no one else wants;
- Expensive home visits and consultation: the consultation per home visit or via an advice hotline is a condition for the granting of credit. For the "consulting service" a compensation demands without which the credit is supposedly inaccessible. Here only with the consulting model is to be earned.
Beware of black sheep
Often one tends in the emergency to accept an offer, whose conditions and contract conditions are actually hardly bearable. Especially dubious providers like to take advantage of this "hardship". Therefore, a contract should never be signed out of necessity without first knowing the terms of the contract.
Are there alternatives to the credit without schufa??
1. pawn credit
The pawn credit is a "classic" form of credit that has somewhat gone out of fashion. It works quite simply: the pawnbroker grants a loan and receives a corresponding collateral "valuable" pawn. If the loan is repaid as agreed, the pledge is returned. Otherwise, the pawnbroker is allowed to use it and thus "hold himself harmless".
Since the lender already holds his collateral in his hands, spare the otherwise usual credit check. No schufa information is required either. The pawn credit is a "real" credit without schufa. However, the term is usually only a few months, it does not offer more than a bridge.
2. Short-term or small loans
Even more short-term are short-term or small loans. These are credits for a few hundred euros with a term of a few weeks, maximum three months. They are available from specialized online providers. The schufa is queried here, but the criteria are less strict than for "normal" loans. Such a loan can also only temporarily plug financial gaps until the next salary is received.
What to do when credit grows over your head?
Often, a credit without schufa is especially in demand when the debts are already getting out of hand threaten. Borrowing is made easy today and when more and more loans pile up, even manageable amounts can become a problem with each individual contract.
At some point, the "cumulative" installment burden is no longer bearable. And many a borrower has already lost track of his obligations. A credit-free loan is then supposed to bring the solution to an acute debt problem.
As a rule, however, it does not solve the problem, but only exacerbates it. Even if the loan comes about, it ultimately means only a further installment obligation. The next financial bottleneck is then pre-programmed.
It is better to bring order into one’s debts and re-establish sound finances. This can often be achieved by rescheduling existing loans and combining them into a new loan with rates that are adjusted to the borrower’s financial capacity.
If you cannot manage this on your own, you should not be afraid to seek professional help from a debt counseling service. If you can get a grip on your financial situation in this way, it is always better than the last resort of private insolvency.
