If you need money immediately and quickly, but your Credit Bureau is negative, you will often face the problem that a German bank or credit institution will not grant you a loan. If the bank has too many negative Credit Bureau entries, the risk of default that always exists when a loan is granted is simply too high.
What is instant loan
This is where companies from abroad, usually from Spain, the Netherlands, Switzerland or Austria, are increasingly crowding into the market, which can provide customers with instant credit without Credit Bureau. These instant loans are usually consumer loans and installment loans, as are also issued by German banks with a Credit Bureau query.
Here, too, loan amounts of up to $ 3,600 are usually offered, and for two people in one household, up to $ 7,200. But an instant loan without Credit Bureau has both advantages and disadvantages.
The big advantage is that Credit Bureau is not queried here. The reason is not that these banks and credit institutions shy away from the risk, but that they are not a member of Credit Bureau and therefore do not receive any information. Since the banks are fixated on minimizing costs, they avoid membership in Credit Bureau, because this is not in vain for their members.
But: A test similar to Credit Bureau is carried out and there are a number of award conditions. The test consists of proof of income and proof of net household income. This is fairly easy to manage, because here, on the one hand, the expenses of a household, evident on the account statements or on rental contracts and contracts with suppliers of electricity and gas, and the income are requested by means of the last pay slips.
Immediate loan without Credit Bureau
Payroll is also one of the prerequisites that must be met. Because an immediate loan without Credit Bureau information is only available to those who receive a fixed salary from a permanent job that has existed for more than one. Anyone who has just started a job (or several months ago) does not meet this requirement. The salary or wages must also go to a German current account – the meaning behind it is that if the borrower should fail, it can be attached if necessary.
In addition, the applicant for an instant loan without Credit Bureau must be at least 18 years old and a maximum of 55 (East) / 58 (West) years old, and must have performed basic military service or community service (or a comparable alternative service). Since conscription is to be suspended in the near future, this requirement can also be expected to disappear. German citizenship is mandatory.
There are also conditions according to which the applicant’s household must not be too large: Many people in one household increase the net household income (and above all the garnishment-free allowance) – and thus the risk of the lender!
An immediate loan without Credit Bureau is not necessarily more expensive than an installment loan from a German bank – the higher administrative effort for viewing the documents and for the risk of default can often be paid with an interest surcharge of 2 – 5% on the usual market interest rates in Germany.
The advantage of an instant loan without Credit Bureau information is that the interest is higher, but the costs are fixed. This means that fixed monthly rates that do not increase over the entire term are agreed upon when the transaction is concluded. The terms here are usually 24-36 months – for example, if you take out an instant loan without SCHFUFA information at 3,600 USD with an effective interest rate of 6% over 36 months, you will have to repay 3,816 USD in monthly installments at 106 USD.
Nevertheless, even if you urgently need money, you should be careful: the banks that grant these loans are not dubious, but unfortunately many credit intermediaries on the Internet or in daily newspapers: These promise instant loans without Credit Bureau for everyone, even though they are only as intermediaries occur and ultimately the bank always decides whether someone gets a loan or not. Nevertheless, fees or commissions are already charged for this – even with a successful conclusion there are often excessive fees for the “successful completion”.