Loans for Private Consumers
April 2, 2019
Loans for private consumers are among the products offered by most banks in Germany. Their assignment is linked to certain criteria. These include, for example, a permanent employment, sufficient income and not too many open financial obligations.
As a rule, banks also collect information from the private credit. If you have negative entries there, it is difficult to get a loan. Often, you have no option but to apply for a cash advance without private credit.
Cash credit without private credit- what options are there?
A cash credit without private credit is a loan in which the lender waives the request of information at the private credit. This is a common database of the German banking industry, in which the financial data of the majority of German citizens are stored. There are German credit institutions or credit intermediaries who do not seek information from the private credit. When researching on the Internet, you can easily find the appropriate companies.
Most of these companies work reputably and reliably. It is best if you read online customer reviews of the provider concerned before signing a contract. You also have the option of requesting foreign banks for a loan. Banks that are not registered in Germany do not cooperate with the private credit, since this is only responsible for the territory of the Federal Republic. Particularly well-known in this connection are the Swiss credits. They are issued by Swiss banks without private credit information to German citizens. In doing so, the banks use the help of German credit intermediaries.
Are there any disadvantages?
With a cash loan without private credit, the risk for the lender is higher than for a normal loan. As a result of this increased risk, such loans are more expensive than loans with a private credit request. The so-called Swiss Credit are small loans, which are only awarded up to an amount of 3,500 euros. In many cases, this sum is not enough. In addition to the actual cost of the loan, you also have to take into account costs for the agent, as they of course also want to earn a profit.
You should also note that even for non-private credit loans, the lender checks the creditworthiness of the applicant. To do this, you must present a current income statement, such as payroll or pension. In some cases, the lender also requests the latest bank statements to assess the applicant’s financial situation. If you earn too little or have a temporary job, it does not help if you apply for a loan without private credit. Then alternatives like a guarantor or collateral are the better choice.