Due to the low interest rates of the European Central Bank, the number of loans from private individuals is also increasing. In addition to traditional loans for their own mortgage lending or for the new car also increases the number of installment loans, ie the loans that are used km rule for consumer goods.
Creditworthiness and impact on lending
- Alternative foreign countries
- Requirements and restrictions
- Abroad or Germany?
- The foreign credit, alternative with bad Schufa?
- What you should know fundamentally
- Differences in currencies
- Foreign credit without credit check?
- How the application for foreign loans expires
- Beware of black sheep
Whether financing directly through the partner bank of the respective company or directly at one
Bank offering loans. The number of installment credits in 2013 already rose to a total of 7.74 million for the year , which means an increase of 40,000 units or 0.5% compared to the previous year. But not every loan request can be decided positively.
Creditworthiness and impact on lending
While the consumption behavior of borrowers has increased in recent years and has given the economy a plus, the lending guidelines of the banks, especially the classic Volksbanks and savings banks, have become stricter. In the past, as a longtime customer, one could rely primarily on the personal knowledge of the bank adviser , so the creditworthiness of the respective customer becomes more and more important.
The evaluation by so-called credit bureaus plays the essential role. In order to provide the intermediary bank with a precise overview of the financial circumstances , these companies store all their financial activities and thus determine a so-called scoring.
Good to know:
This scoring is nothing more than the ability of the eventual borrower to settle accumulated debts or financial obligations. However, only the expenditure situation is actually recorded.
For example, a person who has a loan to repay has a lower rating than someone who has no credit but may earn worse. Especially with banks that do not have a direct customer relationship, targeted loans are granted less frequently with poorer credit ratings .
Alternative foreign countries
In the event that a financial emergency occurs in spite of current loans and regular repayment, which must be served in the short term, there may be a credit rejection. Since almost all German banks carry out this credit check the potential borrower only the view abroad. With the so-called “Swiss Credit”, for example, a request can be made to a foreign bank that primarily focuses on economic power and does not request a query from a German credit agency.
These banks are located mainly in Switzerland or Lichtenstein and evaluate the inquiries, for example, based on the submitted salary statements and bank statements of the borrower . Thus many loans denied by a bank in Germany are made possible by a foreign bank. The request can be made either directly with the bank or the customer turns to a credit intermediary.
Here, however, pay attention to the seriousness of the provider. Prestigious brokers promise no loans out of the blue and the agency fee, which is usually about 6% of the loan amount, is due only with a successful conclusion.
Requirements and restrictions
These credits are usually offered “schufafrei”, ie in addition to the lack of information retrieval at a financial statements and a regular installment payments no data to German credit bureaus passed .
The amount of these loans is normally limited to a maximum of € 5,000 and, compared to German loans, has a higher interest rate , which serves the banks to compensate for any defaults due to a bad credit rating. Furthermore, only employees in an employment relationship can apply for such a loan, as well as a proven net salary must be demonstrated. This varies from bank to bank.
Abroad or Germany?
In general, credit inquiries should primarily be clarified with a German bank or one’s own bank. A good bank advisor helps customers in difficult times , whereas foreign loans should only be the last step. This is then highly recommended.
The foreign credit, alternative with bad Schufa?
What you should know fundamentally
Foreign loans are loans that are not requested in your own country. In principle, every German or Austrian is able to apply for a loan outside their own living and living area . It does not matter if it is one, for example credit in the Euro currency, or if it is a Swiss Franc loan.
However, it should also be noted that the legal seat of the credit company plays no role. For example, a bank in Germany has its headquarters in Berlin and at the same time has a subsidiary in Rome.
Differences in currencies
Many tend to borrow in Switzerland. In addition one should know that in Switzerland preferred Swiss francs loans are granted. The reason is quite simply that the Swiss franc has a higher exchange rate than the euro.
Thus, depending on the exchange rate, the repayment can make a big difference that can cost you dearly. One should also apply for a loan from Swiss banks, always on the euro as a lending currency.
Foreign credit without credit check?
Contrary to the practice of German banks and other credit institutions, there is no Schufa in Switzerland or France, but one should know that many of the German banks are linked by a banking network. Even if no Schufa modeled on the German Schufa exists, the respective credit institutions have the ability to verify the state of the credit rating .
So you should not try to keep the banks a secret. These also have the necessary information to get the credit status of a client. In addition, it must be said that it is not impossible, despite a negative Schufa entry, to be granted a loan in another country. The difference is that banks differentiate more exactly how the negative Schufa entry came about.
How the application for foreign loans expires
Thanks to the internet, you no longer have to get on a plane or train to apply for a foreign loan. Not least credit intermediaries are available for this purpose. It goes without saying that these are not activated without consideration (usually they receive a certain percentage of the credit).
However, this also works if you apply directly to the lending institution, which scans the documents and sends them to them. Although the behavior of these institutes is such that the more complete the documents, the more chances you have of obtaining a license. Also, the hint, for which one needs the credit, should be quoted, which will always prove to be helpful.
Beware of black sheep
Of course, these are also available in the credit industry. Caution should be exercised, especially if one or more of the following occur:
- Practically anyone who makes an application is also granted (or at least promised …)
- the mediator (s) require a fee in advance, without which they do not even become active
- An allowance will be charged, which is also due in advance, before the application is even still being processed
- Extremely high interest rates, which I can call usurious rates, are demanded for the loan