Why a small loan without credit bureau?
In Germany credit bureau is the largest credit bureau and an important part of the credit system. If you need a small loan, you can not avoid a credit bureau exam, most people think. That’s not quite true: as consumer advocates and tech companies criticize the credit bureau for their intransparent project, a huge market for small loans without credit bureau has formed.
Instead of resorting to an opaque rating procedure, credit providers use a proprietary process to check their creditworthiness.
You can do your part by bringing in your own collateral or a second applicant. We will show you how to secure a small loan with favorable conditions without having to have your credit bureau checked.
What is a small loan?
Under a small loan is a loan with a sum between 500 and 10,000 euros. Although it is usually issued for free use, many consumers in Germany apply for a small loan to bridge temporary bottlenecks. Mostly a small loan is equivalent to an installment loan. This means that he pays interest at a certain interest rate and has to repay it at constant rates. Nevertheless, it is possible to take a small loan under different conditions. It is also characterized by a short duration, which is usually between 6 and 24 months. Especially with small loans, alternative loan providers to banks are ideal.
Start credit comparison:
Requirements for a small loan
As with any loan, there are a number of admission requirements for small credit:
- The borrower must be of legal age
- He must have a permanent residence in Germany
- He must have a German checking account
- He must prove his creditworthiness (varies according to his professional status)
For a traditional loan credit bureau information is required. In the case of a small loan without a credit bureau, it is your task to prove your creditworthiness by alternative means. This is done either by proof of a correspondingly high income, by additional collateral or a second applicant.
A small loan without credit bureau: how does it work?
Credit bureau is Germany’s largest credit bureau with records for over 60 million private individuals. All credit and financial institutions in Germany rely on credit-bureau data. However, there are numerous scenarios in which even a wealthy person gets a bad credit bureau score. For example, a millionaire heir could have a chronic poor payment record. Due to the missed payment deadlines of the invoices, negative credit bureau entries can be found in his file.
A classic bank would refuse such an applicant. From a rational point of view, however, it could still be a creditworthy consumer, who can serve a small loan over a maximum of 10,000 euros without any problems.
In addition to this drastic example, there are numerous other examples of worthy borrowers with the bad credit bureau. For example, an entrepreneur who has gone through a personal bankruptcy can now be financially well or very well placed. However, since a private bankruptcy is stored for several years in the credit bureau, he will continue to have a bad credit bureau score and get no credit in Germany – even if he makes good profits with his company every month.
A special market has formed around this extensive group of people. Private lenders or foreign banks that do not cooperate with credit bureau take on these special cases. In this case, it is up to the borrower to prove that despite his bad credit bureau he can make use of favorable microcredit. He can do this with proof of income, profit and loss accounts or collateral. The lender will now make a case by case decision, even if the application process is standardized.
Instant confirmation with the small loan within three minutes!
Anyone who needs a micro-loan immediately must forego a loan with credit bureau exam anyway. The normal review process for a traditional bank takes up to 14 days. On the other hand, with us you can expect an answer within three minutes.
How does it work?
On our platform you will find a standardized procedure that involves many lenders. Within this process, relevant information is collected. These include income, expenses, family status and a potential second applicant. If the information is faithfully reproduced, you can count on it within three minutes. In the next step you submit your documents. These are checked for accuracy. If the data match, you will get your loan paid out.
Good reasons for a small loan without credit bureau
There are many good reasons for taking out a loan. Whether you are in an emergency situation or simply apply for a small loan to increase your standard of living. However, there are many other reasons for choosing a loan without a credit bureau exam. The following overview should give you an idea of whether a small loan without credit bureau is the right choice for you.
Several loans already taken: Your open credit is entered in your credit bureau register. If you already have several open credits that will most likely have a negative effect on your credit bureau. If you would like to take out an additional loan, you probably have to expect bad credit conditions or a cancellation. However, if you can prove a good credit rating despite the current loans, you will also get good credit terms for a loan without credit bureau.
Negative credit bureau entries: In the past, events occurred to you that were negatively noted in the credit bureau. For example, you received a dunning notice for a forgotten invoice. If you still want to take out a loan, a small loan without credit bureau is probably your only option.
Strategic financial planning provides protection for the credit bureau: Maybe you are planning to finance a property in the coming years. With such large financings you probably can not avoid a domestic bank. If you already have open credits, this could cost you a lot if you have a lot of funding. Even though credit conditions are only slightly worse, this can amount to a few thousand euros for mortgage lending. If you want to save your credit bureau score for the time being, a cheap microcredit without credit bureau could be the right choice.
They fall into a “risk group”: risk groups in terms of loans are about unemployed, students, self-employed, freelancers or retirees. For all these groups it is difficult to get a normal credit bureau credit. A cheap microcredit without credit bureau can be a real alternative for these groups.
The traditional application process takes too long: if you submit a loan application to a bank that rates your credit rating on the basis of your credit bureau, you will have to wait for a longer process of up to 14 days. Through our platform, we can give you an instant confirmation within three minutes. In some circumstances, the loan amount will be paid out within 24 hours.
Advantages and disadvantages of a loan without credit bureau
The small loan without credit bureau brings enormous benefits. An overview of potential advantages and disadvantages should help you to decide whether this loan option is right for you:
- No good credit bureau score necessary
- Even without income favorable loan conditions possible
- Fast application process
- Cheap loan conditions possible
- The own credit bureau is relieved
- Significantly more documents must be submitted
- Often, a second applicant must be consulted
- The terms of the loan can fluctuate