Without a suitable credit rating, it often turns out to be difficult. In banking, creditworthiness is understood to mean the solvency and trust in the customer. Especially in the case of existing debts, a negative entry in the Credit Bureau or no existing employment relationship, one speaks of a lack of creditworthiness. But this does not protect you from repairs or payments, so there is no way around a loan. But without creditworthiness there are only a few ways to get a corresponding loan.
Banks and credit institutions – no credit without creditworthiness
In such a situation, if you turn to the various banks and credit institutions for a loan without creditworthiness, you will often find that you are no longer a welcome customer. In the case of credit inquiries, the credit company will automatically check the creditworthiness of the prospective borrower. If the bank determines that the customer has no credit rating, a loan is already rejected. Nevertheless, it is possible to get a loan with no credit rating.
Credit without creditworthiness – guarantee as a solution?
If your credit rating is not sufficient to get a loan, you can improve your chances by bringing in a guarantor. A guarantor is another person who carries the loan application. If this person has sufficient creditworthiness and no other negative entries, there is usually nothing to prevent a loan.
The difficulty usually lies in finding a willing surety. Since the guarantor is also included in the loan agreement, the latter is also liable for the fulfillment of the contract. Above all, this means that the guarantor must vouch for his assets if the actual borrower is unable to make the loan payments. A guarantor therefore needs a good and above all a trusting relationship in the willingness and solvency of the potential borrower.
Once a guarantor has been found, the guarantor, like the borrower, must bring the relevant documents with them to the respective bank or credit institution. In addition to three current payslips, this also includes an identity card, which can prove the identity of the guarantor perfectly. After both the guarantor and the borrower have signed the loan agreement for the credit without creditworthiness, the loan is processed and usually approved in the shortest possible time, since the guarantor’s creditworthiness is used for the calculation of the credit risk. This means that a loan can be approved without a credit rating if a correspondingly solvent guarantor joins the loan agreement. This usually comes from a close circle of friends or relatives, so that the most important factor here is trust in the borrower.
Accept direct credit from private individuals
Another way to get a loan with no credit rating is a direct loan from a private individual. The existing Internet platforms for such loan applications fall as a rule from the grid, as they check the creditworthiness of potential borrowers as thoroughly as the banks and financial institutions do this. Therefore, it is often not worthwhile to make an inquiry via these platforms without creditworthiness.
So there remains only a personal loan from a person in the immediate vicinity. It should be ensured that the loan request for the loan without creditworthiness is only brought to those who can provide the required loan amount without their own restrictions. Once you have found a potential lender, the modalities of the loan should be specified. The best way to do this is to use a loan contract for a personal loan. This contract first contains the names of the people involved. Furthermore, the amount of the loan should be listed exactly.
Another point of the loan agreement for the credit without credit rating should concern interest. It has proven useful to choose the respective interest rate of a savings account as the minimum interest rate. Thus, the lender makes at least no loss from the loan. The higher you set the interest rate as a borrower, the higher the chances are that the lender will respond to the offer. Finally, the repayment modalities are entered in the loan agreement for a credit without credit rating. It should be determined whether the amount is due on a specific key date or whether the loan amount is to be reduced through regular payments. When paying in installments, the respective installment amounts should also be noted in the loan agreement.
If the borrower and lender sign the contract, it becomes effective and the credit without credit has been concluded. The agreed loan amount should either be handed over to witnesses and acknowledged by the borrower, or carried out directly via electronic payments. If a meaningful name is used when transferring the loan amount, “Credit for [name]” for example, you are on the safe side as a lender because you can prove that the money has been handed over.
Even if all of the above are primarily for the security of the lender, these modalities should usually be suggested by the borrower. This ensures the necessary security in advance and can convince the lender of their own intentions. Thanks to such measures, it is possible to convince potentially undecided lenders of their willingness to pay and to provide important arguments for granting a loan without a credit rating.
Beware of black sheep on credit with no credit rating
Many companies use dubious advertising messages to advertise loans with no credit rating. The plump promises are intended to convince the borrower of the certainty that they will guarantee a loan from these intermediaries. In some cases, however, you are required to pay a certain amount to secure the loan without creditworthiness or to receive important documents.
If you pay the amount in the hope that there is a loan agreement, you will usually be disappointed. All too often, the important documents only turn out to be an application for credit brokerage. Real credit without creditworthiness does not come about with these companies either, because no credible borrower’s creditworthiness is not accepted by any reputable institution as the basis for a loan. In the end, the borrowers often pay not insignificant sums for an underperformance or an underperformance.