This article contains neutral researched information about a small payday loan that can be applied for without private credit bureau query. We so often in the lending business also face dangers, cheaters and fraudsters.
You must be able to distinguish these from reputable loan offers if you want to apply for and take out a small payday loan without private credit bureau safely and without falling into the cost trap.
What does small credit actually mean without private credit bureau?
The term small payday loan without private credit bureau refers to a product that is usually made available up to a maximum of USD 3,500 and for which information is not obtained from private credit bureau before a loan approval is given, and a report is sent to private credit bureau after approval.
Since all credit institutions in Germany are members of the protection association for general credit protection (private credit bureau), a small payday loan without private credit bureau is only available from a foreign bank or from a private lender.
Reasons for a loan without private credit bureau
The regular loan offer is so diverse and sometimes with such favorable conditions that the need to take out a small payday loan without private credit bureau is not obvious at first glance. Regardless of whether the institutes offer their credit products at an interest rate that is independent of the creditworthiness or on a condition that depends on the creditworthiness of the applicant: In any case, one of the basic requirements is that the applicant must have an unobjectionable private credit bureau.
Not every private credit bureau entry leads to a loan refusal, but certain notes such as canceled loans, reminders and often unredeemed direct debits can trigger a loan refusal. The absolute no-gos include the taking of an affidavit (oath of disclosure), existing salary seizures and pending or ongoing bankruptcy proceedings. However, the latter hard facts are also a reason for exclusion for most credit intermediaries.
Small credit without private credit bureau: Be careful when choosing the intermediary
A look at the Internet makes it clear that countless brokers are active in Germany that offer credit without private credit bureau. Even if there are a few reputable addresses among the agents, some of whom have been active for more than thirty years and have earned a good reputation, extreme care should be taken when applying for such a product.
Many intermediaries charge a fee even if the desired loan cannot ultimately be arranged; Consumer advocates therefore urgently warn against paying in advance. According to reports of damaged consumers, many companies seem to be significantly more or even only interested in a commission than in helping the loan seeker out of their financial misery.
The small payday loan without private credit bureau is associated with various disadvantages and risks even if a reputable broker is involved. The disadvantage is the interest rate, which is usually well above the price of a regular loan.
Even if in other countries such as Switzerland, where the private credit bureau-free loans mostly come from, the private credit bureau does not exist and therefore a loan without private credit bureau represents the normal case, every foreign institute knows that a German consumer usually only needs one private credit bureau-free credit asks if its credit rating is under strain. Accordingly, higher risk premiums are necessary, which make the small payday loan expensive without private credit bureau.
But the economic risks are far more extensive than the additional price. Anyone who has never been able to service a loan and therefore had to accept a loan termination or who is burdened with payment orders or other negative features should consider carefully whether they would like to take on a further loan liability.
In the case of unauthorized private credit bureau entries, it is possible to request a correction, and in all other cases the debt counseling should be activated instead of a credit broker if financial problems are no longer solvable.