The credit without creditworthiness is becoming increasingly popular and, accordingly, is increasingly being made available. This loan is particularly interesting for people who do not have their own income or do not have enough at their disposal. Likewise for people who are in a financially difficult situation, for example due to existing debts.
Financial flexibility thanks to credit with no credit rating
In times of constantly rising prices, borrowing is becoming more and more necessary. For example, the urgently needed renovation can be financed. Even the kitchen from the special offer, which you can not even afford once, can be set up in your own premises in a few days. The next summer vacation can also be a dream vacation. But not only requests can be realized by borrowing, but also necessary bills can be paid without problems.
Ultimately, the electricity supplier’s annual bill is getting higher and higher. Another loan may also have to be repaid. It only becomes difficult if there is no credit rating. For example, if no employment relationship can be proven, or negative Credit Bureau entries are on the back of the borrowers. In such cases, only a credit with no credit rating is usually suitable, but it is not readily available.
Characteristics and requirements for a credit with no credit rating
The credit without credit rating is characterized by different characteristics. At the top of the list are the often very high interest rates. Direct banks, for example, provide loans that are often associated with interest rates dependent on creditworthiness. In this example, the poorer the borrower’s credit rating, the higher the interest rates to be expected. Foreign banks, on the other hand, which are considered very often, are usually always associated with very high interest rates. The main reason for this is the knowledge of foreign banks that German borrowers often have a poor credit rating and only apply for such a loan because of this.
A credit without creditworthiness also has certain requirements and is therefore not available to everyone. So there is also a Credit Bureau query, at least as long as the application is made through a Cream bank. If there are negative Credit Bureau entries, loans are only granted in very few cases. Most of the time it depends on the amount and amount of the debt. Foreign banks, on the other hand, do not follow any Credit Bureau information since they do not normally cooperate with the German Credit Bureau and therefore cannot view any data. Apart from the Credit Bureau, the age of the borrower also plays a decisive role.
Although pensioners can also take out a loan with no credit rating, certain limits often apply. In addition, the income is important in the decision. For example, borrowers have to prove that they have a regular income of any kind. Notices of approval for pension payments, maintenance claims or social benefits are also accepted, but rated less than employment contracts.
Be careful when taking out a loan with no credit rating
Since there are now numerous providers who promise a loan even with poor creditworthiness, it is becoming increasingly difficult to distinguish serious from dubious offers. As the most important feature when choosing a reputable broker or lender, care should be taken to ensure that no costs are charged in advance.
In addition, commissions do not necessarily have to be in the case of successful brokerage, because credit brokers generally also receive commissions from the banks. It is also important to ensure that not many insurance contracts are concluded, because these are usually not necessary. Only residual debt insurance can be advised.