Small credit without private credit – are there restrictions?
Without a private credit information, it is certainly more difficult to get a loan – no question. However, small loans usually pose little risk to the bank, which is why such loans are often given to borrowers with a lower credit rating. Mostly, however, banks can charge extra for this service – under certain circumstances, a small loan is also available without private credit information on favorable terms.
Which special features have to be considered?
In the case of a loan with a negative private credit information, it is basically the case that banks are more distrustful than regular creditors with high credit ratings. But it does not necessarily have to be that a negative entry at the private credit also means a bad credit rating. It is already sufficient for a short-term payment default – for example, in a mobile phone contract – to get a negative private credit entry. However, if the outstanding claim has been settled, the entry will be deleted after 3 years at the latest.
However, small loans up to a sum of 1000 euros can be easily set up. Many banks have sometimes specialized in clients who have a bad credit rating but urgently need liquidity. Here, however, the banks usually punish with high interest rates. The higher risk of default makes a loan without private credit information mostly an expensive affair. But that does not have to be the case in principle. If the borrower has a good income, the high interest premiums are not available anyway.
A high income gives the bank good seizure possibilities in case of doubt. The exact seizure limits are based on § 805 c of the Code of Civil Procedure and are also dependent on the number of dependent persons of the debtor.
The alternative guarantee
Normally the income is average. The seizure exemption levels are set relatively high – if the debtor, to all misfortunes, also has people for whom he is in debt maintenance, then the initial position of a bad credit rating can not change much at first. It continues to play an essential role for which the microcredit is used.
Consumer goods are very unpopular with banks, which is aggravating the need to obtain the appropriate credit. Nevertheless, there is the possibility of a guarantee. In this case, a so-called guarantor assumes the liabilities for the debtor in case of doubt, provided that he becomes insolvent.
This reduces the risk of commercial banks enormously – they are therefore willing to give a small loan. For this, however, at least the guarantor should have a sufficient solvency. Of course, this is initially a high risk for the guarantor. For urgent small loans, the risk is ultimately relatively low, because the loan amount is also correspondingly small.
Furthermore, small loans from private individuals can be purchased on numerous Internet portals. As the name suggests, private individuals allocate excess liquidity to others in dire need of money.
The interest here are usually lower than a small loan from the house bank. Also all modalities can be freely negotiated with the private creditor. In any case, an extensive credit comparison should be carried out. Here you have to look at the annual percentage rate, which gives useful information about how expensive a loan really is. Such comparisons can be done very well on many specialized websites on the internet.
What is a “small loan”?
A legal definition of the term “small loan” does not exist. In general, this means loans up to an amount of about 5,000 euros. For these loans, the term “consumer credit” is often used.
What is the private credit?
In Germany, there are a number of credit bureaus which collect data on companies and private individuals and pass them on to interested parties for a fee. private credit Holding AG has established itself as the most important service provider for private consumers. The private credit stores traces of its existence as a participant in the economic life of almost every German or foreigner living here.
The private credit knows the name, address, date of birth and in the context in which this data is communicated to them, the financial obligations, any requests for a loan and details of how to handle existing contractual relationships.
In addition, the private credit collects from the publications of all German courts, the notices of legal action against the persons and companies stored in her.
Free annual private credit information
Everybody has the legal right to ask the private credit once a year about the stored data. On the clear private credit portal this free annual information copy and can be ordered easily. You will need a copy of the identity card or passport along with a registration certificate that can be sent or uploaded.
You should definitely get this information and expect a processing time of 4 weeks. From the data collected, private credit creates a so-called credit score, which is of considerable importance for the granting of credit. One should check its private credit information for its correctness and correct possibly wrong entries.
Anyone reading the relevant offers on the Internet portals should not believe that this always means that no private credit request is made. Schaffa is usually called in to lend, but the granted credit is not reported to Shufa.
So you should know exactly what is stored there, if you want to take a new loan.
What is there to consider when borrowing?
First of all, you should be completely honest with yourself and make a cash fall. The monthly fixed income must be compared to the monthly fixed expenditure. The monthly expenses consist of rent, telephone contracts etc, insurance, public transport tickets and all other undeniable costs. If the rest is enough for a livelihood and an additional burden of a new loan installment, one should again consider carefully whether the planned purchase is really necessary.
In the case of non-contractual loan settlement, it is possible for the lender in Germany to seize the wages of the borrower. However, the legislator protects the debtor through seizure rights. These can be taken from very clear tables, which are available on the Internet. Only the amount that is attachable, is good for the credit!
Anyone looking for a loan without private credit believes or knows that his private credit information has an entry that is harmful for the granting of credit, a so-called negative feature.
Most of the time, however, this alone is no reason not to get a loan. The loan officers always pay tribute to the individual case. That’s why it’s important to know exactly what the private credit has stored. A single debit or a second reminder alone is usually not a big problem. Open receivables or even titled receivables (receivables that have been legally confirmed) are an obstacle to lending with or without private credit.
Factors for the loan commitment
Another important factor in the granting of credit is always underestimated: the stability of the place of residence. Usually moving in the last five years is tolerated, but the constant change of residence makes lenders skeptical. Times without a permanent residence are a hindrance to obtaining a loan.
Creditworthy is who
- is in a permanent, unfinished employment relationship
- earn an income in excess of the distraint
- lives in the same place for years or only moved once
- was not noticed in his past participation in economic life as an addressee of judicial demands.
Negative features in the private credit information weigh very differently. If the claim is paid in a dunning notice of less than 2,000 euros within six weeks, even the premature cancellation of the negative feature is possible.
Collateral and guarantee
There are only loans for collateral. The classic form of securing a small loan or consumer credit is the salary assignment. Depending on the purpose of the loan, however, one can also imagine other forms of collateralization.
Surely the most promising option is the guarantee. A second person is responsible for the contractual processing of the loan or acts as the second applicant. Borrowers and guarantors should be very sure of their loyalty and responsibility. With money the friendship ceases to be known, sometimes also the love or the kinship.
When buying a used car, the dealer can often help with a loan brokered by him based on the mortgage of the vehicle. The same applies to other high-quality goods.
The importance of rescheduling
Not a few who are looking for a “small loan without private credit”, in fact, need a consistent rescheduling. You are overindebted or have arrived at the overindebtedness limit and have now received the first reminder or already the loan termination or termination of the overdrawn current account.
Above all, fast action is required here. Anyone who has come into such a situation should not be afraid to seek help. These make various debt counseling or you turn to a credit intermediary. Anyone who only needs a debt rescheduling, ie a summary of his obligations in a new loan, but in principle still considered creditworthy, should use the services of a credit intermediary.
The industry, which still has a bad reputation, has now become a helpful service provider and can solve many problems – assuming the debtor is involved – correctly. Under the heading “rescheduling” relevant companies offer their services: definitely you should take a look at the imprint!
Only portals based in Germany are trustworthy, as they are subject to the supervision of the competent federal authority. You also have to check the imprint for details such as “leased and operated”.
What is needed for the application?
If you submit a loan application, you should keep a copy of the personal documents, the rental agreement, and the last salary statement with the balances of the last few months. The negative feature in the private credit should be explained.
Even credit offers “without private credit” are received and processed online today, and wherever the request cost nothing, you should just try it.
All offers on the basis of contractual combinations such as credit agreement and term life insurance (very popular) should be reset and only take into account when you have consulted with a trustworthy person and find nothing better.