Non-private credit short-term loans are the only way to obtain credit for many consumers who have not been able to repay their debts in the past in accordance with the contract, and who are therefore negatively affected by the private credit.

Why are private credit loans possible?

For German lenders, private credit is usually the first point of contact for checking the creditworthiness of the customer. Since private credit does not collect data on the economic situation, but only on the client’s contractual loyalty, it enables its contractual partners, above all, to check personal creditworthiness, not economic creditworthiness. This means that it tells contractors how reliable the customer has paid their bills.

From this, it is often possible to reliably determine the likelihood that the borrower will not repay his contract. Although it also saves loans that it has taken up within Germany, otherwise it does not collect data on the financial situation.

private credit-free loans, on the other hand, are awarded abroad. Foreign lenders do not work with private credit. This means that they neither receive nor transmit data from the private credit. However, they use other methods to check the creditworthiness of the customer. As a rule, this is mainly done by determining the financial situation. While the private credit enables lenders in Germany to determine their personal creditworthiness, foreign lenders attach almost exclusively importance to economic creditworthiness.

For whom are private credit-free loans suitable?

Anyone who has accumulated legacies in the private credit does not necessarily have to be a risk for the lender. The negative features in the credit bureau can also result from a past emergency, which the borrower has now overcome successfully. If this is the case, then, above all else, the income must be right: Many lenders assume that the customer earns at least 2,000 euros. The salary should also result from a permanent employment relationship, which usually has to be indefinite.

What disadvantages do private creditfreie credits have?

As loans without private credit information are only offered by foreign providers, a commission is usually due. As a result, the cost of borrowing and the offers are on average more expensive. However, many providers are now present on the Internet and offer at least partially the opportunity to apply for the loan independently online.

Anyone who chooses a mediator, should also attach importance to his seriousness. If these advance fees are required, do not render the costs transparent and require insurance to be taken out without the customer having the credit agreement, it is very likely to be an untrustworthy provider.