A negative Credit bureau entry means that loans from Agree banks are difficult to take out. If there are multiple entries or a hard negative feature, consumers almost never get a loan in Germany. Borrowing without Credit bureau from a bank in Switzerland is a possible alternative, since the banks based there, as non-members of Credit bureau, cannot obtain any information from the loan protection agency.
The basic requirements for a loan without Credit bureau information are stricter than the conditions for lending by Agree banks. For example, federal financial institutions demand a significantly higher minimum income than German credit banks, while at the same time they do not count regular, long-term secured government payments such as child benefit as part of household income.
Furthermore, most Capital banks only grant a Credit bureau-free loan to employees aged up to fifty-eight. Most German borrowers of the Capital banks take out the loan on the basis of existing negative entries with Credit bureau, few customers opt for the loan from Switzerland in order to prevent the deterioration of the Credit bureau score for a planned further borrowing, because in addition to obtaining the Credit bureau Information also does not register borrowing with Credit bureau.
The loan amount for a loan without Credit bureau is usually at most 3500 USD, few banks have increased the maximum amount to 5000 USD. It is not possible to extend the limit by taking two Credit bureau-free loans from different credit institutions because the loan payment has been registered with the Capital , a protection facility comparable to that of Credit bureau.
While the conditions for paying out a Capital Credit bureau-free loan are similar at all federal banks, the interest payable differs considerably depending on the provider. For the loan without Credit bureau information, a comparison of the debit interest to be paid is important so that the borrower can find a cheap loan.
The need to actively look for a cheap provider is reinforced by the higher interest rates payable for a Capital loan without Credit bureau information compared to classic loans. Borrowers with negative Credit bureau entries willingly accept a slightly higher interest rate for a loan without Credit bureau information, while an excessively high surcharge is annoying and avoidable.
For a loan without Credit bureau information, it is easy to compare the loan interest online using a loan calculator, because like all loan providers, Capital banks in Germany must also specify the effective annual interest rate. In addition, when making a loan comparison, borrowers make sure that they are not charged any preliminary costs for processing a loan application in accordance with the statutory provisions.