Credit Bureau information is one of the most well-known hurdles that have to be overcome in the course of borrowing. It is used to determine whether a bank customer already has ongoing obligations and also provides information on whether delays have already occurred in credit transactions that have already been completed.
A negative Credit Bureau entry can therefore quickly lead to a rejection of the application, which is why quite a few customers are forced to look for a loan without Credit Bureau.
Banks generally carry out the Credit Bureau information. A negative Credit Bureau entry may be compensated for by a relatively high income, but this is usually accompanied by higher interest rates, provided that these are calculated depending on the creditworthiness. For a loan without Credit Bureau, it is necessary for good or bad to leave the familiar halls of your own bank in order to look for alternatives on the credit market.
The best-known representative of Credit Bureau-free loans comes from Switzerland. The so-called Swiss loan is a typical loan without Credit Bureau with all advantages and disadvantages. Not only is no Credit Bureau information obtained, but no Credit Bureau entry is generated.
This is particularly important for customers who are planning to take out a larger loan in the short to medium term, but who do not want to jeopardize or make it more expensive through an existing loan. After all, if a Swiss loan has been taken out, your own bank will generally not find out about it.
However, the typical Swiss loan comes with restrictions that the borrower can hardly or not at all influence. The loan amount is fixed from the start on a certain amount, which usually ranges between 3,000 and 4,000 euros. In addition, the interest rate, installment amount and term are fixed and do not allow any changes. Since Swiss credit is officially not available in Germany, credit intermediaries are needed.
It is also necessary that the applicant has a regular income. This is the only way to secure the loan without Credit Bureau, which is why the requirements are handled particularly strictly. The self-employed and freelancers therefore rarely have the chance to get a loan from abroad, as their income does not meet the required level of regularity.
Comparisons should also be carried out conscientiously. Special attention should be paid to the processing costs of the credit intermediaries. The amount is only one point to be checked, it is also important to know when these are collected. There are indeed cases in which credit intermediaries can be reimbursed for rejected applications with comparatively high sums.
The effective interest rate, in which all cost-relevant factors are factored in, even for a loan without Credit Bureau, also plays a role that should not be underestimated in Swiss credit despite the fixed terms.
Since the interest on such offers is usually a lot higher than on comparable installment loans, the Swiss loan is, for example, very well suited to repaying expensive loans such as an overdraft facility. Larger investments cannot be made with this due to the limited loan amount.