For loans granted by German banks, a Credit Bureau request is common, while the guaranteeing is only required in a few cases. These relate to the borrower’s low income or poor credit rating. The guarantor must of course achieve a sufficiently high income and at the same time must not have any negative entries at Credit Bureau. In some cases, lending is possible without a Credit Bureau and without a guarantor, most often via banks in Switzerland.
German Credit Bureau-free loans without guarantors
The most well-known loans without Credit Bureau information and guarantors are the loans granted by pawnbrokers, since in this case the pledge to be deposited serves as the exclusive loan security. Furthermore, employers usually do not ask for guarantees for the granting of employee loans, they do not always make a Credit Bureau request. Less known loans without Credit Bureau and guarantors are partial payments for orders from existing customers.
Most mail order companies make a Credit Bureau request when a new customer places an order with payment in installments, while they determine the internal creditworthiness of existing customers from the customer’s previous business relationship and payment behavior.
Loans via the partial payment function of the credit card are not linked to a new Credit Bureau request when specifically used; however, since this is done before the card is issued, it is not strictly to be regarded as free of Credit Bureau. If people receive Hartz IV, they also get an interest-free loan without Credit Bureau information and without guarantor from the employment agency or in the job center, provided they use it to finance urgently needed purchases.
Loans from Switzerland
Swiss and Liechtenstein banks grant loans without Credit Bureau information and guarantors to applicants with a fixed regular monthly income, which is higher than that required by German financial institutions for the loan approval. The relevant banks cannot make a Credit Bureau request anyway, since they are not members of the German Credit Protection Association.
The banks report the taking up of the loans to the Swiss ZEK, which of course did not collect any information about their creditworthiness before the customer applied for credit in Switzerland for the first time. The loan amount is limited for loans from Switzerland, most banks grant a maximum of 3500 to 5000 USD; the multiple loan application to different Swiss banks is noticeable because of the notification to ZEK.
The Swiss or Liechtenstein credit banks pay the requested loan in USD and have their own account with a German bank. This means that the borrower does not incur bank charges when receiving and repaying the Swiss loan, and there is also no exchange rate risk for loans without Credit Bureau. Borrowers gladly accept a slightly higher interest rate for loans without Credit Bureau information and guarantors compared to inexpensive German loans.