An instant loan without Credit Bureau promises an uncomplicated application and a quick loan approval. However, checking creditworthiness is an important criterion for banks when granting loans. It is not without reason that many consumers ask themselves whether an instant loan without a Credit Bureau query is legitimate. This guide answers these and many other questions.
The essentials in brief:
- With an instant loan, applicants will receive a loan approval within a short period of time.
- In Germany there is no instant loan without banks from Credit Bureau, since the credit check is a prerequisite for the granting of a loan.
- Online instant loans without a Credit Bureau query are in many cases not reliable.
- With Good Finance credit calculator, providers can be compared without worsening their creditworthiness.
What is an instant loan?
An instant loan is basically a classic loan. Consumers receive a sum of money from a bank, which they pay back at constant monthly installments. At the end of the term, the debt to the bank is paid off. In return for the provision of the financing, the banks charge interest, which is calculated on the basis of the loan amount and the term. The interest is also calculated on the employment relationship (civil servant, self-employed, employee) and personal creditworthiness.
The instant loan differs from the classic installment loan in that the applicants receive a very quick approval from the bank. Most institutes advertise that they examine the application and grant the funding within a few minutes. This means that the money is available to consumers after just a few days.
Instant loan without Credit Bureau: That is why it is not available in Germany
Good creditworthiness is a prerequisite for an instant loan. As the financing amounts are usually up to USD 10,000, the banks refrain from examining the applicants in depth. All you need is proof of income and positive Credit Bureau information. The latter means that an immediate loan without Credit Bureau is generally not possible in Germany.
Credit institutions are legally obliged to check the creditworthiness of their applicants. This law is designed to prevent overindebtedness of consumers and payment defaults. Germany’s largest credit reporting agency, Credit Bureau, simplifies this check. It stores credit-relevant information about consumers and uses this data to create a score. This provides information about a person’s solvency and measures the probability of default.
If banks refrain from querying Credit Bureau when lending, it is not possible to offer an instant loan. In this case, they would have to independently carry out a comprehensive review of the applicants’ personal and financial situation. Since this procedure takes significantly more time than a query at the credit agency, an instant loan without Credit Bureau is not available online or in a branch bank. Experience shows that in many cases the so-called express credit, like the instant loan without Credit Bureau, is not considered a serious loan.
Is there a loan in Germany without Credit Bureau?
Compared to the instant loan without Credit Bureau query, Credit Bureau-free loans are also available in Germany. Some banks offer these if the applicants have a solid income and relatively low expenses. In addition, some providers require loan collateral like a guarantee.
A loan without Credit Bureau can also be a loan provided by private individuals. Like banks, they provide an amount of money that borrowers pay back including interest. Some lenders forego the Credit Bureau query and decide at their own discretion whether they want to make the money available to the applicants.
Consumer protection warns: Beware of fraudsters
Credit fraudsters are mainly found on the Internet. You advertise with offers such as “Quickly and easily take out an instant loan without Credit Bureau online” and a loan approval within minutes. As a rule, a reputable provider cannot make a quick commitment because he has to check all credit-relevant data first. It is possible to get a loan without a Credit Bureau query, but it is not an instant loan.
Detect fraudulent credit intermediaries
A Swiss loan or a private loan are alternatives for consumers who do not receive traditional financing due to poor creditworthiness or a negative entry. If you are looking for a suitable provider on the Internet that provides reputable loans, you should pay attention to the following aspects:
- A loan without Credit Bureau is always more expensive than classic loans. Below-average low interest rates have to be questioned.
- A reputable provider demands proof of income and possibly also collateral.
- An instant loan without Credit Bureau with payment within 24 hours can usually be traced back to a dubious offer.
- According to the data protection regulation, website operators must keep an extensive imprint. Consumers should pay attention to the address and a commercial register entry.
- Untrustworthy providers can usually be recognized by the fact that they offer paid customer service and charge upfront fees.
Tips: This is how consumers can improve their creditworthiness
The Credit Bureau score is an important criterion for lending. With good scoring, consumers identify themselves as trustworthy business partners who are expected to meet their payment obligations. The evaluation of the credit agency is therefore an important tool for private individuals and companies to prove their creditworthiness. Since Credit Bureau mainly stores positive characteristics, consumers have the opportunity to influence and improve their scoring.
Compare and correct data
Consumers can request a free self-assessment from Credit Bureau once a year. You should use this option to check your information. Incorrect entries may occur or unpaid loans have not yet been deleted. In such cases, the credit agency is obliged to correct or remove incorrect data.
Compare conditions instead of making credit requests
If you want to find out about possible offers from banks, you should always carry out a condition comparison and not make any credit inquiries. Because every loan request is registered with Credit Bureau. Too many inquiries cause the credit rating to deteriorate. A comparison of conditions, on the other hand, is Credit Bureau-free and is not transmitted to the credit agency.
With the Good Finance loan calculator, users can compare different providers without risking a deterioration in their creditworthiness.
Combine and close bank accounts
If consumers have a bank account, their scoring improves. However, Credit Bureau recognizes the possession of several bank accounts and credit cards, especially at different institutions, as negative. To improve creditworthiness, consumers should merge and close their accounts.
To meet payment obligations
If a loan is repaid within the specified time, this has a positive effect on the Credit Bureau score. Defaults on the other hand lead to a deterioration in creditworthiness or even a negative entry.
When purchasing on account, consumers must ensure that they are always paid immediately. A reminder does not yet affect the score, but after the second letter and a period of four weeks, the dealers can send a message to Credit Bureau.
Consumers who do not pay insurance premiums on time risk not only termination, but also a negative Credit Bureau entry.
Cancel old contracts
The credit agency records existing business relationships of consumers. These include contracts with telephone and electricity providers. To improve creditworthiness, consumers are required to terminate old, unnecessary contracts.
Avoid frequent changes of residence
A frequent change of residence testifies to an inconsistent lifestyle for Credit Bureau. Consumers who move a lot and also change their business relationships with banks have a negative impact on their score.
A second borrower can be entered when making the loan request. If the applicant has his own income, the banks take into account the financial circumstances of both applicants. In this way, both the security for the credit institution and the creditworthiness can be improved.
Conclusion: Instant loan without serious Credit Bureau
A look at the requirements of the banks shows that an instant loan without a Credit Bureau query cannot be serious. In addition, consumers are always advised to avoid loans without a credit check if possible. Credit Bureau-free loans are always more expensive and subject to worse conditions than traditional forms of financing.
Practice shows that many consumers misjudge their Credit Bureau. A missed invoice does not lead to the rejection of a loan application. Before a loan is concluded without an examination, applicants should always apply for Credit Bureau funding. Before doing so, they can exercise their right to free self-disclosure and check their creditworthiness and any existing entries.
Consumers who want to take out a loan in the future should start improving their scoring early. In order to find a suitable provider, it is also advisable to carry out a condition comparison and not to make a credit request directly. With the comparison calculator from Good Finance, consumers can quickly and clearly compare different providers and find a low-interest offer with good conditions.