Provide additional security in the loan agreement
Applying for a Credit bureau-free loan always makes sense if the borrower is already aware that his Credit bureau entry is negative and the internal Credit bureau ranking is bad. Then a negative Credit bureau can be a reason for rejecting the loan application, even if the borrower has a regular income. Credit bureau is an elementary security in German banking, which is why many banks also query this entry via the borrower.
If a bank voluntarily waives this check, one can apply for a Credit bureau-free loan, which is then usually issued to the recipient of the loan if the income is suitable. Under certain circumstances, however, the latter may have to provide additional security in the loan agreement, for example if Credit bureau is not asked and at the same time the regular income is only to be set at a low level. Then the candidates no longer meet the ideal ideas of a bank, which is why the bank may require additional collateral for the loan.
It is obvious to use a guarantor who is liable for the loan through his income and thus represents additional security for the bank. The conditions usually do not change, and the guarantor also receives no share of the loan amount himself. He is only liable for the debt of the borrower until it has been paid in full. As a result, it is not a matter of course for those affected to find a person who is also willing to provide a guarantee.
Despite a negative Credit bureau still on the loan
A negative Credit bureau is not necessarily a reason for rejecting a loan, even if an immaculate Credit bureau is of course worth striving for. Cream banks, for example, generally grant loans without prior checking, which is why these banks are a good first point of contact for those affected when a loan is urgently needed.
However, the fact that the loan is issued without a Credit bureau check does not mean that the bank has completely foregone checking and evaluating the creditworthiness. Finally, credit institutions must also adequately protect their loan against default, which is only possible in advance if the borrower is classified as liquid and trustworthy. Interested parties can easily apply for the Credit bureau-free loan via the Internet.
Here, those affected can see a maximum of transparency, which they can take advantage of by comparing the terms of the individual providers. The application itself can also be initiated directly via the loan calculator, so that the loan in liquid form reaches the borrower as quickly as possible on his checking account.