In most cases, a positive loan commitment depends on the applicant’s creditworthiness. That makes sense, because no bank wants to take the risk of lending large sums of money to a person who is not solvent due to existing debt.
The best way to check the creditworthiness of a private person, is the insight into a Credit bureau information. Here, the bank can see at a glance whether the applicant’s creditworthiness exists or whether his financial situation is already burdened with several loans.
What is meant by Credit bureau?
The Credit bureau (protection association for general credit protection) is an institution in which an entry is recorded when taking out loans and loans.
There are positive and negative entries, the latter for example for loans not paid or delayed.
Good to know:
Not only loans in the true sense cause entries in the Credit bureau file. The application for credit cards with a credit line can also entail a Credit bureau entry.
For people who have multiple and especially negative Credit bureau entries, they will have problems finding loans. For people with incriminating Credit bureau entries, the loan without Credit bureau is often the only solution to get larger amounts of money.
What does credit without Credit bureau mean?
Loans without Credit bureau, in effect, means that the lender waives a credit check of the applicant. So far, potential debt and loans are ignored.
This means for the applicant at first glance, that he can expect a loan commitment despite a poor financial situation, but this advantage is associated with some risks.
Advantages and disadvantages of the loan without Credit bureau
- No Credit bureau information required
- Loan amounts are generally provided very quickly upon loan approval
- Loans without Credit bureau are usually not earmarked
- The application for a loan without Credit bureau can usually be carried out largely anonymously
- Even without a Credit bureau entry, a loan without Credit bureau means another financial burden
- The provision and interest charges for a loan without Credit bureau are significantly higher than for regular loans
- The market for non-Credit bureau loans includes a large number of dubious providers who take advantage of their customers’ suffering, for example through excessive fees.
Although the applicant for a loan without Credit bureau is in most cases in an emergency situation, providers and offers should be checked for medulla and kidney.
Too many unprofessional offers attract private individuals into even bigger, financial problems.
The approach of such loan sharks is usually sophisticated, so quick shots should definitely be avoided in this situation.
The loan without Credit bureau is for many the only way to get bigger loans. The relevant lenders refrain from verifying the applicant’s creditworthiness and offset the potential risk they incur with higher lending fees.
If a person decides to apply for a loan without Credit bureau, they should absolutely make sure to check the lender and his conditions to the hilt, here hide many so-called loan sharks!
Reputable providers of loans without Credit bureau can be found in relevant credit intermediation portals.