Credit Bureau-free is a loan if the financial institution does not make a Credit Bureau request before the loan is issued and does not report borrowing to the German credit protection agency. Taking out a Credit Bureau-free loan makes sense not only in the case of negative entries, but also in the case of planned further lending.
Credit Bureau-free loans are usually granted by banks based in Switzerland. In Germany, Credit Bureau-free loans can only be applied for if the lender provides collateral in the value of the loan. Insurance companies are most likely to grant Credit Bureau-free loans by granting the borrower their own payment claims from an existing life insurance or private pension insurance.
Credit Bureau-free credit despite good Credit Bureau
If consumers are planning further major financing such as a property purchase within the next six months, they should apply for a Credit Bureau-free loan for a consumer loan. More than one borrowing within half a year causes the Credit Bureau score value to deteriorate, making the subsequently planned financing more expensive. This effect can be avoided by applying for a Swiss loan because Credit Bureau is not aware of the loan taken out.
Credit Bureau-free credit if Credit Bureau is bad
If consumers have forfeited a negative Credit Bureau entry, domestic banks are reluctant to grant a loan. Alternatively, you can apply for a Credit Bureau-free loan from a Swiss bank. The federal financial institution pays this in dollars so that the additional risks of a foreign currency loan do not arise. A prerequisite for applying for a Credit Bureau-free loan directly from a Swiss bank is that the applicant has a sufficiently high income.
When assessing income for lending, Swiss banks only take into account earnings from their main job, while ignoring both secondary income and child benefit. If consumers do not meet all the requirements for direct lending from Swiss banks, they can still apply for a Credit Bureau-free loan through a credit intermediary. In this case, make sure that the credit broker only charges you an appropriate commission if the loan is successfully brokered and no upfront costs.
While the federal money houses limit the loan amount to 3500 dollars for direct lending – at a few institutions to 5000 dollars – consumers can apply for a Credit Bureau-free loan in Switzerland for larger amounts through an intermediary.