A loan with bad Credit Bureau is more difficult to obtain than one with positive information. Basically, the customer has two options: he or she can either apply for a bad Credit Bureau loan or try to improve their own Credit Bureau data. The latter is often successful if you try it.
How and where can you get a bad Credit Bureau loan?
If it is an important loan, you should first of all obtain a self-assessment from Credit Bureau. This self-disclosure is free of charge. It happens quite often that the information that Credit Bureau has about the consumer in question is incorrect. For example, people are often confused. It is just as often that the information is out of date. For example, loans are listed that have long been paid off. In such cases you can ask Credit Bureau to correct the entries.
If the data is correct, you have to apply for a bad Credit Bureau loan. However, the conditions are usually significantly worse, ie the interest and fees are higher. You can apply for a loan from a bank, which does not request Credit Bureau. For example, one way is to provide the bank with collateral for the loan you want. For example, this can be real estate or jewelry, sometimes even real assets. For example, with a car loan, the vehicle is taken as security, especially if it is a high-quality new car. The vehicle registration document is deposited with the bank and only handed over to the vehicle owner when the loan has been repaid.
For a loan with a bad Credit Bureau, you can also contact a foreign bank because it is not a member of the Credit Bureau and therefore does not receive any information from there. A well-known example of such a bad credit from a foreign bank is the so-called Swiss loan. The lending bank is based in Switzerland and maintains contact with its customers with the help of German credit intermediaries. The loan amount is precisely specified and is currently currently around 3,500 USD. This amount must be repaid in 40 monthly installments.
As a security, the bank demands an assignment of the salary from the borrower. This procedure is also common at Cream bank. In addition, it is often required to take out temporary life insurance, the term of which corresponds to the term of the loan agreement. The sum insured is high enough to be sufficient to repay the loan in the event of the borrower’s death.
What should you know about a bad Credit Bureau loan?
Although these loans are usually granted without information from Credit Bureau, they are subject to certain conditions. For example, the customer must have been with the current employer for at least one year and the employment relationship must be unlimited. The customer must have a regular fixed monthly income such as wages or salaries. Proof of income in the form of the current certificate of wages or salaries is also necessary.
The latest bank statement is also often required to prove that the income is actually posted to the account. It is therefore very difficult, if not nearly impossible, for people with low income, such as trainees, students or part-time employees, to obtain a regular loan.