The most common definition of Loans with bad private credit refers exclusively to the fact that the creditor’s credit report contains at least one negative feature. According to most credit institutions, this is also the result of a completed negative entry, which private credit himself officially counts as neutral.
An extended interpretation of a bad private credit also includes a low score in these, so that this credit feature can also apply to applicants without a negative entry. Borrowing is generally possible with a low score value, but without a private credit negative feature, since it is considered as an exclusion criterion for lending with significantly fewer banks than a negative entry. Moreover, by no means does every credit institution follow the credit rating exclusively for the scores calculated by the private credit.
If consumers want to borrow low-private credit because of a low score, but without negative feedback, they prefer credit offers with standard bank processing times. In the case of a promised accelerated processing of applications and especially for instant loans, the Bank can not carry out an independent credit rating for reasons of time, so that it relies on the assumption of the private credit score. Few banks expressly indicate on their homepage that they calculate the credit worthiness themselves, so the private credit score is only part of the rating of the creditworthiness.
Low score borrowers prefer fixed rate loan offerings to all clients as they pay significantly higher lending rates than the average for credit-based interest calculation.
Private credit-free loans or loans with private credit request for negative entries?
Common among bank customers is the view that all domestic banks do not grant loans with bad private credit in the sense of a negative contribution. However, this is only partially true as many financial institutions actually apply such an exclusion criterion. Nevertheless, individual German consumer banks explicitly point out the possibility of applying for a loan with a soft negative credit rating. Intrasavings Bank explicitly excludes from most of its funding programs only borrowers with a previously filed private insolvency. The prerequisite for borrowing from the development bank is the complete fulfillment of the conditions of contract, so that they are only suitable for a few credit seekers. These include, among others, students who are barely able to switch to schaff-free loans from Switzerland.
In addition, applicants with bad private credit can borrow together with another co-applicant. This must have a credit rating without any negative entry and a regular income. Few banks additionally require that both borrowers live together. These filters out applicants who will take out the loan together with a parent or the brother or sister or a good friend at the beginning of the loan comparison.
The most well-known loans with bad private credit originate from Switzerland and are assigned without private credit inquiry. For the Swiss loans only amounts of 3500 and 5000 Euro are possible. The credit limit can not be circumvented by the simultaneous application for several Swiss loans, since the resident credit banks make a routine request to the ZEK. This can be compared with the German private credit, but collects information exclusively about concluded in Switzerland financial contracts. For freelancers and the self-employed applies in addition that they are only accepted by a few Liechtenstein-based banks as loan customers.
Good opportunities for cheap loans with bad private credit offers the appointment of a mediator. This one is soliciting loans from different domestic and foreign financial institutions. As an additional service, he compares the incoming credit offers with regard to the interest rate and the terms of the contract. Loans with bad private credit are ideally equipped with the right to an occasional break in payments, so that temporary increases in spending do not cause any further irregularities in payments. A basic requirement for the award of a contract to a credit intermediary is that the latter does not charge any pre-costs, but only a reasonable performance fee in accordance with the legal provisions.
Organized business loans with bad private credit
Loans with bad private credit can generally be applied for via internet credit exchanges. As a first step in the application for credit, it is accepted as a member seeking credit who does not oppose a soft private credit negative. On some of the platforms, it is possible to waive the solicitation of credit information on request.
The actual loan payment will take place as soon as the private lenders have fully subscribed to the request. This can be accelerated by a comprehensive presentation of the planned acquisition, because the private lenders are based in their decisions to a considerable extent on the intended use. The non-disclosure the bad private credit is possible, but not recommended for only a soft negative entry. Instead, the honest handling of the weak credit rating rather leads to a subscription of the request, as the private lenders give the applicants just a loan to which the borrowing of banks is only possible to a limited extent.