Credit Bureau collects information about proper loan processing as well as financial misconduct. Lending through a German financial institution is regularly associated with a Credit Bureau request and with the notification of the conclusion of the credit contract to the credit protection agency. A co-applicant is liable towards the bank as well as the main borrower for the repayment of the loan. It is to be distinguished from a guarantor who is only liable if the actual borrower does not repay the loan.
Loans without Credit Bureau
If a borrower has a Credit Bureau negative entry, they often choose to borrow together with another borrower whose Credit Bureau information is faultless. An alternative to a loan from a Cream bank, taken out in pairs, is a loan without Credit Bureau and co-applicants, as it is granted by Lite banks. As a non-contractual partner of the German Credit Bureau, the federal banks cannot make a credit rating request and at the same time cannot report the borrowing to the credit protection association.
They grant a loan without Credit Bureau and co-applicants if the applicant’s working income corresponds to their significantly higher minimum requirements compared to most German financial institutions. The amount of a loan without Credit Bureau from Switzerland is also limited, most banks grant a maximum of 3500 and a few federal credit institutions up to 5000 USD.
Swiss Credit Bureau-free loans are processed without a co-applicant and in the currency of the euro, so that there is no exchange rate risk for the borrower. The borrowing is not reported to Credit Bureau, but to the Swiss central office for credit information. This notification, which is binding for the bank, means that no consumer can extend the total credit line by taking out several Credit Bureau-free loans. At the same time, if the loan received is not used properly, it limits future borrowing in Switzerland.
Other ways of borrowing
In the consumer’s perception, the repeated use of a granted credit line often also presents itself as a loan without Credit Bureau and co-applicants. In fact, the bank only makes a Credit Bureau credit rating request when a credit line is approved for the first time and notifies the credit protection company of its approval actual utilization. If consumers only forfeit a Credit Bureau negative entry after the first granting of a credit, they can continue to use existing credit lines.
However, you will lose the credit line if you do not make the repayment as agreed. The pawnshop loan is the oldest loan without Credit Bureau and co-applicants, and when it is paid out, the pawnshop owner only uses the pledge as security. The loan on a private pension insurance contract or life insurance claims is also suitable as a loan without Credit Bureau and co-applicants. Since the borrower is mortgaging his own credit, the insurer does not have to make a credit check. However, it is not sensible to lend subsidized insurance contracts, since in such a case the subsidy must be repaid.