Competition in the German banking industry has increased significantly in recent years. In addition to the classic financial institutions, which repeatedly try to attract new customers with special promotions, a growing number of providers have established themselves since the widespread use of the Internet, which offer loans exclusively on the Internet. These offers are well received by consumers, as they often offer better terms and interest than branch bank offers. In addition, many offers can be compared quickly at a glance on the Internet.
What is an online loan without Credit bureau and without upfront costs?
This is a form of credit that is very popular with consumers. An online loan without Credit bureau and without upfront costs means that the bank does not request the applicant’s data from Credit bureau when applying for a loan. Credit bureau is a common database of the German banking industry. The payment behavior and payment obligations of most German citizens and other financial data are stored there.
A negative entry does not necessarily mean that the person is about to go bankrupt. If you submit a loan application to different banks several times in quick succession, this can lead to a negative Credit bureau entry. The same applies if you are in arrears with installment payments or debits from your checking account fail several times due to insufficient funds. It is difficult to find a loan with a negative Credit bureau entry. That is why many consumers choose an online loan without Credit bureau and without any upfront costs.
Important points for an online loan without Credit bureau and without upfront costs
An online loan without Credit bureau and without upfront costs does not mean that the borrower’s solvency is not thoroughly checked. Proof of a regular income is essential. This means the current wage or salary statement. As a self-employed, freelancer with no regular income, it is difficult to get a loan. If the income is too low (under around 900 USD per month), it is almost hopeless even with online loans without Credit bureau and without upfront costs. When a loan is said to be free of charge, it does not mean that there are no extra costs.
Many of the online loans without Credit bureau and without upfront costs are loans from foreign banks, often from Switzerland, which come about through the intermediation of German financial brokers. Of course, these companies also charge their customers fees that have to be added to the cost of the loan. For this, these costs are only performance-related, ie they only arise if a loan contract is actually concluded. For many consumers with negative Credit bureau, it is often the only option.