It can happen that the rent is due, the car has to go to the workshop and at the same time the refrigerator gives up. What then? A trip to the bank leaves many people baffled because only a few can get a quick loan. Especially for those who have a negative Credit Checker entry, it may be difficult to get a loan from a local bank. Especially not in the urgent process. Then what is the scope for action?
The trend of loans without Credit Checker information has now arrived in Germany and more and more providers are refining their offer for the German market. If you have short-term financial bottlenecks in addition to a negative Credit Checker entry, you can fall back on such an offer.
We took a look around the market to find out which financial service providers are recommended. It is about comparing the fees of these providers and, of course, also taking a closer look at the customer opinions on these providers.
What exactly does Credit Checker do?
Anyone who wants to apply for a loan will have to deal with the term “Credit Checker” sooner or later. Frequently, here and there one speaks of “the entries at Credit Checker”, but who knows exactly what the Credit Checker is all about? So let’s first clarify what exactly the Credit Checker is and why the Credit Checker entries are so important:
Credit Checker is the protection association for general loan protection. In general, the process looks like this:
- Credit Checker stores data on payment behavior from consumers.
- All contractual partners of the company can then access this information about the consumer. The contractual partners include, for example, banks. Thanks to the data collected at Credit Checker, they can then view our payment behavior.
- Based on this, the banks then assess our behavior when borrowing.
Are we able to repay the loan on time or is there a chance that we will lack the necessary financial resources at the time of repayment? It is said that around 97 percent of Germans are good borrowers and pay off their debts in good time.
If you belong to the other three percent, the banks have little interest in granting a loan.
But Credit Checker is not always right about the stored data. There is a possibility that the saved Credit Checker data is not correct. You can easily query and check the data. Anyone who discovers a mistake there can inform Credit Checker and they must then correct the mistake.
If there is a legal Credit Checker entry, there are still ways and ways to get a Credit Checker-free loan. This loan is possible without Credit Checker information.
Attention: The borrowers must, however, expect that their own bad creditworthiness will be offset with higher interest rates in order to compensate for the default risk. While the usual market interest is perhaps five percent, the interest on loans without a Credit Checker can also be twelve percent.
Who are the loans without a Credit Checker?
Loans without Credit Checker often referred to as short-term loans, sound like an enticing offer. However, you shouldn’t go head over heels in such a loan because there are some notable risks. If you are interested in a loan without Credit Checker, you should keep a few things in mind:
- On the one hand, there is a trade-off between whether the interest and amounts of money due in the future can be repaid on time.
- If you cannot pay the loan debt on time, you can also count on the costs of passing it on to a debt collection company.
A loan can help you through a short-term shortage, but those who have long-term financial problems are usually not helped with a loan. Rather, the loan creates additional costs that the borrowers must somehow be able to pay.
What is the money from the loan used for?
It also depends on what the money from the loan is to be used for. If you want to treat yourself to a nice vacation trip to the Caribbean or a new television, you’d better save for these little extras of life. Not only because this saves some costs in the long term, but also because it can prevent unnecessary complications :
- So using this loan for luxury goods is less suitable. Because those who are already struggling with a negative Credit Checker entry will be less well off with late payments, dunning procedures, and enforcement because of a vacation.
- Use a loan without a Credit Checker for debt relief? No, that’s not a good idea either. In the long term, debtors could face even more fees and costs here. In this case, going to a professional debt advisor makes more sense in the long term.
Only if the loan is a means to avert worse consequences is it surely justified to apply for a loan without a Credit Checker.
Recognize dubious providers
Whoever decides to take out a loan without a Credit Checker cannot contact the local banks. Because there is no credit there without Credit Checker. Instead, you have to turn to other financial service providers.
However, these are by no means all serious and recommendable. It is therefore important to take a very close look at the providers and their offers before taking out the loan.
No credit check? Can it be safe?
Some credit intermediaries use this to advertise to anyone interested in a loan without having to prove their income or creditworthiness. Anyone who encounters such statements in their research on loan providers should avoid these providers. Because such statements are anything but serious.
Even financial service providers who offer a loan without a Credit Checker generally do not grant it without a credit check or proof of salary. These companies also want to make sure that the borrowers do not over-indebt themselves with this loan. Finally, financial service providers also want to know that the loan installments can be repaid on time.