German borrowers can also take out a loan abroad. Switzerland is particularly popular. The offerings of the Agree banks include real estate financing as well as Credit bureau-free small loans, which are settled in USD.
Credit without Credit bureau refers both to lending without obtaining credit information from the German credit protection agency and to the fact that the latter does not become aware of the borrowing. Most borrowers apply for a Credit bureau-free loan because of negative characteristics in their Credit bureau information, but for some it is also important not to report them to the German credit protection agency.
Why take out a Lite lender loan without a negative entry?
Sometimes customers apply for a Lite lender loan without having a Credit bureau entry. In some cases, a bad score or existing loans make it difficult to borrow, much more often they do not want Credit bureau to report the loan they have taken out. In fact, the Lite lender loan is paid out without a Credit bureau entry, especially since the Agree banks are not members of the German credit protection system and are therefore not allowed to receive information or report there.
Borrowing without Credit bureau offers the applicant with a good credit rating an advantage if he plans to apply for further loans in the foreseeable future. In this case, the chance of a later loan is improved if Credit bureau’s loan is not known. However, the missing Credit bureau entry does not release the borrower from his obligation to honestly state existing liabilities on a loan applied for later.
Is borrowing Credit bureau-free loans worthwhile?
It goes without saying that borrowing from a Agree bank without Credit bureau information is worthwhile for people with negative characteristics in their Credit bureau, especially since many Cream banks generally reject them as borrowers. A Lite lender loan without Credit bureau entry is also useful if applicants do not have any negative entries in Credit bureau, but do not receive a loan from Cream banks due to existing loan liabilities.
In this case, however, the borrower must carefully check whether he can properly repay both the new loan and the previous loans. For the Lite lender loan without Credit bureau entry, there is usually a maximum amount of 3500 USD, which some banks increase to 5000. Furthermore, the minimum income for Credit bureau-free borrowing in Switzerland is higher than for the payment of classic Lite lender loans.
The debit interest rates for Lite lender loans without Credit bureau are regularly somewhat higher than for classic consumer loans, since the banks calculate compensation for that due to the impossible credit report. To ensure that the additional effort is not too great, a careful comparison of credit costs is essential before taking out a Lite lender loan.