Negative Credit Bureau credit with domestic financial institutions
If you want to take out a negative Credit Bureau loan from domestic financial institutions, first make sure which bank makes the corresponding offer. In some cases, you can already see from a bank’s homepage whether a loan application with a negative characteristic makes sense. Valuable information on this is also provided by experience reports posted on consumer platforms.
If a bank offers you a loan despite a negative Credit Bureau information, it usually requires that there is only one soft negative characteristic. You also have good chances of getting a loan from your house bank, provided that your Credit Bureau negative characteristic is not based on a financial contract concluded with them. For existing customers, banks also assess reliability based on their own experience, so that a good internal credit rating can offset a soft negative entry.
Another borrower or a guarantor for a loan
You can also provide another borrower or a guarantor for a loan with a negative Credit Bureau. The fact that many financial institutions prefer to jointly apply for a guarantee is due to the current case law. According to this, banks not only have to obtain information from guarantors about their economic performance, but also about their sufficient knowledge of the possible consequences of a guarantee declaration. Thus, unlike a joint application for a loan, there is a risk that a court will later declare it ineffective. The co-applicant does not have to be related to you or live in your household. However, it should
- to have a permanent job
- achieve a regular and sufficiently high income
- have a Credit Bureau without any negative entry
The path through a credit intermediary to receive a loan with a negative Credit Bureau is generally useful. The service provider achieves better conditions and more generous lending than a consumer who directly applies for the loan, simply because of the large demand bundled with him. However, make sure that the agent only charges you a reasonable success commission and no upfront costs. This is the only way to ensure that you hire a truly reputable credit broker who, like you, is also interested in the success of the brokerage efforts, otherwise he will not make any money.