Credit without SCHUFA: How to recognize reputable providers

In many cases, a “loan without SCHUFA” or a “schufafreien credit” advertised. These are loans granted without a request to credit bureaus. For example, the SCHUFA as the largest organization. Instead, income and, if necessary, collateral is valued. Negative entries are no longer a hindrance.

But why is SCHUFA relevant at all when lending? This is mainly because virtually every bank belongs to this organization and thus by far, the largest private data collection is maintained. Whether you have borrowed, have been properly serviced, or have delayed payment is noted here.

Since the banks have a great influence on the features stored in them, they require the consent of every customer to the “SCHUFA clause”. So the permission to transmit data on the contractual relationship and in return to get information from other member companies. This can be, for example, mail-order companies, but also telecommunications companies. The loan without SCHUFA is, therefore, a loan that does not need the information and in which no entry is made in your database.

The difference to the classic loan?

The difference to the classic loan?

 

One of the major differences to traditional credit is the high audit effort required to process and classify your loan request. With the SCHUFA she would have the opportunity to experience positive as well as negative characteristics and be able to assess whether and for what sum you as a customer are “good”. Since she is not able to do so in this case, she confines herself above all to the examination of income and assets.

In this context, there is often talk of a “Swiss credit”. This is just another term – meaning the same thing. For in the past, it was primarily Swiss banks that wooed German customers. Today, banks of many other countries are in this area. This makes it necessary to deal in detail with the experience in this regard. Because “schufafrei” means in this sense that although Switzerland has similar credit bureaus, these do not apply to German citizens.

Check your SCHUFA entry regularly

Check your SCHUFA entry regularly

In many cases, negative features that should have been deleted become an obstacle. Therefore, regularly check whether completed items were actually deleted after the deadline (3 calendar years from completion). Once a year you can request a self-assessment free of charge.

In a few steps to the loan application?

In a few steps to the loan application?

 

A common problem with loans without SCHUFA is the fact that each intermediary has different procedures and therefore requires different information. Sometimes missing information on one side or the other, which can lead directly to the exclusion.

But even if everything seems to go well and smoothly, this is no guarantee for a successful loan application. It may happen that you will be presented with various additional contracts before the “final commitment”. The broker often justifies this by saying that additional “collateral” is needed and the bank can then initiate a payout. In many cases, these are residual debt insurance policies, which are relatively expensive and are not included in the interest rate. On the other hand, these insurance policies suggest you be safe in case of illness or unemployment. In fact, however, there are always different insurance conditions, and there are also exclusion criteria and maximum rates for the loan amount. In that case, it is helpful to provide your own collateral.

FinanceScout24 guides you step by step through the application points. The purpose of the loan and your most important wishes are queried to find the right provider- it’s up to you, but I did it. Subsequently, it is examined whether and on what terms a loan without SCHUFA would be possible. Of course, completely non-binding for you.

 

Check premature repayment option

The notice periods for such residual debt insurance are often not identical to the term of the loan. Find out in advance what will happen to the insurance if you want to repay the loan early.

This is important when comparing providers

This is important when comparing providers

If you want to make sure that your credit without SCHUFA is reputable and cheap, you should compare all providers very closely. It is best to write down the following questions before starting a query for the loan without SCHUFA:

  • What is the effective annual interest rate as loan interest?
  • Are there any further charges, for example for placement or processing?
  • What are the rates?
  • How fast is the payout?
  • What are the loan amount and the term minimum and maximum?

Pay attention to all the details

With normal installment loans now rate breaks, free special repayments and the like are standard. In the case of loans without SCHUFA, there are no uniform rules in this regard. When making comparisons, please note which offer contains such clauses and what the loan agreement otherwise governs for consumer rights.

This is how you recognize dubious providers

This is how you recognize dubious providers

In this area, too, the principle is that if something sounds too good to be true, then there is usually a catch. Full-mouthed promises should make you skeptical about a loan without SCHUFA before asking. As a rule of thumb, a loan without SCHUFA is not reputable if one or more of the following apply:

  • No collateral is required.
  • A non-performance advanced fee will be charged (eg, “processing fees” or “reimbursement of expenses”).
  • In addition to the loan, further contracts must be concluded (eg for an insurance or a club membership or a consulting contract, which does not stand for success).
  • Blank transfers or salary transfers are expected.
  • The disclosure of customer data for advertising purposes is not excluded.
  • The receipt of the contract documents is required by cash on delivery. Hereby, the mediators suggest that ultimately only one signature is missing and a payout is likely.
  • Instead of a loan, you will only receive a ” financing offer “.
  • Dubious advertising claims, which are formulated as if the loan payment is only a matter of form or influence of the intermediary in any form.

Possible risks for you as a consumer

 

First of all, the SCHUFA database fulfills a kind of control function. Even if it is not obvious to you at first glance, the continuous data exchange protects you and your existence the most. Because negative characteristics do not arise by chance. You will be entered if you are constantly in arrears with installment payments and the bank terminates the loan. However, banks and other companies must meet clear deadlines. Only then can they pass on information to credit bureaus.

For example, valid court rulings, such as loans or other payment obligations, are usually reported to SCHUFA. Regardless of whether you have settled the claim now or immediately thereafter. Including enforcement orders from the Mahngericht- these will be issued if you do not raise an objection to the previous order for payment. But until that happens, time usually elapses, and this time, in which you can agree with the bank or the creditor. It is therefore advisable to seek the conversation in good time and, for example, apply for debt restructuring.

So what does that mean for you? It is said that you may be able to fulfill your obligations “just now”. And so that in the SCHUFA nothing negative was noted. But nevertheless, you can be over-indebted or live in the constant risk, by only a payment default (employer goes into bankruptcy, customers do not pay, etc.) to accept the termination of the credits. The attempt to replace old liabilities with a new loan (without SCHUFA) does little to change the overall situation. In addition, such loans are often issued with higher interest premiums due to the high administrative burden.

When does the loan without SCHUFA make sense?

When does the loan without SCHUFA make sense?

Not infrequently, there are experiences on the internet about the loan without SCHUFA, which report on the procedure and possible problems. But in fact, it is questionable whether these experiences are genuine or just the opinion of those whose loan request was rejected. Several studies have shown that missing documents and disregard of conditions are the two main exclusion criteria for Swiss credit. But exactly these reasons are inevitable even with “normal” bank loans, even with small loans there are identical conditions to fulfill.

Serious loans without SCHUFA? This depends not least on how you approach the matter and what conditions you bring with you. Are you financially sound and do you want to finance it, far away from the SCHUFA? Then this loan can make sense because then the interest rate and term are within reasonable limits. Can you secure your loans with collateral or guarantees? Even then, that’s an alternative. If, however, you are concerned with replacing old or perhaps distressed loans, then you can only advise against it. Although this reduces the number of creditors (banks), it may make the whole thing more expensive and make you even more dependent.

The main advantages and disadvantages

 

Even if a loan without SCHUFA is reputable, it always brings disadvantages and risks along with its advantages. So before you start a query on the loan without SCHUFA, you should consider the following:

advantages disadvantage
Negative features in the SCHUFA remain secret Risk of over-indebtedness
In the case of a loan payment, no entry is made in the SCHUFA Salary/security could be seized if you can not pay the installments
Interest advantages with high household income Often only low credit sums
Fast, partly unbureaucratic and on request anonymous handling Low transit times usual
House bank does not learn of borrowing Often high-interest rates and z. T. Fees (due to higher risk)
Use does not interest lenders Some dubious providers (necessarily compare before!)

As the listing makes clear, there are points that speak for a loan without SCHUFA and points that speak against it. If you already have a high income and still have legacy costs at the SCHUFA (negative characteristics), good offers are not uncommon. Because even finished things are in the SCHUFA three full calendar years after full repayment. And so long they also block your creditworthiness, regardless of your high income.

Even with current financing, such as real estate financing, things can make sense. By paying the loan to a separate bank account with another bank, there is no new situation for your bank.

However, this form of borrowing carries the risk of losing track of one’s own liabilities and other obligations. Although in practice often only low loan amounts are granted, the interest obligations can be a risk. For the usual standards, such as free special repayments are unusual and not provided here. Apart from the fact that the way to the actual payment can be stony.

A serious loan without SCHUFA, ie without previous “processing fees” and other advance payments, is difficult for the layman to identify. The mediators try too hard to play with the feelings and fears of the loan seekers and make empty promises. What do you recognize dubious providers, read here?

What to do if the loan application was rejected?

What to do if the loan application was rejected?

 

Not all loan applications for a loan without SCHUFA actually result in a payout. There are some assumption rates of only 10 to 15 percent. But such numbers should be critically questioned because there are no reasons mentioned (to income and assets). So it’s difficult to pinpoint the true reasons for rejection. In fact, as with classical bank loans, there should be missing or insufficient documents or requirements. Finally, the request leads to no negative impact, so it can be started as often and unprepared.

Accept help and seek alternatives

In many cities, there are municipal debt counseling agencies or associations that are non-profit and are supported by associations. In a personal conversation, all cards are put on the table and alternatives explained. In the foreground is the debt relief, in such a way that a relatively normal life is nevertheless possible. The costs are often low, not infrequently well-versed lawyers work in these teams and give valuable advice.

Can unemployed people receive a loan without SCHUFA?

Can unemployed people receive a loan without SCHUFA?

 

A loan without SCHUFA for the unemployed is usually not possible. Reputable providers require collateral in the form of proof of income, even if they refrain from using the information provided by the information center. Providers who despite all have a loan without SCHUFA for unemployed in the program, usually require extremely high interest and fees as risk compensation. Often they also require an additional guarantor, which is often only recognizable after the query.

An alternative to a loan without Schufa for unemployed can actually be the surety of another person, but also the lending of valuables in the pawn shop or a loan from private. In any case, however, unemployed people should ask themselves, given their situation, whether they really want to expose themselves to an additional financial burden.

Is the loan without SCHUFA suitable for the self-employed?

Is the loan without SCHUFA suitable for the self-employed?

 

Freelancers and self-employed people find it extremely difficult to find a loan already under normal conditions. To get a loan without SCHUFA is possible for the self-employed almost exclusively in the form of a loan from private. Because without a solvent guarantor (better still co-applicants) or without high security to pledge a loan without SCHUFA is almost never approved. Exceptions to this “rule” are made only for doctors and lawyers. Their income is considered almost as secure as income from dependent employment.

Nevertheless, there are banks that offer loans despite a negative Schufa entry. Here, the information of the helpdesk is only of secondary importance – first and foremost the overall economic situation counts. This form of loan is often a cheap loan for the self-employed, as interest rates are relatively low. So if you want to lend yourself money as a freelancer, tradesman, etc., you are not looking for a “loan without Schufa for the self-employed” but for a loan in spite of Schufa.

Which data does the SCHUFA store exactly?

The SCHUFA stores only those data that are undisputed and come from companies that have a “legitimate interest” under the Federal Data Protection Act (BDSG). The following data is stored: personal data (name, date of birth, address), information on the term of loans and any defaults if necessary special repayments for a loan, contract periods etc. of a mobile phone, leasing or installment payment agreements as well as information about reminded claims. Read more about it here.

Are there any ways to improve its SCHUFA value?

The data stored with the credit bureaus form an important basis for assessing creditworthiness. In order for a normal installment loan to come into question for you and you get the best possible loan interest rates, you can do a lot: 7 tips to improve your credit rating.