Credit without schufa – what consumers need to know

GERMANY. There are situations in life, in which a helping financial injection is necessary, although a negative credit entry speaks against a borrowing. If consumers unexpectedly get into a financial emergency situation, they get stressed, sometimes even panic. Under time pressure, those affected grasp at any straw that offers itself and sign credit agreements without thinking twice. This can be really expensive and for some the entrance into the debt trap be. The article explains what loans without Schufa are and how to find reputable offers.

Chronic lack of money: often consumers unknowingly slip into debt

Living in Hildesheim can be expensive. According to the rent index, an 85-square-meter apartment in the city center costs up to 10 euros per square meter, while a two-room apartment on the outskirts costs an average of 5 to 6 euros per square meter. In addition, there are ancillary costs, which are popularly referred to as "second rent" due to their amount. If you have children and want to place them in a private daycare center or preschool with all-day care, you will have to shell out an additional 250 euros or so.

A look at the cost of living in the university town of Hildesheim shows that it is above average compared to other university towns. The average household spends around 2750 euros a month on consumption. This includes food and beverages, clothing, rent, telecommunications, leisure and mobility expenses. Some households live permanently beyond their means without really realizing it. They have no overview of their finances and live from day to day. If unforeseeable expenses are added, for example an expensive repair of the urgently needed family car or a devastating cellar fire, which tears a hole in the household budget with thousands of euros, quick financial help is needed. A credit without Schufa seems to be a good solution if the personal Schufa score does not look good anyway.

What role does the score play??

"A negative score increases the risk of default for lenders and is one of the main reasons for rejection of a credit application," is written on the website finanzcheck.de to read on the subject of "credit without Schufa. The experts know that a negative entry is a real problem for those concerned. The reason is that the negative entry makes it difficult to conclude a credit agreement. But how does it come to this?

The task of Schufa

Schufa has made it its business to collect information on the payment history of consumers. It works with cooperation partners such as mail-order companies, mobile phone providers or banks. The cooperation partners provide Schufa with information on whether, for example, bills are settled regularly and reliably and loans are repaid as contractually agreed. If there are difficulties, Schufa receives a corresponding message, which it includes in the assessment. A consumer who regularly repays a loan receives a better score than a consumer in similar financial circumstances who falls behind on payments.

Risk assessment of the bank

If a bank conducts a Schufa query, it gains insight into a consumer's payment history and can better assess how great the risk of default is. If the risk is classified as high, the bank looks for alternative hedging options. Some institutions require guarantees and attach conditions to a loan that the borrower has been in permanent employment for at least six months. Others require a relatively high monthly income.

The increased risk of a loan without Schufa is reflected in the interest rate. Credits without Schufa are always more expensive than credits with Schufa.

Tip: Get support from financial experts

When consumers start looking for a loan, they often stumble at the outset by submitting a credit request. A credit request triggers an entry in Schufa. The alternative to this is a condition inquiry. The credit inquiry remains credit-neutral.

Against the background of the higher costs for a loan without Schufa, it is advisable to first try to get a usual loan. Sometimes the negative score does not apply at all because incorrect information has been submitted to Schufa and processed. In this respect, it is advisable to regularly check one's own Schufa entry. Consumers are entitled to a free extract from the Schufa once a year. This includes all relevant data such as bank details, current loans and other payment obligations. If something is wrong, it can be corrected quite easily. The prerequisite is that appropriate evidence is provided.

With the support of financing partners, consumers can avoid pitfalls such as these. Experienced financial experts know which approach promises success.

Credit check mandatory

Banks in Germany are required by law to carry out a credit check, which is, among other things, also due to the protection of consumers. If Schufa is not used, then the creditworthiness is checked in other ways.

This is precisely where the expertise of experienced financing partners comes into play. You know the offers and conditions, requirements and K.O.-Criteria of many different financial service providers and banks that grant loans even with a poor credit rating. The experts accompany loan seekers from the very beginning and work together with them to find a tailor-made loan solution. Above all, this must fit the borrower's financial circumstances so that he or she does not become overindebted and collapse under the burden of the monthly installments.

Conclusion: Find a loan despite negative Schufa with financing partners

Consumers who fear not getting a much-needed loan because of a negative Schufa should get help. Experienced financial experts who have been working in this business for years are in contact with numerous banks and are familiar with the conditions for granting credit and the pitfalls associated with credit applications. You can realistically assess whether there is a chance of getting a loan. In addition, they are able to assess the individual financial situation of a loan seeker in such a way that the loan seeker can determine the amount of the new loan installment to fit the financial conditions.

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