What you should know about "loans without Schufa" > Behind the term Schufa is the German Association for the Protection of Credit (Schutzgemeinschaft fur Kreditsicherung). It stores data on borrowers and their payment history. If a borrower defaults on an installment payment due to financial bottlenecks, this is immediately noted in a database. This database is accessible to all lenders. It is used to evaluate the payment behavior of borrowers. The actual goal is to provide a credit institution with data on the reliability of customers. However, according to statistics, about 98 percent of all loans have never experienced difficulties. In addition, the data stored in the Schufa are not always correct. This has also already become known to many lenders. Therefore, loans are sometimes granted without Schufa.
People with low incomes usually have few reserves to pay for unexpected costs or make major purchases. Under certain conditions, it is possible for low-income earners to obtain a loan and thus improve their financial situation.
The employment contract and the Schufa information affect the credit rating
According to Section 19 in the German Banking Act, borrowers are "two or more natural persons or legal entities or commercial partnerships if one of them can directly or indirectly exercise a controlling influence over the other or others". The first point of contact for a low-income earner is directly the potential credit institution. In addition to an employment contract, the bank usually insists on a Schufa information of the applicant. Especially with a low salary, a positive Schufa information is important, as this has a significant impact on the credit rating. The low-income earner should take care to pay debts promptly and thus convince with a positive ability to pay. If the Schufa information and the creditworthiness are positive, then the applicant has absolutely the chance on a credit.
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