It is not always possible for consumers to resort to loans offered by banks. The reason: banks generally obtain credit check information to assess their creditworthiness and accordingly before lending – people who have many or too many negative entries in the debtor register are then often rejected, but including the income and asset situation.
Loans without credit check are offered by foreign banks – since hardly anyone would now be willing to go to other countries to borrow money, the foreign banks work with loan brokers, who offer the credit check-free loans on the Internet.
A low credit score or thin file can make it frustrating and expensive to have loan options. But there are ways to borrow without using payday lenders.
Not everyone can get a credit check-free loan – people without a real income, such as the unemployed, students, housewives, trainees etc., are fundamentally excluded from these loans, the same applies to freelancers and the self-employed, since there is no fixed income here, but rather a fluctuating. The minimum age for loans is 18 years, the maximum age is 55 years in the new federal states and 57 years in the old federal states. A permanent residence is mandatory, debts stand in the way of borrowing.
The opinion that credit check-free loans inevitably have a higher interest rate due to the higher risk for the banks is as widespread as it is wrong: the interest rates basically do not differ from the interest on loans that are only granted with credit check information – this is the result normal fluctuations between the offers of the individual banks, as with other loans.
However, what makes expensive credit check-free loans more expensive are the commissions from the loan agencies, because of course they don’t work for nothing. In other words, if a successful loan agreement is reached, the credit agency will earn a lot from this deal. The fees are paid either in the form of a direct deduction from the loan amount granted, a one-off payment to the credit agency or by shares in the loan installments to be repaid.