Installment loans without Credit bureau are not available from German banks. The close cooperation with Credit bureau is intended to protect the banks from loan defaults. In Germany, for example, the Credit bureau information is initially obtained with every loan request. If a loan is granted, this is also registered with Credit bureau. If there are repayment problems, the notification to Credit bureau serves as a warning to all potential lenders about this debtor.
Installment loans without Credit bureau are still possible.
Installment loans without involving Credit bureau are available as loans from abroad. Good lender loans is the most common name for these loans. They are issued by respected foreign banks. Credit intermediaries usually establish contact with the banks. They advertise these loans both on the Internet and in the daily newspapers.
Credit bureau can be excluded from Good lender loans in different ways. On the one hand, the Credit bureau information does not require the creditworthiness to be checked. There is also the option of not allowing loans granted to be registered with Credit bureau. Both variants make sense and bring advantages to the applicant.
The non-entry of a loan granted ensures that the credit rating for other loan projects does not decrease. German banks, which are mainly based on the Credit bureau, cannot easily recognize such a loan. Most of these loans are paid out in post. If a third-party account is used for the repayment, the loan is practically invisible to Credit bureau and the banks. As long as this loan is not kept secret when asked about further liabilities in loan applications, the procedure is legal. However, if you lie, you may even be punished.
Installment loans without Credit bureau protect against unfair scoring.
In credit scoring, people are divided into statistical groups. Credit scoring does not judge a person’s creditworthiness based on their own deeds, but on their group membership. The statistical evaluation on which the scoring or ranking is based is actually intended to simplify the credit check. In individual cases, however, this can have extremely adverse effects.
Even a person’s place of residence can, in the worst case, result in a huge loss of creditworthiness. The effects can even go as far as loan rejection. Even if the applicant is not guilty of misconduct. He is not seen individually at all, only his group. If the payment behavior of this group is bad, then this also suggests, at least statistically, a bad payment behavior of the applicant. Installment loans without Credit bureau protect against these effects of credit scoring.
Good lender loans as installment loans without Credit bureau do not necessarily have to be more expensive than other installment loans. Credit security is crucial for financing costs. Good repayment ability, which ultimately guarantees credit security, can also be demonstrated for installment loans without Credit bureau.