Prepayments are payments that a loan applicant must pay before paying his money. They are required by some credit intermediaries to process a loan application, but are not allowed under German law and EU-wide case law. private credit’s participation in each domestic lending transaction consists of obtaining creditworthiness information prior to the loan approval and subsequently informing the credit security of the payment made.
A loan without private credit and Vorkosten is basically not available at German financial institutions. This is not due to the pre-charge collection, in this regard, of course, the German banks to comply with the legal provisions. Rather, the reason is that they make a credit inquiry with the private credit in each case, as soon as they have a loan application. The fact that bank customers can use existing credit lines again at any time without further inquiry from private credit only seems to be an exception. The bank did this before granting the credit line and was given permission to repeat it. It will make use of this with a desired increase in the credit line, but also if it is exceeded.
The clientele for bank loans without private credit and advance costs
Most customers choose a loan without private credit and pre-cost, as their credit report contains one or more negative features and thus they receive a loan from domestic credit banks only under more difficult conditions. With a hard negative entry or with more than one soft negative feature, borrowing is even considered almost impossible. Even with a positive private credit, the loan without private credit and advance costs can be the most suitable bank product for borrowing.
This mainly applies to borrowers whose plans provide for further borrowing within the following six months. If consumers borrow two or more credits over half a year, their private credit score will deteriorate, making the last loan requested more expensive for a credit-based credit rating calculation. Furthermore, borrowing without private credit and without any advance costs makes sense if the lender is not to be aware of existing liabilities. However, a question asked in the loan application for already serviced loans must be answered honestly.
The loan application without private credit and Vorkosten
The most frequently borrowed loan without private credit and advance costs is referred to in the jargon as Swiss credit. It is paid out in Switzerland and also by banks based in Liechtenstein. If the customer applies for the Swiss loan directly from the bank, it will not charge any pre-charge like all reputable financial institutions. The requirements on the borrower are higher than for domestic lending banks because of the unrecovered private credit information. For example, the Swiss Federal Institutions have set a different maximum age, depending on the bank, of predominantly 52 to 58 years for the lending-free lending.
The income of the loan applicant must clearly exceed the attachment exemption threshold. Although this refers to total labor income, garnishment in the event of improper loan servicing is made more difficult in practice if the borrower draws his income from multiple sources. For this reason, Liechtenstein and Swiss banks only recognize the income from the main job and no additional income in the case of a household bill for a loan without private credit and advance costs. Even the child allowance, unlike most German commercial banks, is not included in the credit application check. Freelance and commercial self-employed can also take out the private credit-free loan without private credit from a few banks.
The loan amount to be applied for directly from a Swiss bank without private credit and advance costs amounts to either 3500 or 5000 euros. Higher sums are available only through an intermediary. Before commissioning, consumers pay attention to whether their service provider arranges the loan without private credit and advance costs. The non-calculation of credit prepayment ensures that the agent actually seeks the lending, as he receives a fee only in case of success. It also indicates its respectability and compliance with the law.
Alternatives to Swiss loans without pre-payment and private credit
Some programs of KfW Bank are perceived by applicants as a loan without private credit and advance costs, since a negative credit rating does not affect the allocation of funds. Especially with student loans, a credit rejection is only made if a requested personal bankruptcy is noted. In fact, without private credit, the loan is not processed, as the credit institution in any case submits a request.
A platform for private credit brokerage makes it possible for its members to request the loan not only as usual without pre-payment, but at the same time also without a private credit request. Since private lenders mostly do not consider a negative entry as a credit restriction, the use of this option is only possible if there are several negative entries.