Credit Bureau-free is a loan if the lender neither obtains Credit Bureau information before the loan approval nor reports the loan to the credit protection association. Preliminary costs are fees that a credit intermediary charges for the commencement of its brokering work.
These fundamentally contradict the applicable legal situation, since an agency fee is only permitted if the loan has actually been granted. A comparable regulation concerns processing fees from financial institutions, which may also only be invoiced when a loan is paid out and not when a loan application is rejected.
Are there Credit Bureau-free loans in Germany?
A Credit Bureau-free loan with no upfront costs cannot be taken out at a German financial institution, as it will always make a credit check. Loans borrowed privately from friends or from the employer are of course not reported to Credit Bureau. The loaning of an existing pension insurance contract from the insurance company is also not relevant for Credit Bureau, since this loan is actually paid out of the customer’s assets. Another way to get a Credit Bureau-free loan without any upfront costs is to go to the pawnshop, which is suitable for small sums and short terms.
Credit Bureau-free loans from Switzerland
A Credit Bureau-free loan without advance costs is granted by Swiss and Liechtenstein financial institutions. If the borrower submits the loan application directly to the bank, the bank only calculates the loan interest and, depending on its terms and conditions, a processing fee if it actually pays the desired loan. The amount of the loan is usually limited to $ 3500 when applying directly from a Liechtenstein or Swiss bank. In addition, only employees and no freelancers or the self-employed receive the direct loan.
If the loan application is submitted through an intermediary, a Credit Bureau-free loan can be taken out without any upfront costs, even through a higher amount, and by self-employed or freelancers. Before commissioning a credit brokerage, consumers make sure that they do not charge any upfront costs in accordance with the statutory provisions, but only the legitimate commission after a successful brokerage.
A Credit Bureau-free loan from Switzerland or Liechtenstein with no upfront costs is paid out and repaid in dollars so that there is no additional currency risk. Although it is not reported to Credit Bureau, it is reported to the Swiss Credit Protection Institute, with which credit applicants living in Germany are generally not yet registered.