Submitting a loan request with Credit bureau entry and getting the loan approved can be a challenge – because a clean Credit bureau with no negative entries is one of the basic requirements for taking out a loan. Credit bureau contains a number of data that are related in some way There are payment obligations.
The conclusion of a credit card contract is registered as well as a leasing contract or a current loan or loan. As long as the borrower meets all payment obligations on time, this data is only stored as information. If a loan is paid in full, the entry will be deleted after a certain time. Such entries are important for a lender, but they have no negative impact on creditworthiness and lending. It becomes difficult if it is a negative Credit bureau entry.
What a Credit bureau entry means for the bank
A negative Credit bureau entry usually indicates that the debtor has not met his payment obligation on time and has refused to pay for a longer period. A warning or enforcement notice or an affidavit are such negative entries. If you then submit a credit request with Credit bureau entry, there is a great risk that the application will be rejected – from the bank’s perspective, the risk that the loan will not be repaid is too great.
Credit bureau-free credit as an alternative
If a loan application with Credit bureau entry is necessary, then often only a so-called Credit bureau-free loan helps. It is referred to as “Credit bureau-free” because the credit is not entered in the Credit bureau and because no Credit bureau information has to be presented when the permit is issued. Credit bureaufree loans are generally not available in Germany. In neighboring European countries – especially in Switzerland – a Credit bureau information does not necessarily have to be presented. When checking the creditworthiness, the focus here is solely on regular income and an unlimited employment relationship, as well as on orderly financial relationships. As a result, a Swiss bank ultimately gains no knowledge that the Credit bureau is not quite in order.
Credit bureau-free loans are required more often than it seems. For this reason alone, a few credit agencies have specialized in Switzerland that specialize in such loans. They are the first address when a loan application with Credit bureau entry is required.