Loan for freelancers without credit bureau

Freelancers do not have to register a trade for their self-employed activity. Typical representatives of this professional group are lawyers, doctors and artists. As with traders, their income is subject to fluctuations, so that not all financial institutions accept them as credit customers.

Credit Bureau-free credit for the freelancer at German banks

Credit Bureau-free credit for the freelancer at German banks

If you have your own practice, you can take out an exclusively operational loan for freelancers without Credit Bureau at German financial institutions, since the inquiry about the economic power of the freelance activity replaces the conventional Credit Bureau inquiry. Appropriate information is provided by credit agencies specialized in freelancers and traders, the data records of which also contain information on personal economic circumstances.

If the borrowing serves private purposes, a loan for freelancers without Credit Bureau can be taken out by mortgaging their own claims from pension insurance or life insurance. However, the corresponding insurance contract must not be linked to state subsidies, since the loan leads to the reimbursement of the subsidies. Friends, relatives or, in individual cases, business partners can also grant a loan to freelancers without Credit Bureau, provided they have the necessary funds. Freelancers can also find their way to the pawnbroker if they have a sufficiently valuable deposit.

Credit Bureau-free credit for freelancers from Switzerland

Credit Bureau-free credit for freelancers from Switzerland

With a few exceptions, Swiss financial institutions do not grant direct loans to freelancers without a Credit Bureau, but limit their customer base to employees. The few banks from Switzerland and Liechtenstein that also grant their Credit Bureau-free loans to freelance applicants require at least three years of independence. Additional options for obtaining the desired loan for freelancers without Credit Bureau from a Swiss financial institution are available when applying for a loan through an intermediary.

In this case, the limitation of the number of contractual partners of a federal bank does not apply absolutely, so that freelancers can also receive a Swiss loan. Reputable credit brokers can be recognized by the fact that they do not charge any upfront costs, but only a reasonable commission after the successful credit brokerage. There are no additional processing costs or a currency risk for Swiss loans for freelancers without Credit Bureau, as the payment, like the subsequent repayment, is made in dollars.

Loan with guarantee – bank clear rules

 

Banks have clear rules according to which they can grant a loan. First of all, they need the certainty that the borrower can repay the borrowed money with interest. A fixed, sufficiently high income of the borrower can serve as security and / or valuables, real estate and also life insurance, which the bank can access if the borrower is unable to pay.

If there is no collateral, the customer’s credit rating is considered weak and he will not get a loan. If a loan application is rejected by the bank, the bank sees a too high credit risk after thorough examination, which means that the customer is unlikely to be able to afford the loan installments.

What to do if the bank rejects a loan application because of poor creditworthiness?
Now the chances of getting a loan are very limited. Either there is a private lender or you can try to take out an expensive foreign loan, which you get without any security, but with extremely high interest processing fees.

The best solution to the problem can be a loan with a guarantee from the bank. A relative, acquaintance or friend with a good credit rating can be considered as a guarantor. The guarantor is liable to the bank for the full payment of the loan if the borrower defaults. If two people are responsible for the loan repayment, the bank has enough security to get their money back and may grant the loan.

A loan with a guarantee should be carefully considered

A loan with a guarantee should be carefully considered

With a loan with a surety, the advantages are clearly with the borrower, but the risks with the guarantor. The guarantor has no benefit from his guarantee, but in the worst case it has to bear very negative financial consequences. He should check to what extent his financial means are still sufficient for himself if he has to step in to pay. A guarantee is often presented as a mere formality. It is also when the borrower actually pays off the loan entirely himself.

However, as soon as the borrower can no longer or does not want to pay off, the guarantor must step in immediately, without the bank taking any measures, such as a garnishment, to persuade the borrower to pay. The guarantor should also clarify in advance with the borrower how he can get his money back if the bank asks him to check it out. The guarantor cannot reclaim anything from the borrower without a written agreement. Anyone involved in a loan with a guarantee should only get involved after a sufficient period of time and careful consideration.

Can a loan with a guarantee be avoided?

Can a loan with a guarantee be avoided?

A loan guarantee is usually required by the loan provider if the applicant’s creditworthiness is insufficient. This requirement for credit security is usually justified, but not always. However, some credit providers always require a guarantor to double-secure the loan. For example, there are credit providers who generally request a spouse’s guarantee if the loan amount exceeds 10,000 USD.

However, if the borrowing spouse has a good credit rating, they should be able to do without the spouse’s guarantee. One could check the conditions of different loan providers – in some cases a guarantor can be waived.

Credit after debt relief

More and more people are forced to get their financial problems under control with the help of personal bankruptcy. Excessive debts that can no longer be paid off in installments force them to do so. Private bankruptcy is accompanied by six years of abstinence and thrift. Only when this phase of good behavior is over can you look back in the future and plan and reorganize life. But what happens if you want to take out a loan after this time? Is there a loan after the debt relief? And where?

The Credit Bureau creates problems

The Credit Bureau creates problems

Even if personal bankruptcy is a good way to effectively and consistently eliminate debt, it does have some disadvantages. The exemption from residual debt relieves the debtor of their debts. But only on one level. Because in the Credit Bureau exactly this residual debt relief is noted and rated as a negative entry. If you go to a bank and ask for a loan, the bank will make a Credit Bureau query.

Since the debt relief is noted as a negative entry, you will hardly have a chance to get a loan after a debt relief. Rather, the request and the rejection associated with it will provide another negative entry. So you have to go other ways to get a loan after the debt relief.

You will find it abroad or at a credit broker

You will find it abroad or at a credit broker

In such a case you will usually find what you are looking for abroad. A Swiss loan is also possible if you have already completed personal bankruptcy. Because Credit Bureau is not asked for a foreign loan. Rather, a steady job and a good income count when it comes to credit approval. You can also try to obtain a loan through a credit broker.

These brokers work with independent lenders who are significantly more flexible and accommodating in lending. However, this “lightness” usually has to be paid with higher interest rates and a processing fee. So you have to think carefully beforehand and calculate whether you want such a loan through an intermediary in these circumstances.

Find a good and fair loan with a low income

 

Loans are usually taken out to fulfill long-cherished wishes or to meet liabilities that could not be serviced without the additional money from the loan. A loan is therefore always sought if the reserves made are insufficient to fulfill the wish or to implement the planned project.

When taking out a loan, it is very important that the borrower has a good credit rating. This good credit rating can only be achieved if you have a high income. Because this income is needed to be able to repay the loan in the end.

Unfortunately, many consumers are not blessed with high incomes. Although they do regular work, they do not generate the income that the banks recognize as “high income”. In order for an income to have this rating, it must be clearly above the garnishment allowance.

It is certainly not a secret that it is not easy to find a good and fair loan with a low income. We would therefore like to show you at this point how you can take out a loan without a high income and what you should pay attention to when taking it up.

What creditworthiness says about a consumer

What creditworthiness says about a consumer

In order to make it clear to you why the banks and savings banks are not particularly happy when looking for a loan without a high income, you must first understand how and why the banks check the creditworthiness of their customers. How is it decisive for whether a loan can be granted or not.

In order to be able to determine the creditworthiness, the bank must carry out a credit check on the applicant. For this, information is not only obtained from Credit Bureau. Income and all expenses must also be shown openly. The bank then uses this information to create the so-called scoring value. If the scoring value is particularly high, the creditworthiness is good. If it is low, the creditworthiness is correspondingly poor.

Income therefore plays a very important role in borrowing and – in order to achieve a good scoring value – must be as much as possible above the seizure allowance. The net income is always assumed. In other words, the income that remains after deducting all taxes and cash contributions.

For an unmarried consumer who also has no maintenance obligations. The garnishment limit is currently 1,079.99 USD per month. Anything below this amount is referred to as low income and therefore requires a loan with no high income.

The Opportunities With a Low Income Loan

The Opportunities With a Low Income Loan

Even though it is relatively difficult to get a good loan without a high income, there are some ways to borrow. Consumer credit always comes first. You know this from the dealer you trust, who will be happy to offer you the right financing when you buy a new washing machine or kitchen. The specialist calls this financing consumer credit.

With consumer credit, you don’t get the money paid out and you can use it as you wish. Rather, the money is earmarked and automatically flows into the payment of the things you want to finance with it. This has the advantage that the dealer or the bank behind the consumer loan recognizes the purchased and financed items as security. Because she knows what they are worth and can keep them until you have paid all the installments.

For you as a borrower, this means that your income is not that critical to borrowing. Despite all this, they will inquire about it and you will have to state how much you earn. But if this is over 450 USD a month and you have a good credit, you can easily take out the consumer loan as a loan without high income. Without a guarantor or without a second applicant.

The second option for a high-income loan would then be borrowing with the help of a guarantee. For example, if you want to apply for an installment loan, the bank will probably first reject the loan application due to its low income. However, if you have a guarantor for the loan, the world will look much rosier again. Because the guarantor increases your creditworthiness and thus your creditworthiness. The risk of default for the bank is reduced, so that the bank can approve lending in a relaxed manner.

The only important thing for you as a borrower is that you can really repay the loan. Therefore, only take out a loan if you really have enough money to pay the monthly installments. Otherwise, there is quickly trouble with the bank, which then turns to the guarantor and demands the money from him. Because he is not only liable for you, but also for the loan. And until it is completely paid off.