(ra). Sooner or later in the course of their lives, everyone will find themselves in a situation where a loan is necessary. Be it to finance a new purchase or to meet a financial bottleneck. However, this loan is not always approved by the house bank. A negative Schufa entry is often to blame.
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Banks don’t just lend to their customers. Instead, each application is carefully examined. On the one hand, this is because legal regulations are intended to prevent consumers from falling into a debt trap because they cannot repay the loan. On the other hand, the bank wants to protect itself against loan defaults. Because if the borrower does not repay it, the bank is left with the debt. That’s why she checks the creditworthiness (creditworthiness) of the customer. This depends on several factors. An important factor here is the so-called Schufa score. The lower the value, the worse the credit rating.
What is the Schufa anyway?
If the loan is rejected by your own bank, the disappointment is great at first. However, this disappointment quickly gives way to astonishment when those affected hear that the bad Schufa score is responsible for the rejection. Many do not know what is behind the Schufa and where they got this data from. Schufa Holding AG is the largest credit agency in Germany, which automatically collects and stores the data on the creditworthiness of every person who is registered in Germany. Schufa stands for “Protection Association for General Loan Protection”.
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The data that Schufa collects about people flows into the Schufa score one that represents a person’s creditworthiness. The value indicates how reliable a person is in meeting their payment obligations, e.g. such as utility bills and credit card payments, and how likely it is that they will continue to do so in the future. This makes the Schufa score an important tool for banks, but also for landlords and other contractual partners to be able to assess the creditworthiness of the customer.
If the loan application is rejected because of a bad credit bureau score or even a negative credit bureau entry, the people affected usually don’t have many options. A renegotiation is unsuccessful in most cases and an improvement of the Schufa score is only possible in the long term. Other banks will probably also reject a loan application for the same reasons. One way to still get a loan is to find a guarantor. This steps in if you can no longer pay off the loan yourself.
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credit without
The easiest and most convenient way to get money is to have a Credit without receiving a Schufa query. There are many loan providers on the Internet who also offer a loan to people with a bad Schufa score or a negative entry – or who do not even carry out a Schufa query. Such offers are particularly advantageous if you need a loan quickly and don’t have time to look for a guarantor or improve your Schufa score.
It should be noted, however, that the conditions of these loans are significantly worse. After all, the lender has an increased risk, which he pays for. Interest rates are often high and the maximum loan amount is usually in the 4-digit range.
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