A negative Credit bureau exists if the Credit bureau information contains at least one negative characteristic. The answer is inconsistent as to whether previous financial misconduct marked as done should also be regarded as bad Credit bureau, the credit protection itself classifies this information as neutral. Small loans are mostly loans up to a maximum of 5000 USD, some financial institutions use the term regardless of the loan amount as a synonym for non-earmarked consumer loans.
Is it possible to borrow from poor Credit bureau?
Consumers predominantly assume that they will not receive a small loan despite bad Credit bureau. A corresponding lending practice applies to some of the commercial banks vis-à-vis new customers, but other credit institutions examine each individual loan application. In this case, you approve a small loan despite a negative Credit bureau, if your customer credibly explains the interim improvement in his overall financial situation. This is most likely to be the case if the loan applicant was unemployed when a negative Credit bureau entry was forfeited and has since found a new job.
Anyone who uses other products at the selected bank or has already taken out a loan from the bank in the past and repaid it properly is easier to obtain a loan than a new customer despite negative Credit bureau characteristics. It is also possible to apply for a loan via an online platform for arranging private loans. On the corresponding websites, private lenders decide which projects they support.
You will receive an indication of the poor creditworthiness of a loan seeker who is of course not known to you, and you can decide for yourself whether to grant a small loan despite a negative Credit bureau. Many of them deliberately grant loans to platform members, which banks are reluctant to accept as customers. A prerequisite for a small loan despite negative Credit bureau entries is that the negative characteristics are soft.
Borrowing without Credit bureau
With a hard or several soft negative characteristics, a small loan is hardly available in Germany despite a negative Credit bureau. As an alternative, you can take out a small loan without Credit bureau. Appropriate loans are granted by banks from Switzerland, with the payment and the subsequent repayment made in USD.
It is therefore not a foreign currency loan, so there are no exchange rate risks. For amounts up to 3500 USD, the Credit bureau-free small loan in Switzerland can be applied for directly from a financial institution; for larger sums, it is advisable to hire a credit broker. Such a person works seriously if he does not charge any upfront costs, but only an appropriate performance fee.