In Germany, the situation is almost hopeless to get a loan with a negative credit rating. Even an overdraft facility on the checking account is rejected under these circumstances. But that is not a reason to waive a loan. Many consumers are already familiar with the credit from foreign banks. What you need to know is explained below.
Many consumers have already used it, the foreign loan. Unlike with Cream Banks, Credit Bureau is not very important. It is not required for a loan approval. Nevertheless, the necessary collateral is not waived for a foreign loan. An employment relationship subject to social security contributions without a fixed-term contract and without express notice of termination is the necessary security for the bank. A copy of the income must be provided in the form of a salary or wage slip. The bank also needs the latest bank statements and an employment contract.
The sending of these documents not only serves as proof of employment and income, but rather the bank wants to see whether the employer has already received attachments. These are listed in the proof of income. If this is the case, there is no credit from foreign banks.
Advantages and disadvantages of this loan from abroad
The advantages are obvious. This is the last chance for consumers with a negative credit rating to get a loan at all. In addition, there is no Credit Bureau examination and this credit is also not reported to Credit Bureau. Interest rates are only marginally higher than for credit-related rates at Cream Banks.
Unfortunately, a loan from a foreign bank also has disadvantages. A minimum net income of around 1,100 USD is required. Those who earn less do not get this loan. It is also not an advantage that the borrower is not flexible with the repayment. The monthly rate is fixed and cannot be changed. As a result, the runtime is always the same. In addition, the loan amount is limited to USD 3,500 or USD 5,000 for high-earners. The self-employed, freelancers, pensioners, unemployed or students have no prospect of success at all. Foreign banks do not consider you as a borrower.
Serious or not?
The loan from foreign banks is reputable if you go to the right places. Lite Bank in Liechtenstein is the only bank with a license to grant Credit Bureau-free loans to Germany. In addition, intermediaries can also be used as help. However, you should be careful here, as there have unfortunately already been irregularities. Most mediators work seriously. However, if advance payment, visits to a representative or insurance are required, these offers should be avoided. As a rule, there is no loan contract at all.