For various reasons, people need a loan. Even today, it is difficult for people with income to find a suitable loan with reasonable terms. Since it is common to check Credit Bureau before banks give a loan, it is particularly difficult for people with a negative credit rating, i.e. a negative Credit Bureau entry, to be able to take out a reasonably passable loan. Add to that the prospective borrower has no job, the situation seems almost hopeless. What is a solution in any case is to borrow the necessary capital from friends or acquaintances. But are there other options?
A loan for unemployed people without Credit Bureau – the solution
There are opportunities for unemployed people with negative credit ratings to get a loan. It is necessary to separate serious from dubious offers.
In the worst case, a loan for unemployed people without a Credit Bureau can lead you to a money shark that takes the last cent out of your pocket. Loan sharks, which are mostly private money providers, work with lure offers, which then turn out to be much more expensive than previously announced. Commissions and processing fees are due that the unemployed cannot afford in the end.
Serious offers from banks
In principle, banks either provide loans for the unemployed, but the condition is that the Credit Bureau query is positive and security is brought in, or you take out a Swiss loan that is granted without a Credit Bureau query but requires proof of income.
Getting a loan in Germany without a Credit Bureau query or with a negative Credit Bureau entry and even as an unemployed person is almost impossible.
The only chance to get a loan under these conditions is if the borrower can provide reliable collateral. These include a solvent guarantor. Its solvency is checked by the bank. He must be creditworthy, that is, have enough income to cover his living expenses if the worst comes to the worst and to be able to shell out the installments instead of the main debtor. The personal guarantee is popular with the banks: In this case, the bank can immediately indemnify the guarantor if the principal is in arrears, without first suing the unemployed borrower and having him executed.
Furthermore, as collateral for a loan for unemployed people without Credit Bureau, a home, property or life insurance are required. Life insurance can be used if a loan for unemployed people without Credit Bureau would not be approved. The policy can be lent at a certain amount of the surrender value. Real estate can be attached in the event of the borrower’s insolvency.
Future prospects crucial
With a loan for unemployed people without Credit Bureau, the borrower’s efforts to find a job are crucial. It only works with the loan if it has taken you in as an unemployment benefit recipient, if you do not slip into the Social Welfare benefits. Because this social assistance is usually not enough to cover the loan installments and at the same time to support themselves.