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Details about foreign loan broker.

It has happened to everyone before that it becomes financially tight. In such a case, the relatives or the circle of friends are usually happy to help out. However, for many it is not possible to ask friends or relatives for a corresponding amount of money. And a normal financial institution would immediately reject any loan application due to poor creditworthiness or a Credit Bureau entry. But that does not have to be the end of your financing wishes. What some do not know – even with poor creditworthiness and without Credit Bureau information, you can get a loan.

What needs to be considered with foreign credit intermediaries?

First of all, the monthly loan repayment installments should be as low as possible. You should only expect as much as you can actually carry. The key to good financing is good conditions and low interest rates. The loan should also be as adaptable as possible. This includes special repayments without additional costs or the possibility to stop paying the installments for one month. Good financing on the subject of foreign loan intermediaries should include all of this.

However, there are certain things you should take into account so that nothing is put in your way as a student, pensioner, self-employed, unemployed, trainee or employee:

1. Set the loan amount as low as possible

In general, anyone who has considered the issue of foreign loan intermediaries should realistically assess the costs incurred from the start. If you have an overview of your expenses in advance, you will not experience any nasty surprises afterwards and can always pay your installments on time. It would undoubtedly not be wrong to plan a small financial cushion, the emphasis being on “small”, because if this buffer is too large, this would inevitably lead to high liabilities. Therefore do not take out a loan larger than is necessary. The better solution is to supplement the under-calculated needs with follow-up or top-up financing.

2. Structure and oversee your own finances

The first thing about a project is that you assess your financial situation correctly and then calculate the amount of the loan. Ultimately, this also does not apply to the topic of foreign loan intermediaries. Here, for example, a detailed weekly list of all expenses helps: So every day it is noted exactly what and how much money has been spent. In order not to overlook any hidden costs, small amounts should also be taken into account, such as the morning coffee at the bakery or the after-work beer in the pub. It is an excellent way to determine where one or the other USD can possibly be saved. Regardless of this, such a list also helps to assess the correct repayment rate.

3. Value care and accuracy

It is important to be careful, accurate and honest with all information about your creditworthiness and your own financial situation – especially when it comes to foreign credit intermediaries, with all information about your financial situation and creditworthiness carefully, exactly and absolutely honest. You should take enough time to carefully compile all evidence and documents. The honest and complete presentation of your finances gives you a serious impression, which has a positive effect on your chances for an instant loan or an emergency loan.

A really good credit broker can do a lot for you

A really good credit broker can do a lot for you

The intermediary will primarily support you in your search for a “loan without Credit Bureau”. However, the help offered does not only extend to pure mediation. Sometimes it also includes in-depth debt counseling. A professional broker will advise you in detail on a financing offer by showing you the advantages and disadvantages. He will also support you in compiling all the necessary application documents.

Advantages or disadvantages of loan brokerage

Advantages or disadvantages of loan brokerage

Advantages:

  • Mediation of loans even with poor creditworthiness
  • Detailed advice before submitting the application
  • Assistance in compiling the documents for the loan application
  • Contacts with lesser known financial institutions and banks
  • Reasoning aid for large amounts of funding or difficult personal circumstances
  • Good chances of cheap loan interest
  • Procurement of credit even if the creditworthiness is insufficient

Disadvantage:

  • Risk of brokering expensive loans
  • Doubtful offers are not always immediately recognizable
  • Possible costs for the loan brokerage

Also worth reading is the small credit without Credit Bureau Auskunft article

Many intermediaries have good connections to small and less well-known institutions and therefore the opportunity to negotiate better conditions for foreign credit intermediaries. Even if a case has little chance of success, it can be negotiated. Because of their good connections, they can e.g. B. explain negative Credit Bureau entries so that they are not evaluated as much in the creditworthiness check as in the computer-controlled processes of large banks. If one would send such an inquiry about foreign credit intermediaries to an established bank, it would almost certainly not work.

What distinguishes serious from dubious credit intermediaries

A broker who is reputable is genuinely interested in helping you obtain a loan for a broker abroad. In general, you as the applicant do not incur any costs for his services because he receives his commission from the bank.

Reputable credit intermediaries can be recognized by the following points:

  • You will receive specific information about terms, debit and effective interest, and loan amount
  • There are no costs for arranging financing
  • The company has a website including imprint, address and contact options
  • The company can be reached by phone without having to wait a long time

A dubious mediator can be recognized by these criteria

  • Cost collection regardless of the conclusion of the loan contract, but only for advice
  • You are promised a hundred percent loan approval
  • Credit applications are sent cash on delivery
  • Offers in the form of a financial restructuring
  • Unregistered home visit
  • Financing depends on taking out insurance
  • Calculation of expenses or additional costs
  • The broker only takes action if you sign a brokerage contract

What advantages do foreign credit institutions have with foreign credit intermediaries?

What advantages do foreign credit institutions have with foreign credit intermediaries?

Whether for the new car, a longer holiday trip, a new smartphone or the start-up capital to start your own business – loans from foreign banks have long ceased to be a financing option that you have to shy away from. In addition to the classic route to the house bank on the corner, consumers now also have the option of taking out loans from foreign institutions via the Internet. What speaks for a credit institution abroad are the much simpler guidelines for lending compared to Germany.

Therefore, poor creditworthiness or a negative Credit Bureau entry when it comes to foreign loan intermediaries only play a secondary role. In principle, such online loans are financed by Infra banks. This fact is particularly interesting for those borrowers who need a financial injection particularly quickly and have already been rejected by Cream banks. That would be z. B. Temporary workers, pensioners, self-employed, students, unemployed or trainees. When it comes to foreign loan intermediaries, it is particularly difficult for this group to obtain a loan.

Why a Swiss loan is a good alternative

Individuals who want to take out a loan because they are in a financial emergency often find it difficult. The reason: The chances of financing are reduced significantly with debt or with poor creditworthiness. A Swiss loan can be a real option in such cases. It means a loan from a Infra bank. A negative Credit Bureau entry is irrelevant for these banks because there is basically no request for this, which makes it extremely easy to find a loan. This is ideal, especially when it comes to foreign loan intermediaries.

Obtaining a loan without checking the creditworthiness as well as various collateral and proof of income is clearly not possible with Swiss financial institutions either. However, if you have a fundamentally positive credit rating and a negative Credit Bureau entry is the only problem with financing, the Swiss loan represents a real opportunity for foreign loan intermediaries.

Foreign loan intermediary: how it works

If you are looking for a foreign loan broker online, that is, “despite moderate creditworthiness”, you are basically thinking of a “loan without Credit Bureau”. All renowned credit banks are now checking the applicant’s creditworthiness. Even if this is not done through the Credit Bureau, it will be done through another credit agency.

There is actually no one who is at home in Germany and has no score or entry at Credit Bureau. If you hold a credit card or if you have opened an account with the bank, such a credit rating has already been created for you. There is therefore no “credit without Credit Bureau” at any bank. What is there, however, is a “loan despite Credit Bureau entry”. Strangely enough, many consumers mistakenly think that they have a “negative Credit Bureau entry”, although the statistics show something completely different: the large part of the entries are positive

It is best to determine beforehand whether the Score Index is in fact so poor that it might be difficult to release your loan application at a bank. Once a year, Credit Bureau grants both companies and private individuals a free query of the “Credit Bureau Score”. In order to be able to find out for yourself what personal data is stored, you can obtain a so-called self-assessment from the credit reporting agency since 2010. According to the Federal Data Protection Act (BDSG) § 34, you are normally entitled to this information free of charge, once a year. To do this, you can mainly call up your personal score (Credit Bureauscore), but also get information about whether someone has made a request about you in the past few months. You can request this data from “MeineCredit Bureau” at any time. Your score depends on different “ratings”. These ratings can range from 1 to 100. 100 is the maximum value and shows that the probability of failure is extremely small. In contrast, the risk of payment problems is much more likely if a person only has a score index of 50.

Our tip: This is how you can “delete a negative Credit Bureau entry”

It has certainly happened to everyone that they have not paid a due invoice. The reasons for this are often different: You were currently in a financial bottleneck, had to move to a new address or were on vacation at the time. Sooner or later there may be problems with an unpaid mobile phone bill. It happens faster than you think. The result is that there is a negative Credit Bureau entry and it is difficult to get a loan afterwards. It therefore has an impact on the application for a loan if the reminders or even payment requests reduce the score.

However, every consumer has the right to have an unfavorable Credit Bureau entry eliminated for their protection. It may happen that the credit agency has still stored information that is either incorrect or very old and therefore no longer up to date. Logically, such entries should definitely be deleted immediately. The deletion can be ordered directly from the credit agency. However, the removal will only be carried out on the condition that the claim does not exceed USD 2,000 and was paid within six weeks.

Your data at Credit Bureau – deletion of Credit Bureau data

The Credit Bureau data is automatically eliminated after a certain period of time even without your intervention. This generally happens:

  • after 12 months for information about inquiries; This information is only passed on to Credit Bureau contract partners for ten days
  • for loans 3 years after the year of the complete repayment (exactly to the day) of the loan
  • for information about unpaid claims, each after a period of three full calendar years (that is, at the end of December 31 of the third calendar year that follows the entry)
  • in the case of claims from online shops or mail order companies, provided that these have now been resolved

The benefits of a Swiss loan

Individuals in a tight financial situation can often not take out a loan. It is the people with debts or bad credit who are in dire need of money. In such cases, the last option is a Swiss loan. This is to be understood as a loan that a Swiss financial service provider issues. Such banks generally do not conduct Credit Bureau queries, which of course simplifies the search for loans enormously. As far as foreign loan intermediaries are concerned, this is an invaluable asset.

Taking out a loan without a credit check as well as various collateral and proof of income is clearly not possible with Swiss financial service providers either. If it is only an entry in Credit Bureau that worries you, the Swiss loan could be a real opportunity for you, provided your credit rating is so far in the green.

What is the “APR”

With foreign credit intermediaries, due to the greater risk of default, the credit costs are sometimes somewhat higher than usual. The “effective annual interest rate” and “effective annual interest rate” in particular play an important role. What is the “annual percentage rate”? Here one understands the annual interest costs for loans, which are calculated over the nominal loan amount. As a percentage, it is always dependent on the payout. In the case of financing whose interest or other price-relevant criteria can change during the term of the loan, this interest rate is referred to as the initial “effective annual interest rate”

A tied debit interest rate is fixed when a loan is released for the entire term. This means that even if there are fluctuations in interest rates on the capital markets, the nominal interest rate on which the “loan” is based remains unaffected. The advantage here is that a fixed borrowing rate gives you the certainty that your loan costs will always remain constant. You can therefore assume that the interest rate on the “loan amount” will remain unchanged throughout the term of the financing.

What does the loan term mean

What does the loan term mean

The loan term of a loan has a significant impact on the conditions that the bank grants to the borrower. This means that the longer the “loan term” for a loan, the smaller the individual installments that the borrower has to repay, and vice versa. So it is worth considering the different options regarding the loan term. However, it is not possible to keep track of all maturities for all loans.

The loan term or loan term is the time interval from the payment to the full repayment or repayment of the loan amount. The amount of the nominal interest and the repayment are the decisive factors on which the duration depends. The amount and number of installments logically influence the duration in particular. The repayment of the loan and thus the loan amount including interest and processing fees takes longer, the smaller the monthly installments. If loans run for five years or longer, these are classified as long-term loans.

What are loan fees

Loan fees are often referred to as closing fees, processing fees, loan processing fees or processing commission. Why these fees? Until 2014, the credit institutions calculated a special amount for the effort incurred for a loan request or the processing of the loan application. In May 2014 there was a change in the law. The calculation of the “loan fee” for a loan request was declared inadmissible. This also applies to checking the creditworthiness of the borrower. As a result, processing fees, depending on the amount of the loan, may no longer be required since 2014. As a rule, these costs were approx. 1 – 3 percent of the loan amount applied for, for example with a loan of USD 10,000 already USD 150 to 450. In principle, the fees already paid for the loan application or the credit request can be claimed back.

What is a lender

The lender is a natural or legal person who grants the borrower or borrower a loan for a certain period of time at an appropriate interest rate. As far as the term “lender” is concerned, this is generally used in the legal texts, although the terms “lender” or “creditor” are sometimes used in loan agreements.

For the lender, a loan carries a considerable risk of default, so a higher interest rate is usually charged for it. The lender is usually a bank, a savings bank, a building society or an insurance company. As for the rights and obligations of the borrower, these are regulated in the BGB (Civil Code).

What is the monthly rate

Repayments of financing such as “loans with poor credit ratings” are also made in the form of individual monthly installments. With loans, the monthly installment contains an important component – the interest rate. The current market-typical index always applies to interest on the capital market. The bank then calculates the interest rate. In general, it then passes this interest on to the borrowers at a corresponding premium.

Another component of the “monthly installment” of loans is repayment. Usually, the borrower determines the number and size of the monthly repayment, based on his economic circumstances. Annually for long-term loan contracts the repayment is mostly 1 percent. If the loan amount and thus the loan amount are to be repaid in a shorter period of time, a higher repayment must of course be set. Regardless of this, the monthly installments – depending on the amount of the repayment – are then significantly increased.

The monthly rate of a loan is therefore defined by the primary criteria of interest and repayment. On the other hand, the monthly installment for loans also includes the processing fees of the banks and the agency fees of the credit intermediaries. Although these costs are normally taken into account in the interest rate, they count as a criterion of the monthly installment to the total loan amount.

What is a debt rescheduling loan

What is a debt rescheduling loan

What is a debt rescheduling loan? This is a loan that someone takes out in order to be able to pay off a loan with expensive interest a little cheaper by means of debt restructuring. Furthermore, different loans can be combined into one. You can therefore disclose more than one loan for a debt rescheduling. In principle, the “debt rescheduling loan” is not applied to the previous bank, but to another bank. However, there is no reason why the loan for a debt rescheduling should be taken out again from the same bank – clearly only if the conditions are right this time.

You see, debt restructuring has several advantages. The principle sense and purpose, however, is that with the debt rescheduling loan, after taking up your new loan, you will have a lower financial outlay than before. It can already help you save money if the interest rate is even slightly cheaper.

What is the total loan amount

The total loan amount includes all fees that the bank customer has to repay for a loan to the bank. This is therefore not just the amount of the loan taken out, but the total amount including all additional costs that the customer repays to the financial service provider during the repayment within the credit period. The additional costs, which are added to the pure loan amount, may also include commissions or processing fees and the interest to be paid. Because all “fees and expenses” are included in the “total loan amount”, this is often significantly higher than the nominal amount of the loan.

The cost for residual debt insurance that may be taken out to hedge the loan amount is also part of the total loan amount.

What is the loan amount

As far as the actual loan amount, which is paid out to the borrower after approval of the loan application by the financial institution, is of course lower than the total loan amount. The amount of the payout may also differ because in some cases the “loan amount” is not paid out in full as a total amount. In the same way, this also applies to a “Swiss loan” or a loan.

It does not matter whether the applicant is a private person or a commercial enterprise, the bank will determine the available income or the current earnings situation for the loan amount before the application is approved. The size of the actual loan amount is completely irrelevant. For example, the applicant’s monthly income for a loan amount of USD 500.00 is checked in the same way as for a loan amount of USD 10,000.00.

In principle, a fixed monthly repayment is agreed for the loan amount within a specified time. These agreements are always in the written loan agreement. In the event that the borrower has the corresponding monthly income, he can also repay the loan amount more quickly with special repayments. Such special repayments are not always free of charge. If you are interested, you only have to look in the respective financing contract. If the last installment for the loan amount has been repaid, the contractual relationship ends automatically. If the borrower wants to take out a fresh loan amount, this must be agreed again in writing.

What are the credit rating criteria

Some potential borrowers ask whether there is a loan without assessing the creditworthiness. The answer to the question is clearly “no”. The credit rating is based on the result of the credit check and defines the surcharges on the loan. The result largely depends on the “creditworthiness criteria”. If the credit rating is positive, relatively low interest rates are required. A good result in determining the various criteria of the credit check is therefore of great benefit to the borrower. The classic credit rating criteria of financial institutions are often very different from bank to bank. Regardless of the following creditworthiness criteria, there are no differences between the individual banks. Also, all of the points listed are the same for every borrower.

  • What is the total income?
  • What is the employment relationship like?
  • Is the borrower a contract agent, civil servant, or officer?
  • Who’s the employer?
  • Where is the borrower’s place of residence?
  • Are there entries at Credit Bureau or other credit reporting agencies?
  • Does the borrower keep a household ledger with an entry-expense report?
  • Are there assets in the form of buildings or land?
  • What is the marital status?
  • Are there any existing loans and guarantees?

These are the prerequisites for foreign loan intermediaries

These are the prerequisites for foreign loan intermediaries

If you want to apply for a loan from a loan broker, you have to meet a number of criteria. Amongst other things:

  • Age over 18 years
  • Resident in Germany
  • Cream bank account
  • regular monthly income
  • sufficient creditworthiness
  • for earmarked financing, collateral such as real estate or a car

Which loan can you generally get despite insufficient creditworthiness? Mainly it is the private loan or credit private, which various credit intermediaries also have in the program. In this case, “lending money without Credit Bureau” does not go through a normal bank, but through one or more private individuals.

Tips on foreign credit intermediaries

If you would like to apply for a loan with a poor Credit Bureau score or unfavorable Credit Bureau, then first consider whether you are able to repay the loan de facto without major problems. The bank usually has good reasons to reject a loan application.

Remember: It is one of the primary business principles of credit institutions that all loans that {consumer borrow} are repaid on time, in full and with interest. It is therefore not the case that financial service providers are not interested in lending. If payment behavior was previously very inadequate, it must be expected that there will still be no punctual repayment. As a result, the application will of course be rejected. Another reason for rejecting the loan application is often that the minimum income available is not sufficient to repay the loan.

It is therefore important to compare the total income with the expenses before applying. Only then should you make the decision whether to apply for a “loan without Credit Bureau”. This is an excellent way to check in advance whether the loan can be paid without any problems or whether there could be difficulties afterwards. Please keep in mind that there can always be something unpredictable financially, which makes it difficult or even impossible for you to pay back the loan amount conscientiously. This could be a defective refrigerator, the defective car or a surprisingly high payment request from the gas or electricity provider.

Those who are smart can get competent advice from their personal credit advisor on a “credit with Credit Bureau entry”. You will receive exactly the help you need, because on the one hand you will receive excellent advice to find the right offer de facto and on the other hand you will have someone at your side who, if necessary, will assess your financial situation without prejudice. So you do not fall into a debt trap unnecessarily, which can easily happen with a reckless “take out loan despite Credit Bureau”. In addition, the loan broker can provide competent advice on a merger of several loans, ie, “debt restructuring despite Credit Bureau”.

If you have the impression that you are illegally refused a “loan with Credit Bureau” or a “credit with Credit Bureau entry” by the financial service provider, it may be the case that your Credit Bureau score leaves something to be desired. Important: You should definitely take the opportunity to check the Credit Bureau score free of charge once a year and have incorrect or outdated data deleted immediately.