The car loan despite credit bureau is not impossible! The credit bureau is the protection community for general credit protection. This means that the credit bureau helps the banks in risk assessment. In Germany, the majority of banks have entered into cooperation with credit bureau. A negative entry in the credit bureau, represents in most banks in the Federal Republic, an obstacle to lending. Even with a negative credit bureau you have the chance of a loan.
Even with a negative entry to the above organization, it is still possible to get funding for the new car.
When granting car loans, despite a negative query by credit bureau, these lenders also want to make sure that they get their capital back.
- Age of Consent:
- Permanent residence:
- Employment contract:
Required documents required by the lenders:
A copy of the identity card which is valid. The ID card is required, because on this all relevant data can be found for me, for example date of birth, place of birth and also the current address.
The lenders demand for the car loan despite credit bureau also the last three pay slips. Based on this, the salary payments can be checked to see if they match the details of the borrowers.
Reasons for rejection:
A firm ground for refusal is the opening of insolvency proceedings against the applicant who applies for the loan. In insolvency proceedings, the debtor practically declares that he is insolvent. For this reason, lending is also not possible in this case.
If an arrest warrant or a prison sentence has been issued against the applicant, a positive credit decision is not possible.
After submitting the affidavit no loan can be taken. This is a disclosure of assets. It is stated that the debtor is absolutely destitute.
Social benefits may also not be obtained. As social benefits Hartz IV or the like is meant.
There are two possibilities when applying for a car loan, despite credit bureau. Once the borrower objects to the credit bureau inquiry. Credit limit: 7500, – Euro. In the second option, he agrees to the data transfer to credit bureauabfrage and can thus secure a higher volume of credit.
Conclusion: A negative credit bureau entry is not an end of the world. You can still finance a car as long as the above requirements can be met by the borrower. Under certain circumstances, the customer must expect a comparatively high interest rate. One rule is that the higher the default risk of the loan to the lender, the higher the interest rates. Good prospects have people with a regulated life.
You can change, as the banks see it. For example, a negative credit bureau entry is due to an unpaid mobile bill. This entry is not as tragic to the loan broker as an arrest warrant.
Banks abroad are not affiliated to credit bureau. Therefore, a loan request is often worthwhile at banks based abroad. Not all banks offer customers from Germany the opportunity to receive a loan!
5 tips for car loan despite credit bureau
1st Swiss car loan
In many cases, a car loan is completely excluded with a credit bureau entry. Anyone who needs credit despite credit bureau has to look abroad. Credit intermediaries specialize in such offers and contact banks, most of which are located in Switzerland or Luxembourg.
Here, the credit bureau is not checked, so that only the creditworthiness of the customer counts, which he has proven by his documents. But an income must already exist. In addition, collateral should also be available, although usually the car is used as a rental object.
2. Procure personal loans
An effective way to get a car loan despite credit bureau is to get a personal loan. This can be applied for on various platforms in the network, with the credit bureau rather plays a minor role. The application must be placed on a corresponding platform as a loan project, in which case private investors invest.However, at least there must be income available to pay off the debt at the end. In addition, these providers require a certain amount of collateral. In general, however, the vehicle is also loaned at the end of this loan, which is then picked up again if the rate can not be paid.
3. Take a close look at interest rates
In a car loan, despite credit bureau, the interest rate should be scrutinized. This usually turns out to be significantly higher than, say, a regular vehicle loan. Thus, the estimated interest rates can be between 4.99 and 15.99 percent. However, the latter value is not the standard but rather the exception. Therefore, interest rates should be talked about from the beginning.
Even if no credit bureauabfrage takes place, good interest can still be achieved. Who can even teach collateral, has another advantage, because here, the interest rates are usually much cheaper. If you want to finance at the end on normal terms, you should teach a guarantor, but it must be clear that the loan is borne by him alone.
4. Used or new
An important question in a car loan despite credit bureau is to opt for a used or new car. For a new car, the interest rates are usually much cheaper, because the amount is correspondingly higher. However, such sums are granted only in exceptional cases, so that the likelihood of the award with declining creditworthiness – for example, by a low income – is getting worse.
With a used car the possibilities look already better, however the interest rates are clearly worse, because in the case that a rate can not be paid, the car is not so easily further to sell. In addition, he loses significantly with every kilometer driven, so often not the entire loan amount can be covered.
5. Negotiate terms
It should necessarily be negotiated the term according to their own needs. Those who are more likely to need a long period of time, as they can only pay low installments, should immediately approach the consultant or broker for this circumstance. In turn, interest rates play an important role, so that a loan offer with the lowest possible interest rate should be chosen.
Who can afford it and only gets a loan because of a negative entry in the credit bureau should settle the installments as soon as possible. This keeps the additional costs for the loan low even with a high interest rate.
Beware of premature repayments:
These should be discussed in advance because of the prepayment penalty and possible time limits.
Without any difficulty, the car purchases despite credit bureau, if the buyer has saved enough money and can pay the car to be purchased in cash. This is rarely the case, especially since the negative credit bureau points to a difficult financial situation. For this reason, most vehicle buyers are dependent on finding a car loan despite credit bureau. For this, different approaches are conceivable.
Use a credit without credit bureau for buying a car
Swiss and Liechtenstein banks offer a loan without credit bureau for free use, which can also be used for a car purchase. However, the loan amount amounts to only 3500 Euro or 5000 Euro, with individual federal financial institutions also 7500 Euro are possible. The figure in euros instead of in CHF corresponds to the actual loan settlement, which is carried out for German customers of Swiss banks in the European common currency. The above amounts are sufficient for the purchase of a used car, but not for the purchase of a new car.
The almost simultaneous admission of several loans from Switzerland fails because of the routine request at the ZEK. This information service is comparable to credit bureau and collects the data on financial contracts concluded in Switzerland or Liechtenstein. Debt-free loans are also available from Luxembourg banks through a credit intermediary. With these, other loan amounts from Switzerland and the special processing as a vehicle loan including the security transfer of the financed car are possible.
To take up a domestic car loan despite the negative credit bureau
Nowadays, not all domestic banks with negative credit bureau reject every loan application without any ifs or buts. Instead, more and more financial institutions are going to a case-by-case review. This is more favorable to the applicant in vehicle financing than in the case of non-earmarked installment loans, since the vehicle’s transfer of ownership reduces the credit risk. Private car buyers find it difficult to track down the German providers of vehicle loans despite credit bureau.
It is therefore advisable to hire a credit intermediary to find a suitable loan offer. Costs arise only with successful mediation. In many cases, the interest rate savings neutralize the placement costs, because the service providers can often negotiate special conditions for their customers thanks to their market position.
Borrowing despite credit bureau on the CarRbank
The CarRbank, which belongs to the manufacturer group, is interested in both the purchase financing and the highest possible sales figures. It is therefore more willing than an independent commercial bank to carry out the vehicle financing even if the buyer is bad at credit bureau. Ideally, the interested vehicle users offer a higher than the usual down payment on the car price, as such is considered an indication of a better credit rating.
Likewise, if the car buyer decides on a model for which sales promotion is advisable, the chances of a credit line loan increase, in spite of credit bureau. This applies to new cars, if a speedy model change is imminent or individual vehicles sell worse than expected.
Recognizable these car models are often on loan offers for zero-percent financing or at least compared to the other vehicle variants significantly reduced lending rates. With bad credit bureau it is conceivable and understandable that the CarRbank demands a reasonable interest surcharge.
Lend a life insurance for the car purchase
The lending of an existing life insurance is also possible for the purpose of buying a car with existing weak credit bureau. Since the policyholder is liable for repayment of the loan with his own subsequent disbursement claims, the bad credit rating has no impact on lending.
It should be noted, however, that the car buyer does not lend a Vertew contract or Purie contract with the purpose of purchasing a motor vehicle. This behavior is considered to be a detrimental use of life insurance and promptly leads to the recovery of received subsidies and tax benefits.
Apply for a private loan to buy a car from bad credit bureau
A good opportunity for auto financing despite negative credit bureau exists on the platforms for personal loan brokerage. Before being placed on the platform, the operator collects information from credit bureau, but in principle he does not reject applicants for soft negative features. For the actual payment of the desired car finance, it is necessary to convince enough private lenders of their own project.
Individuals make the decision about lending mainly based on the planned use of funds. Therefore, detailed information about the cause of the necessary purchase of a new car regularly leads to an accelerated drawing of the set credit request.