Payments are payments that a borrower has to pay to process their loan application, even if it is rejected. Credit intermediaries in particular justify the calculation of preliminary costs with the expenses incurred for processing submitted loan applications.
The calculation of preliminary costs is in any case an indication of the lack of seriousness of a credit intermediary, since any calculation of fees before a loan is prohibited. One of their business risks is that the bank or credit broker incurs costs even if a loan is not granted.
Part of the cost of a loan application check is the fee for the Credit Bureau request. This request protects lenders from defaults by lending to likely defaulting customers. The Credit Bureau collects data about every consumer, as having a Credit Bureau entry, people with existing negative characteristics regularly refer to themselves.
Loans in Germany despite Credit Bureau entry
It is by no means entirely impossible for German credit institutions to obtain a loan despite Credit Bureau and without any upfront costs. If the existing negative entry is a soft feature that was forfeited a long time ago, some banks will issue a loan without requiring additional collateral. Due to the highly automated loan processing, this applies to instant loans on the Internet less frequently than to loans with a processing time customary in banking, since only this enables the credit documents to be checked.
Furthermore, the improved financial situation can be explained in a personal credit discussion, so that a loan can often be successfully applied for at a bank’s office despite Credit Bureau and without any upfront costs. If the bank insists on further collateral, the borrower can provide a surety.
This should show a Credit Bureau without negative characteristics and have a sufficient income. It is not uncommon for borrowers with Credit Bureau negative characteristics to have life insurance or pension insurance. If you lend to them, your insurer is not interested in existing Credit Bureau entries, since the claims from the policy completely cover the loan. Riester contracts may not, however, be lent.
Borrowing in Switzerland
If the fixed income is high enough, a loan can be taken out with a Swiss bank despite Credit Bureau and without any upfront costs. This loan is granted not only in spite of, but entirely without Credit Bureau, especially since the federal credit institution, as a non-contractual partner of German Credit Bureau, is neither authorized to make a credit rating request nor to submit reports on borrowing.
To compensate for the lack of credit information, Swiss banks require a higher minimum income for lending and at the same time limit borrowing to an amount of 3500 dollars; some banks also allow 5000 dollars in loans. Apart from the interest, there are no costs for Swiss loans, as the bank transfers the approved money in dollars and maintains a German checking account for repayment.