The private credit checker query is an essential part of borrowing – whether it is an instant loan, overdraft facility or small loan. Because the credit agency provides information about whether a person is creditworthy or whether they have difficulties in meeting their payment obligations. But even with a negative entry, you can apply for funding. Whether a credit without private credit checker is serious, what role the credit agency plays for banks and a lot more information can be found below.
The most important things summarized:
- private credit checker protects companies against payment defaults and consumers against over-indebtedness.
- Lenders are obliged to check the creditworthiness of the applicants.
- Some banks do not ask for private credit checker.
- A loan without private credit checker information is associated with comparatively high interest rates.
- The private credit checker-free loan should only be applied for in an emergency.
What is a loan?
A loan, also called a loan, is a sum of money that is made available to a borrower by a lender. The purpose is also very diverse for a loan without private credit checker and can be used for a car, for example. Both banks and private individuals can act as lenders. The borrowers, i.e. the beneficiaries, undertake to repay the amount plus interest within a predetermined period. With a classic installment loan, they repay a fixed amount every month.
Interest is the price that consumers pay for the loan. However, lenders and banks do not give the sums of money unselfishly. They require payment for making the financial resources available to the borrower. These fees are calculated in the form of interest, which is measured on the basis of the financing amount. Accordingly, the borrowers always pay back a higher amount than was provided to them.
private credit checker helps to classify a customer’s solvency and reliability. The loan amounts can range from a few hundred USD to several million USD. For banks, a default on the part of the customer would be associated with losses. The higher the loan, the more money a bank could lose if there were no repayments. To protect themselves against possible losses, the credit institutions check the creditworthiness of an applicant in advance. You want to find out what the payment behavior of the potential borrower is like. Has he proven to be a reliable contract partner in the past? private credit checker is helpful to find out.
Function and tasks of private credit checker
The private credit checker ( Protection Association for General Credit Protection ) is the largest credit reporting agency in Germany. It registers transactions that affect the payment behavior of consumers in Germany. Contractual partners of private credit checker are, for example, banks, mobile operators, mail order companies and many other companies and institutions. Banks provide private credit checker with information, for example, when a person opens an account or takes out a loan. Mobile service providers and insurance companies inform private credit checker of existing contracts. They also inform the credit agency if the bills are not paid regularly. On the basis of this and similar information, the credit agency can make an assessment of the solvency of a consumer. If a person has many payment obligations such as loans and mobile phone contracts, their financial resources are already limited. If enforceable titles are added, this is an unmistakable sign that a consumer’s solvency is already limited.
However, private credit checker not only registers negative aspects, but also information on the praiseworthy payment behavior of a consumer. If, for example, he has repaid existing financing within the agreed time, this is considered positive and the credit rating increases.
No fear of private credit checker: sense and purpose for consumers
The private credit checker can become a burden for some applicants. Because with a negative entry or a bad credit rating, the credit agency causes difficulties in concluding credit or mobile phone contracts. The business enterprise fulfills an essential purpose: it protects consumers from over-indebtedness. By checking existing payment obligations, it can be avoided that people apply for further financing, the monthly installments of which can lead to a situation that threatens their existence.
For many consumers, fears about private credit checker are unfounded. Because, according to the company, around 90 percent of all recorded people only have positive information. Added to this is the fact that positive features such as paid-off loans and granted credit facilities also support lending. With a good private credit checker score, consumers can demonstrate that they are considered solvent. The credit agency also does not store negative entries permanently. Depending on the reason for the entry, the company has to meet certain deletion deadlines.
German banks and private credit checker
As a rule, there is no way around private credit checker when borrowing. Because banks check the creditworthiness of their applicants not only in their own interest, but also because they are legally obliged to do so. If they were unable to access the information from the credit agency, the applicants would have to provide countless documents with which they can prove their creditworthiness. Accordingly, the private credit checker simplifies the application process and protects the credit institutions against financial damage and, in the end, also prospective borrowers against further indebtedness / over-indebtedness. For this reason, there are only a few banks that provide a loan without private credit checker information and a credit check.
Loans without private credit checker information
Some credit institutions offer a so-called private credit checker-free loan. However, since financing without a query poses a great risk to the bank, these loans are significantly more expensive in terms of interest rates than traditional loans. In addition, applicants must have correspondingly high proof of income. Some institutes also require collateral such as guarantees and require that applicants have been in permanent employment for at least six months.
Swiss credit: loan despite negative private credit checker
The so-called Swiss loan is made available by banks from Switzerland, Luxembourg, Austria and Liechtenstein. These countries do not use private credit checker information, which is why no query is made when submitting the application. Likewise, the loan is not registered with the credit agency. This means that consumer creditworthiness is not affected by the financing.
Tips for consumers: Secure financing without private credit checker
Before consumers make a loan request without a credit check, there are a few things to consider. The following tips clarify which alternatives to private credit checker-free credit exist and what to look for when comparing them.
Request financing with private credit checker first
The majority of all applicants misjudge their own private credit checker score. A reminder in the past or the one-off arrears of an installment do not immediately result in a negative entry. Therefore, consumers should first request a classic loan with lower interest rates before applying for a private credit checker-free loan.
Use credit comparison with condition requests
Before applying for a loan, it is recommended to compare different providers. Consumers should pay attention to what information is passed on to private credit checker. The sole “condition request” is not relevant for the credit agency. However, if the intermediary reports a “credit request”, this will be registered by private credit checker. Frequent and above all several inquiries affect the scoring and worsen the creditworthiness.
Apply for a loan without private credit checker only in an emergency
A loan without a private credit checker query is associated with high interest rates due to the increased risk for the banks. It is not uncommon for credit institutions to charge double-digit interest rates, which are even more expensive than overdrafting the bank account. A private credit checker-free loan should therefore only be applied for in an emergency, i.e. if there are no alternatives.
Creditworthiness tips: This is how creditworthiness can be improved
Those who plan to take out a loan in the future should start improving their creditworthiness at an early stage. Because private credit checker not only stores information about current loans, but also takes personal and financial circumstances of the people into account.
Use as few accounts and credit cards as possible
The credit agency evaluates the existence of a current account as positive and improves the private credit checker score. However, multiple accounts, possibly even at different banks, have a negative impact on the scoring. To increase creditworthiness, consumers should pool their checking accounts and have as few credit cards as possible.
To meet payment obligations
Anyone who accidentally fails to pay an invoice and receives a reminder does not have to fear a negative entry. However, companies can send private credit checker a corresponding notification after a second four weeks notice. There are shorter notification periods for credit installments, which is why they should always be paid on time.
Cancel old contracts
The credit agency records existing contracts with banks and mobile operators. Because these go hand in hand with payment obligations that influence the creditworthiness of the people accordingly. To improve creditworthiness, consumers should check to see if they have old contracts on their behalf that they can cancel.
Have incorrect entries deleted
At private credit checker, too, errors can occur that register incorrect information about a person. By requesting the free self-disclosure, consumers can check whether the existing data is correct. If it is incorrect information, the credit agency must correct or delete it.
Conclusion: Only apply for a loan without private credit checker in an emergency
Refusing a loan is obviously annoying for consumers. Nevertheless, you should honestly consider the reasons for this and check whether financing is really an option for you. If there is already a debt or there are many payment obligations, a loan without private credit checker can potentially threaten your financial existence. If the loan application is rejected due to an incorrect entry, the credit agency must correct or delete it.
Whenever possible, consumers should always choose a credit check. Because a loan without a private credit checker query not only causes higher costs, the applicants also have less flexibility in terms of loan amount, term and installments.
and the self-employed in finding a low-interest offer with good conditions.