Avail the credit from foreign banks – an alternative way.

If you need a loan and have a bad Credit Bureau, you will usually not get a loan here in the country. As a way out, the loan is offered by foreign banks, it is also called Swiss credit. Interest rates are very low at the moment, which is actually a good thing for lending, but the demands that banks place on loan seekers are very high. If there are now credit problems on the part of the negative entries in the Credit Bureau, the loan from foreign banks can be an option.

Loan from foreign banks – who uses it?

Loan from foreign banks - who uses it?

The credit from foreign banks is standardized, so to speak, which means that this form of credit is advertised by credit intermediaries. You can find the brokerages on the Internet and see yourself as an intermediary between the loan seeker and the bank. Generally, a loan seeker can make his loan request to a foreign bank himself. But since these banks are very cautious, you won’t find them immediately and if there is a credit intermediary in front of them. Even Google only provides unreliable information about which foreign credit bank still approves non-Credit Bureau-free loans.

When banks in Germany receive a loan application, they first check the creditworthiness of their customer. That means the income is being tested, a Credit Bureau query is made and the permanent position is checked. The bank will also draw up a budget, with financial leeway being very cheap. The income should be above the garnishment exemption limit and have a garnishable share of at least 100 USD. The Credit Bureau is not relevant because these banks do not query the German credit reporting agency. The loan is also not entered.

Applying for a loan from a foreign bank is mostly due to creditworthiness problems. Getting bad credit can happen for very simple reasons. Think of an unpaid invoice from the mail order business. A reminder was sent and the bill was paid after the last reminder. After all, everyone can forget something, is the motto of many customers.

But “forgetting” has a negative effect in mail order. The Credit Bureau receives a negative entry and the customer feels the unpleasant consequences of not receiving a loan and if only under difficult conditions. The entry does not disappear on its own, the deletion must be requested from Credit Bureau with proof that the invoice has been paid. The entry then receives the note “done” but the entry remains visible for three years.

The history of Swiss credit

The history of Swiss credit

In many cases, this group of people turns to a foreign bank, including a Swiss loan, because these funds used to come primarily from Switzerland. Until 2009, this was a large loan provider that advertised the Credit Bureau-free loan, but it no longer exists. Until 2009, Across Lender was the market leader in this area. A legal battle flared up and the Fidium was prohibited from brokering loans to Germans.

It has only been possible since 2010 to get a serious Swiss loan for Germans. In the meantime, Litebank from Liechtenstein has the monopoly for these loans and, as far as is known, is the only provider. The bank operates according to a well-known model and has adopted the conditions of the previous credit providers.

Advertising on the Internet suggests that credit from foreign banks, credit-free credit can do without a credit check, but this is not the case. The credit check is only carried out without Credit Bureau, but the bank asks the public debt register. The directory is not a database that can be easily used. It is conducted in the individual district court district and the request must be made in writing. If you have entries there, such as an affidavit, you can save yourself a loan application.

The conditions

The conditions

The other credit check is designed for net earned income. As mentioned before, it must have a garnishment exemption limit and a minimum income. For a single person without maintenance obligations, a net loan of $ 3,500 is due for $ 1,130 per month. With the other loan amount over 5,000 USD, it is already 1,600 USD. For those who are married and have children, the garnishment exemption limit is increased, ie there must be a higher monthly net income.

As mentioned, the loan amounts are $ 3,500 or $ 5,000. The interest rate is around 11-12% depending on the credit rating, the terms of both loans are 40 months. In addition, the applicant must submit an open-ended employment contract, a time limit is not recognized, and no trial period. Unemployed, self-employed or social welfare recipients do not receive the loan from a foreign bank.

The loan from foreign banks – without Credit Bureau

The loan from foreign banks - without Credit Bureau

Customers with low credit ratings are not the only ones who see a loan from foreign banks as a good choice of loan. For example, if you are planning to build a house and do not want to burden your credit rating with another loan, you can choose a loan from a foreign bank. Since the credit is not entered in the Credit Bureau, the creditworthiness is retained. The applicant can receive the best conditions for their planned house construction from the donor bank.

The loan can easily be applied for through a credit intermediary. After the loan application has been submitted to the credit intermediary, the credit intermediary makes a preliminary loan approval based on the entered data. The credit broker will inform you of the necessary credit documents. In most cases, proof of income from the past three months, often also bank statements from the past three months and a copy of the employment contract are required.

Once the bank has checked the documents, the final loan approval is given. The loan seeker should know that the loan broker does not give the loan approval, but the bank. However, the commission of the credit intermediary must be paid, but only after the loan approval. If this is calculated at the beginning of the loan application, prepayment or prepayment or the signing of insurance documents, this broker is not serious and should not be booked.

To get a loan from a foreign bank, the applicant must be 18 years old and should not be older than 58 years. His place of residence and his checking account should be in Germany.



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