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Conditions to avail a Credit Bureau free loan from Liechtenstein.

The Credit Bureau-free loan from Liechtenstein comes from Litebank and that since 2010. Previously, these loans came mainly from Switzerland, hence the name Swiss loan. For loan seekers with poor Credit Bureau, these loans are often the lifeline. Whoever has a bad Credit Bureau often gets no credit in this country. The way out is a Credit Bureau-free loan from Liechtenstein. However, this bank has strict requirements for its customers.

The outlook

The outlook

In general, a Credit Bureau-free loan from Liechtenstein is easy to obtain. Under the name of Swiss credit, a credit offer is provided that does not get credit in Germany for customers with poor credit ratings due to negative entries in Credit Bureau. Until 2009, these loans came mainly from Switzerland. There are also other foreign banks such as those from Luxembourg or Austria to name just a few, which also offer clients Credit Bureaufree loans.

The re-establishment of Litebank was necessary because the highest German court prohibited the then large credit agency  Across Lender from brokering loans to Germans. Across Lender had no license to operate this business, the court ruled. As far as is known, only Litebank has this approval. The bank now has a monopoly on Credit Bureau-free loans.

One could only call private donors as competition. It should be noted that a Credit Bureau-free loan from Liechtenstein can easily violate laws. Think of dubious credit brokers here. A Credit Bureau-free loan from Liechtenstein has thus taken over the market leadership. Hence the fact that many heavily advertised Credit Bureau-free loans are heavily overdrawn.

A Credit Bureau-free loan from Liechtenstein is not present for every customer. It is a loan that is standardized and treated according to the model of the previous Swiss loan. Even the smallest deviations are not allowed.

Credit Bureau-free credit from Liechtenstein – the conditions

Credit Bureau-free credit from Liechtenstein - the conditions

The Liechtenstein loan can be applied for through a credit intermediary and directly with the bank. If you use an intermediary, you can get convenient credit brokerage, because he will handle the whole credit process. However, as often promised in advertising, there is no faster processing or other better conditions. The procedure for applying for a loan up to the loan approval is the same as for the former Swiss loan.

The limited loan amounts were also taken over from there. Neither the loan amount, the term or the monthly installment can be changed. In the case of poor creditworthiness, it is often necessary to name a guarantor, but this bank does not recognize a guarantee under German law. There are only two loan amounts: 3,500 USD and 5,000 USD. Which loan amount is now approved depends on the customer’s creditworthiness. What does the Liechtensteiner Bank understand by creditworthiness?

The customer must have a sufficiently high income that is above the garnishment exemption limit. The higher the income, the more likely that the bank will approve the 5,000 USD loan. However, many customers want the 3,500 USD loan, because the income must have a attachable share of around 100 USD. This means that even a low-earner has chances of getting a loan.

The term of both loans is also standardized, it is 40 months. This means that the loan must be paid off in constant installments for 40 months. The interest rate for both loans is around 11-12%. Payment of the monthly installments only begins two months after the loan approval. The installments for the smaller loan are USD 105.00, the USD 5,000 loan has installments of USD 150.00.

A Credit Bureau-free loan from Liechtenstein is not relevant to Credit Bureau, ie the bank will not inspect Credit Bureau, and the approved loan will not be entered. However, the bank does look at the official list of debtors, which must not contain any serious negative features such as loan cancellations, bankruptcies, foreclosures or attachments. At this bank, too, this is an exclusion criterion for the Credit Bureau-free loan from Liechtenstein.

The loan seeker must also provide evidence of permanent employment, which must not be limited, not even a trial period. The employment should last at least one year. Permanent employment is therefore also one of the approval criteria of the bank.

Unemployed, self-employed, freelancers or recipients of social assistance will not receive this loan. The unemployed and the welfare recipient receive state benefits that cannot be attached. The self-employed and freelancers do not have a stable income, although this professional group often earns very well. Proof of income is often too costly for banks, so that the self-employed often only get a loan with a second borrower.

The reputable credit broker

The reputable credit broker

Experience shows that a Credit Bureau-free loan from Liechtenstein that is processed by a reputable credit broker has a greater chance of being approved than if the customer himself applies for a loan at the bank. Credit brokers already check on the data entered by the customer whether the customer is predestined for a loan. So if the customer makes a loan application without a preliminary check, there is often a loan rejection.

The customer should know that the loan request to the credit intermediary must be completely free of charge. If he demands preliminary costs or the signing of insurance contracts, such as a home savings contract, this broker does not work seriously. Even if the customer is totally in debt and the broker offers bankruptcy advice, this is by no means permissible. These customers should not apply for a loan, but should report themselves to a debt counseling center.

There, a debt repayment plan is drawn up together with the creditors, with which the customer can then foresee when he will be debt-free. Unpleasant occurrences such as garnishment of wages or affidavits do not occur in the first place. If there is no way to get the debt under control, the customer should consider whether he should not apply for personal bankruptcy. After six years of well-being, he would be practically debt free.

Applying for a Credit Bureau-free loan from Liechtenstein directly to the bank can result in costs. Think of postage and notary fees. The customer must pay in advance without knowing whether the loan will be approved.

 

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