In principle, German loan offers are made without an agency fee. However, if the loan seeker turns on a credit broker, agency fees or commission for the credit broker are incurred. Some customers still believe that banks can charge processing fees. But the law put a stop to it. If the loan seeker does not have a proper Credit Bureau and is dependent on the Credit Bureau-free loans from abroad, he should know that there will be no loan without an agency fee in such a case.
The loan without an agency fee – the basics
Credit Bureau-free credit or Swiss credit is a financial product that has survived all the storms and cuts in the financial world. He has been demonized, praised and repeatedly requested. For many loan seekers, Swiss credit is the last chance to get a loan without an agency fee. It is not just low-credit customers who are looking for this loan. Even the customer with the best credit rating decides for a loan without an agency fee from abroad. This happens when he is planning a major project where his credit rating must not be reduced. Since these loans are not entered in the Credit Bureau, his house bank is also not informed of a loan.
As a rule, however, it is customers who have a poor credit rating and in this country no longer receive a loan without an agency fee. This creates negative entries very quickly. Some invoices were paid too late or not at all, reminders came that the customer had ignored and the negative entry is already there. Even if the loan seeker continuously uses his overdraft facility far beyond the granted credit line, Credit Bureau receives a message, which reduces his creditworthiness, i.e. his creditworthiness.
Before applying for a loan without an agency fee, applicants should make a self-assessment with Credit Bureau, which is even free of charge once a year. With this insight, the customer can see whether the entries are entered correctly or whether they could have been deleted long ago. The advantage would be that his credit rating increases again and a regular loan would be possible.
Unemployed, Hartz IV recipients, the self-employed and freelancers are excluded from this form of credit. The loan without an agency fee is only granted to employees who are self-employed with a corresponding income. The employment contract may not be limited or show a trial period.
Usually these loans are the business of credit intermediaries, which of course do not work for nothing. If the loan seeker hires a credit broker, he must expect agency fees. If he applies for the loan directly from the bank, the agency fee is also waived. He then has the loan without an agency fee.
With a bad Credit Bureau, the loan seeker can forget a traditional loan. The possibility of naming a second borrower or a guarantor increases the credit opportunities. The partner could be the second borrower to sign the loan agreement, but it must have good solvency. Finding a solvent guarantor is more difficult. The guarantor must have excellent creditworthiness. He must be fully informed about the guarantee and also know that the guarantee can reduce his own creditworthiness.
Submit the loan application directly to the bank
If you are looking for a small loan in the order of 3,500 USD or 5,000 USD, you can look at the loans from abroad. This loan can often be found under the name Swiss loan. Most of them came from Switzerland until 2009, but have been relocated to Liechtenstein for banking reasons. The local bank, Litebank, has meanwhile taken the market lead for a loan without an agency fee.
The loan seeker can apply for the loan from the bank. For this he has to go to the bank’s side and follow the instructions that can be read there. There, the customer can also read the terms and conditions that must be met in order to receive this loan. So he must be of legal age and have his place of residence as well as the current account in Germany. He must not be dismissed or be in a trial period, his employment contract must be unlimited.
The income that comes from the self-employed activity must be so high that it shows a attachable share. In the case of a single person, that would be net 1,160 USD. He would then have an attachable share of around 80.00 USD, which is also mandatory. The customer should know that he can read all information on the bank’s website without making a loan application. He can only decide if he has all the information relevant to him and knows whether this special loan offer is suitable for him.
The loan application is quickly filled out and if the customer has the credit documents on hand and sends them to the bank immediately by post, he will receive the loan amount within a few days.
The loan from private
A loan seeker also receives a loan without an agency fee from private investors. All he has to do is look at the relevant portals and create a profile there. In doing so, he must submit his credit request in a trustworthy and transparent manner. The more the customer discloses and also mentions his bad Credit Bureau, but can still convey his solvency to investors, the higher his chances are.
It is not good to hide a negative entry, since these donors also see the customer’s Credit Bureau. The personal loan has a slightly higher interest rate than conventional loan offers. Assuming that there are providers of Credit Bureau-free loans that charge 15% or more interest, an interest rate range of 10 or 11% should still be possible. The customer can lower the interest rate by calmly looking at the individual offers and only then making a decision.
If the loan seeker is asked to pay before the loan application, he may still have gotten to a credit broker. Because this professional group presents its pages like that of banks. In some cases, the customer does not even notice that he is working with a credit broker. Although a reputable credit broker can be useful, especially when it should be a loan in difficult cases.