Financing without SCHUFA is by no means impossible. The affected customers with the negative SCHUFA note are no longer uncommon today. The SCHUFA itself shows in its annual statistics almost ten percent of all recorded Germans with a negative entry. These include a few hard cases with notes on the bankruptcy or the filing of the affidavit, which actually blocks the funding. However, individuals with a slight negative event due to an unpaid mail-order or mobile phone bill may hope that they will succeed in financing without SCHUFA.
Financing without SCHUFA: When does demand increase?
Almost every person has ever had to complain about a financial shortage. In many cases, relatives can help out with a small loan. But sometimes this money is not enough, moreover, this relatives loan is not a satisfactory solution for many people. With a negative SCHUFA entry, however, the usual financing channels via a German financial institution are closed. Neither branch nor direct banks provide loans without a SCHUFA query, for which they in turn expect positive information. Fortunately, there are now options for financing without SCHUFA. These take up the households, if they want to buy a refrigerator or a washing machine, unexpected bills are payable, a rescheduling pending or even the family simply wants to go back to vacation. The financing without SCHUFA is granted as consumer loans for free use. In addition, there are also special loans for a SCHUFA-free real estate financing. The Consumer Loan, in turn, selects people who want to fulfill their desires, which often include a new TV, as well as a new car or new furniture. By financing without SCHUFA, there is the appropriate loan at a reasonable interest and at an adjusted rate.
How does financing without SCHUFA work?
The financing without SCHUFA comes from foreign financial institutions and is mediated through financial service providers. These often have contacts with very many financial institutions, for example in Switzerland, but also in other European countries. Such a large network increases the customer’s chances of financing without SCHUFA, while at the same time the financial intermediary can select the best conditions. Important to know: There are not only serious offers for financing without SCHUFA.
Financing without SCHUFA: Provider comparison
When comparing the credit intermediaries, it is important for the interested parties to separate the wheat from the chaff. Above all, you should pay attention to that
- no advance costs are required
- the interest conditions are clearly visible,
- no ancillary transactions are offered (participations, insurance),
- no sales representatives come into the house as well
- no COD charges will be charged for sent documents.
Only under this condition, the provider can be a company that honestly and without fraudulent intentions, the financing without SCHUFA imparted.
Who can get the funding without SCHUFA?
Employees, pensioners and the self-employed, civil servants and sometimes also housewives, students or even unemployed people can get funding without SCHUFA. In difficult cases, however, a guarantee is required. Excluded from this form of financing are persons in bankruptcy or after filing the sworn statement. Then there are borderline cases that have to be considered individually. It is also very difficult for people with a wage garnishment or rental debt to find financing without SCHUFA, but that is not impossible.
Financing without SCHUFA with the help of a guarantee
In any case, if the applicant is unemployed for SCHUFA funding or, for example, affected by a seizure of wages, the financial intermediary will demand a guarantee. Most financial intermediaries rightly call these guarantors “co-applicants”. By this it is meant that the guarantor is liable on his own and has to step in immediately if the installment fails. He is treated like a second borrower. Accordingly, the interested parties should find in this situation a guarantor who is willing to do such a favor and may also have some funding without SCHUFA – because he benefits as a family member of the financed acquisition.
The cost of financing without SCHUFA
For each loan, the bank, while financing without SCHUFA additionally the financial intermediary must earn something. The latter receives his commission after the payment of the loan from the financing bank, which in turn easily increases the interest rate for this reason alone. In addition, the risk of financing without SCHUFA must be covered by interest premiums. These are the higher, the lower the credit rating of the customer. This is the case for any credit-based financing, even if it is taken up normally via a German financial institution with a SCHUFA query. For financing without SCHUFA, there are certainly applicants with an excellent credit rating who can expect interest from 2.75%. After all, such loans also accept people without a negative entry in their SCHUFA file, because they want to protect their score for future financing. In other cases, interest rates rise, in extreme cases they can reach around 15%. It should not be much more expensive, any interest rate over 20% is considered usury.
Financing without SCHUFA: assessment of one’s own credit rating
Readers now wonder how high or low their own credit rating is in the eyes of a financial intermediary and what interest rate they might have to pay. The following data are estimates from the winter 2015/2016, also note supplier differences:
- Official with positive SCHUFA information, who would like to save only his score by financing without SCHUFA: 2,75 – 4,9%
- Full-time official or permanent employee with good income and “soft” negative feature at SCHUFA (forgotten mobile phone bill): 4.9 – 6.9%
- Employee with fixed-term contract, self-employed person or pensioner with soft negative characteristic: 7.0 – 8.9%
- Employed or well-paid self-employed person with a slightly harder negative characteristic (rental debt, garnishment): 9.0 – 11.9%
- Unemployed, possibly with rental debt: 12.0 – 15.9%, plus guarantee required
The amount of the interest does not say everything about the actual interest costs. These increase with the term of the contract. There are providers that allow the repayment of SCHUFA financing for more than 120 months, but applicants should calculate in advance the resulting interest cost.
How can savings be made on financing without SCHUFA?
Applicants can not change the offered interest rate, they can at most look for a cheaper provider. But there are basically two ways to reduce the costs of financing without SCHUFA:
- Special repayment options should be used. Often the situation seems very precarious at the moment of borrowing, but perhaps the borrower can repay a larger part of the financing without SCHUFA after a few months. This reduces the interest costs enormously.
- A financing without SCHUFA, with which a valuable good is acquired, can lead to the cash payment discount. The classic here is the purchase of a used car. Discounts of up to 10% are possible, possibly compensating for all interest costs of financing without SCHUFA.
The conclusion is that nobody has to shy away from the costs of financing without SCHUFA. These can be controlled in a variety of ways.