Having your own car to get to work is a must for many workers. But very few workers can pay for a car in cash, be it a new car or a used one. If Credit Bureau still has negative entries, a car loan without Credit Bureau and deposit is due. However, the loan seeker can assume that it will not be an easy task. But there are still ways to finance a car even with bad Credit Bureau.
The car loan without Credit Bureau and deposit
Before banks approve loans, the creditworthiness of the customer is checked. Income is checked, Credit Bureau is queried and permanent employment is checked. If only one of the three approval criteria cannot be met, banks say no to a car loan without Credit Bureau and a down payment. Acceptable income must come from a self-employed activity, and the loan seeker must not have a temporary employment contract. Freelance work or self-employment is equally affected.
The loan seeker can only bring in his workforce if he has a mobile base, a car. However, he faces problems if no down payment can be made and if the Credit Bureau is negative.
If there are other loans to be paid or if there are titled claims, the loan seeker can write off a car loan without Credit Bureau and down payment. Nevertheless, a car loan without Credit Bureau and deposit can be made if the loan is secured with a guarantee. However, this can only be successful if the guarantor can provide sufficient solvency.
The bank will examine the guarantor comprehensively, be it his income, his Credit Bureau or his permanent position. If there is nothing wrong with the guarantor’s creditworthiness, he can provide a guarantee. Finding a surety is going to be a bit difficult. Here it is recommended to look around in the circle of relatives and acquaintances. There should be some familiarity between the borrower and the guarantor.
After all, the surety guarantees the credit debt of a relative or acquaintance with his assets. In order to rule out interpersonal disputes here, there should be a binding relationship with the debtor. If there is no guarantor, the loan seeker can switch to the Credit Bureau-free loans.
The credit broker
Since a car can certainly ensure the existence of a family or a single person, the loan seeker should not give up immediately if a bank has not approved the loan. Here are the Credit Bureau-free loans that are advertised by credit agencies. However, one should mention right at the beginning that there are also dubious credit brokers.
If the customer has found one and would like to apply for a loan, but is first asked by the intermediary to pay preliminary costs or prepayment, this is a sign of dubious business conduct. The pressure to sign insurance contracts is also dubious. If this happens to a loan seeker, he is better off with another reputable credit broker.
Basically, a credit broker can only calculate his commission after a loan approval. All fees and costs must be disclosed transparently. There are also legal rules for an agency contract that the agent must comply with. This also means that all costs must be listed in the agency contract or the loan application.
These are the loan amount, the term and the interest level. The costs of the bank and the commission of the intermediary are included. If all of this is correct, a credit broker can do a good job, especially with a limited credit rating. Although advised elsewhere by a credit broker. The loan seeker should try to get a car loan without Credit Bureau and deposit. At least the commission of the credit intermediary could be saved.
But there are customers who are not so well versed in the lending business and prefer to be helped by someone who understands their business. A credit broker also knows banks that provide loan seekers with poor credit ratings without a Credit Bureau and down payment.
The Credit Bureaufree credit
The car loan without Credit Bureau and down payment can be realized with a loan from abroad. These loans came entirely from Switzerland a few years ago, but a legal proceeding prohibited them because these agencies and banks did not have a license to do so. Since 2010, Best Bank from Liechtenstein has had a monopoly on Credit Bureau-free loans. The terms and conditions were taken over by the banks from Switzerland.
So the car loan without Credit Bureau and down payment must be applied for by a customer with a sufficiently high income. The income must show an attachable portion that is at least 100-150 USD. The Credit Bureau is not relevant, but a permanent position is required. The loan seeker must also be of legal age and resident in Germany.
That’s how many loan offers you get
However, only two loan amounts are available for the car loan without Credit Bureau and down payment. One time 3,500 USD and a maximum of 5,000 USD according to credit rating. The loan is not earmarked and can therefore also be used to buy a car.
If the Credit Bureau is not queried either, the bank takes a look at the public debtor register. If credit terminations, disclosure oaths or bankruptcies etc. are noted there, there will also be no Credit Bureau-free credit.
The customer should know that a guarantee or other property security is not valid with this type of loan. The income must come from a permanent employment contract, the employment must have existed for at least 12 months. Anyone who has a garnishment of wages is also excluded from the loan. The attachable part of the income is the so-called credit protection.
Depending on which loan amount is requested, different garnishment exemption limits are required. With a 5,000 dollar loan, the net income must exceed at least 550 USD. For a 3,500 dollar loan, an attachable share of 80 USD is sufficient. Both types of loan are repaid in 40 constant monthly installments. The rate for the 3,500 loan is USD 105.00, for the USD 5,000 loan it is USD 150.00. The interest rate is in the double-digit range, namely 11.61% effective APR for the 5,000 dollar loan.