A loan does not come about without a previous private credit review. Although this practice does not apply abroad, there is no bank in Germany that does not check creditworthiness. If you have negative entries, you will only receive a negative response when making a credit request.
The negative entries in the private credit lead to the fact that the customer neither gets a loan, nor can conclude a mobile phone contract or an installment purchase. The affiliated banks and companies report unpaid bills or unspent loans to the private credit.
If the open invoice is settled, a completion note is made, but the process itself is still visible for another three years. Only the delivery of an affidavit must be immediately deleted after the settlement of the outstanding claim. Although a completed private credit entry means a positive thing, those who are struggling to award a loan with a completed private credit entry.
The mistrust remains
One may argue over whether the period of three years until the final deletion of the private credit entry is justified. For some borrowers, this entry still means credit deterioration and most banks will not grant a loan with a completed private credit entry under these conditions.
However, not all financial institutions think so. Especially the online banks or the marketplaces where private individuals lend money do not look that strict. The borrower must accept higher interest rates in such a case. This calculation of credit-based interest is quite common and is also accepted by the customers. They prefer to pay higher interest rates than having to forego the credit altogether.
Credit from Switzerland
If you prefer to avoid this, you can apply for a loan from a financial service provider in Switzerland. The private credit plays no role in the credit decision. The borrower only has to prove a permanent job, live in Germany and be at least 18 years old. The loan amount is limited. Depending on income, there are 3,500 euros (with a net salary of 1,100 euros) or 5,000 euros (with a net income of 1,600 euros). Abroad there is always the possibility to apply for a loan with completed private credit entry under these conditions.