Credit without Credit Checker information – how it works

It has always been a good thing that there are opportunities to borrow money in the event of a financial bottleneck, because of course there are always situations in life in which your own available money is not sufficient – regardless of whether your own reserves have already been used up or are not sufficient from the start, for example, because there is an urgent repair that was not planned.

What to do if you need money

What to do if you need money

We all know the possibilities of what you can do when you need money: applying for a loan.

Banks give this money – as required as a short-term overdraft or as a regularly requested loan.
The option of submitting a loan application is initially available to all customers. The approval of the requested money follows clear rules.

If you want to borrow money from a bank in Germany or Austria, for example, you are definitely going through a loan approval process. This means that the loan seeker is automatically checked for creditworthiness.

This credit check or credit check is also known as the so-called Credit Checker query.

But what is Credit Checker information and who is behind the abbreviation Credit Checker? Most of you have probably already heard the term and many fear such a check by the Credit Checker if they urgently need money.

It can be certain that customers will not get the desired credit or at least not on the hoped-for good conditions, but the Credit Checker is primarily a sensible facility to protect people from over-indebtedness and lenders from losses.

This little guide is intended to provide information about
– when a loan makes sense,
– what is hidden behind the “institution” Credit Checker,
– how a Credit Checker review works,
– which myths and errors are related to Credit Checker,
– whether data collected at Credit Checker can be deleted,
– how to find out what Credit Checker knows about you,
– whether there is also a loan without Credit Checker information,
– What to consider for loans without Credit Checker information and much more.

lend money

lend money

Borrowing money when your own money is not enough is actually the idea of ​​a loan.

So it starts with the question of whether it makes sense to opt for a loan in the event of a shortage.

Unfortunately, there is no general answer to this question. In principle, of course, it is always advisable not to be too careless about this topic from the outset.

It doesn’t matter why loan seekers choose borrowed money. In the end, every applicant must be aware that this money must be repaid on schedule after it has been approved.

Those who take this to heart can borrow money for whatever it is.
Sometimes it makes sense to pay off “legacy issues”. You can also apply for a loan for this, but it does not create “new debts” but bundles and replaces “old debts”.

Such a form of loan is called a “ debt rescheduling loan”. In most cases, such a loan is also easier to obtain than a new loan, as the lending institution recognizes that the borrower has an eye on his finances and thus wants to settle his existing obligations in a clear and interest-friendly manner .

In other cases, repairs become necessary if they do not fit into the budget. Then usually only a loan helps.

As already mentioned, in Germany, for example, a loan is only granted through a regular domestic bank if the Credit Checker query has been answered positively. So if you have a negative Credit Checker score , you will either only get a loan on very unfavorable terms or none at all. But what is Credit Checker actually?

Credit Checker – what is it ?

bank

In Germany or Austria it is not possible to take out a loan, loan or financing if the Credit Checker information is negative or to generally apply for a loan from a domestic bank without Credit Checker information.

The desired loans do not necessarily have to be very large sums. In Germany, every credit request is forwarded to Credit Checker. This then provides information about the financial situation of the loan seeker.

Banks are required to do this before credit approval if they do not want to face the negative consequences in the event of a loss, because each bank must ensure that the approved credit in addition to the interest in the agreed time – the installment term – is or can be repaid.

What does the Credit Checker say?

Credit Checker provides potential lenders with information about the probability of whether the respective customer, i.e. the borrower, will be able to repay the loan applied for.

The full name behind the abbreviation “Credit Checker” is ” Protection Association for General Credit Security “. It stores and processes the data of private individuals living in Germany who are economically active, as well as of companies and companies.

This stored data is used for the credit check to inform the banks whether it is advisable to grant a loan. The banks can then decide for themselves whether to grant the desired loan or only part of it and on what terms.

Apply for personal credit with thecalculator

The loan calculator is used to calculate the desired personal loan. The calculated values ​​enable monthly installments and interest to be shown. It is important to get an overview of the current costs before making a final decision for a personal loan. According to law, lending must not lead to overindebtedness. For this reason, the loan calculator shows a possible solution, which is then personalized in each individual case. 

In the online loan calculator online, you can enter the desired loan amount and the desired number of monthly installments for the first time. On our website, the loan calculator shows two different interest rates: 4.5% and 9.9%. 10% is the maximum interest rate that is set by law in the country.

Step by step through our online loan request

Step by step through our online loan request

The calculated numbers are informative and calculated according to a standard formula. After processing by the financial institution, a definitive interest is only set after the individual processing. The informative prices on our loan calculator are intended to help show the costs before you apply for a loan.

Step by step through our online loan request

Step by step through our online loan request

1. Determining the loan amount and monthly installments

2. Enter personal data

3. Professional information

4. Involve the partner as an option for personal loans

5. Apply for credit online

Loan interest in the country must not exceed 10% of the loan amount

Loan interest in the country must not exceed 10% of the loan amount

 

The interest rates for a personal loan in the country today vary between 4.5% and 9.9%. As already mentioned, the maximum interest rate for a loan in the country must not exceed 10%. After the receipt of the credit request and its processing by our experienced employees, it is up to the bank or the financial institution to set the definitive interest rate. As an independent credit broker, we have the opportunity to look for the best option for our customers, according to individual concerns. 

Setting the interest rate

The bank sets the definitive interest rate based on its personal budget. The interest on a personal loan in the country is calculated using a standard formula that takes income and income into account, as well as the resulting remaining budget in order to be able to repay a loan.

Creditworthiness also plays an important role in the decision, which is made up of creditworthiness and creditworthiness. This also includes the payment behavior of the loan applicant, ie how he meets his financial obligations. The decisive factor for the financial institution is whether the customer is trustworthy and can meet its credit obligations.

As a credit broker, we can look for the best deal and partner to agree the best interest rate with the best terms.

Loan request processed in 24 hours and paid out in 14 working days

Loan request processed in 24 hours and paid out in 14 working days

 

After calculating the financing in the loan calculator and completely filling out all personal data, we are almost at the end of the application. Before sending, documents and documents can best be uploaded in .pdf format. If we already receive the necessary documents with the credit request, we can process and forward them faster. This in turn can speed up the decision-making process considerably. 

So let’s summarize the process of the credit request in simple steps:

  • Enter the desired amount and number of monthly installments in the loan calculator
  • Fill in all personal data truthfully
  • Upload documents: Last 3 wage slips and a copy of a valid ID (ID or passport or foreigner ID)
  • Send and receive contact confirmation in 24 hours
  • If the decision is positive, the money will be in your account within 14 working days (legal waiting period)

The six elements for successful credit risk management

Because of the low interest rate policy, banks have been under increasing pressure for some time. The central bank has been charging banks interest rates for more than three years when they park money with them. After all, the idea is that the institutes should not hoard their customers’ deposits, but rather issue them as loans so that the economy gets going. The consequence of this is that banks are increasingly granting loans. In order to keep the default risk as low as possible, banks should follow these six steps in credit risk management.

1. Know Your Customer

credit loans

Know Your Customer (KYC) is an integral part of the credit risk management process and forms the basis for all subsequent steps in lending. On the one hand, this is about the mandatory authentication of new and existing customers to prevent money laundering. On the other hand, it is also important to collect relevant, accurate and timely information that helps to build a solid customer relationship so that the bank can position itself as a financial advisor and provider of financial products and services.

 

2. Analysis of non-financial risks

credit risks

In order to assess the future of a company, qualitative criteria also play an important role in credit risk management in addition to the credit assessment. The qualitative rating criteria (“soft factors”) are non-quantifiable criteria that can have a lasting impact on the development of the company. Here, the financial institution particularly analyzes the success criteria that are important for future corporate development.

Qualitative factors such as management, the competitive situation, or market position (local competitors, market share, competitiveness of services, etc.), industry assessment, etc. are assessed. Thanks to the soft factors, the bank can usually predict future corporate crises with a longer lead time than using the quantitative criteria.

 

3. Interpretation of the numbers

credit loans

There are various advantages, but also risks, that are associated with the establishment of a banking relationship and the granting of loans. Lenders should therefore know how and what the funds are used for and how they are expected to be repaid. In addition, all risks associated with the customer should be identified, categorized and prioritized.

In order to understand the numbers, the focus should be on the financial performance of the company – this examines the company’s economic situation. To this end, documents on the company’s assets and earnings are analyzed. These are usually current annual financial statements, business evaluations or, if applicable, income-surplus calculations.

 

4. Give the deal a price tag

price tag

Setting an appropriate price is one of the key elements in credit risk management. Based on the qualitative and quantitative evaluations, an assessment is made of the risk associated with lending to a company. Rating procedures or other valuation models are used for risk assessment, on the basis of which the corresponding interest rate is calculated.

A variety of complex factors determine the final interest rate. The most important factors include (1) the economic situation of the company (credit rating) and (2) the collateral provided (the collateral is recoverable). The following principle applies: the better the company’s economic situation and the most valuable the collateral provided, the lower the interest rate. The respective interest rate ensures that the financial institution is adequately compensated for the risk of the business.

 

5. Presentation and conclusion of the deal

The sound and professional communication of the rating and scoring results and the costs are an important prerequisite for accepting and concluding the deal. Credit decisions should not be based solely on the credit assessment. This would not be complete without an equal emphasis on the qualitative aspects such as the ability of management, the competitive environment, etc. After the analysis, structuring and pricing, there is nothing standing in the way of closing the deal.

 

6. Monitoring the business relationship

business loan

In today’s competitive environment, banks cannot afford to wait for their loans to be repaid and expect customers to actively ask about other products and services. In order to maintain the market position, the customer’s risk profile must continue to be monitored and, at the same time, opportunities for developing and expanding the relationship must be sought.

A profitable relationship can quickly become an unprofitable one. Loan payments can be timely, but deterioration in collateral, untapped potential, or unpaid taxes can pose a serious risk to a bank. Periodic reviews, evaluations and audits can ensure that the customer creates long-term profitability for the bank.

What is the credit record score & how is it calculated?

The credit record score is a value that provides information about the creditworthiness of a contractual partner. The closer it comes to 100, the higher the payment behavior. But how does the credit record score come about and can it be improved if it is too low?

 

This is how the credit score is calculated

credit score is calculated

Everyone knows roughly what the credit record is and that today you can rarely rent financial transactions or even an apartment without a credit record query. The credit agency may of course not provide detailed information about who paid when, where and how high amounts of credit or not. But there is the so-called credit record score, which, the lower it is, the worse the creditworthiness.

How exactly the value is calculated is not known, because according to the Federal Court of Justice, a credit agency does not have to provide more precise information. The formula for calculating the score is therefore a secret, the data that is collected to determine the creditworthiness value is somewhat more transparent. This includes:

  • personal data such as address, date of birth and name
  • Account and credit card details or a possible overdraft facility
  • mobile phone contracts
  • leases
  • Customer accounts at mail order companies
  • guarantees
  • ongoing bankruptcy proceedings
  • outstanding credit installments
  • unpaid and dunning bills
  • Negative entries such as warrants or an affidavit

Religion or nationality may be used in the calculation as well as the employer, marital status, the amount of income or other assets and capital. However, this data may not be saved.

The credit record score is determined from all the above data together with the secret calculation formula.

 

How do you get credit record information?

credit score

To find out the score, you first have to submit an application for self-disclosure to the credit agency. This right to information is enshrined in law; credit record offers the required form for downloading directly from its own homepage.

According to the new data protection, the free information can be requested once a year. However, it takes up to 4 weeks for the information to be in the mailbox.

 

The credit record score table

credit score

If you receive your credit record score information in the post, you can see a value that assesses the creditworthiness. The base score describes the value that normally only the applicant can see.

There is another credit record score on the information, namely the industry score, which is tailored to the needs of the industry of the respective contract partner.

The base score and the industry score are each listed in a separate table, the level of the values ​​is known as the so-called credit record score Rating.

The maximum value is 100 and describes an almost non-existent risk ratio. However, only very few achieve this value, since a cell phone contract can reduce your credit record score. It doesn’t matter whether you pay your monthly installments on time.

The further the value decreases, the higher the probability that bills will not be paid or that credit agreements will not be met. Of course, every contract partner dreams of the highest possible credit record score, the rating table for the basic score looks as follows:

  • less than 50 = critical risk
  • between 50 to 80 = very high risk
  • between 80 and 90 = increased or high risk
  • between 90 and 95 = increased to satisfactory risk
  • between 95 and 97.5 = low to manageable risk
  • from 97.5 upwards = very low risk

If the credit record score is very low, it is high time to improve it.

 

How can the value be improved?

The higher the value on the credit record score table, the more likely it is to purchase on account or to approve a loan. Every industry has different criteria when it comes to signing a contract, for some 95 is a moderate value, others reject customers with this credit record score.

The credit record score is updated every three months. Negative entries such as an affidavit, an arrest warrant due to the refusal to provide oaths, dunning procedures, broken credit rates or even an overdrawn account – even if it is only the overdraft facility – reduce the credit record score.

Such things have to be avoided and those who continuously develop good payment behavior can improve their credit rating sustainably. This includes:

  • Check the entries in the credit record regularly for correctness and have them corrected if necessary
  • Pay credit installments and bills on time
  • to have no unused checking accounts or credit cards
  • approach the creditors in the event of late payment and thus avoid entries in the credit record Register
  • don’t take out too many small loans
  • don’t move too often
  • only make really important credit requests

In addition, it is always good to check your credit record score regularly and to react to any discrepancies. It sometimes happens that the people with the same name are swapped, so the credit record score is wrong. For this you should call the credit record credit agency immediately to solve the problem as soon as possible.

Vacation Loan – financing holiday

A loan for your vacation, this can come true quickly and easily. With today’s low interest rates, you can take out a loan quickly and easily and travel this week! No matter if you are drawn to the mountains or to the sea, you can easily compare loans online and get a good offer.

Go online quickly and easily thanks to a loan online

Go online quickly and easily thanks to a loan online

You can make your dream vacation a reality quickly and easily! Instead of overdrawing your account or saving for a long time, you can benefit from low interest rates and competition among the many credit institutions online. With many providers you only need a few minutes to fill out the application form and with some purely digital providers you don’t even have to leave your apartment. There is no annoying paperwork! Everything is modern online and this makes the process a lot faster. If you want to travel soon, we recommend one of the new purely digital providers. With the fastest you get your money the same day!

Do you lack the money for a vacation? Simply take out a loan online!

Do you lack the money for a vacation?  Simply take out a loan online!

No matter whether Asia, the USA or classic Spain, you can make your vacation dreams come true immediately. The destination of your trip doesn’t matter. Summer, winter, skiing, swimming or adventure holidays, the choice is yours, the credit is not tied to any purpose. Enjoy life and give yourself time to take a deep breath. Many people take up money for their vacation. There are so many costs during the year that there is often not much left to save.

Free credit for your trip

Free credit for your trip

This sounds almost too good to be true, but in fact some providers offer your loans online with 0% interest and a short term. If you accept such an offer, you only pay back the cost of your vacation and nothing more. You can book immediately and may benefit from good early bird discounts. A loan is even worth it! Calculate how much your trip will cost and also keep in mind that you may need some extra money after your return, as you spent money during the holidays. You will find providers with 0% interest offers in our comparison list. Simply enter the desired amount and the term and you will get your overview. You will get an overview quickly and easily.

Quick pocket money for your trip

Quick pocket money for your trip

When calculating your loan, don’t forget that you also need money on the spot. Therefore, calculate a little more. Depending on the length of your vacation, food, rental car and activities can be booked properly. And there should also be some pocket money for shopping, souvenirs and souvenirs.

In case it has been forgotten anyway: You can receive so-called small or mini loans within hours and thus your budget for the holiday can be increased very well even at short notice. The offers run purely online and you have the money in your account within a very short time.

Credit for your summer vacation

Credit for your summer vacation

It is often very expensive to travel in summer. Especially if the trip should go abroad and in the summer sun. Regardless of whether you are traveling alone or as a family, you will have to pay a decent amount.

You can easily borrow money online here for the summer holidays. The vast majority of applicants actually get a yes. It is a good idea to submit your loan application to multiple providers because the requirements may vary from provider to provider. That means you get money for your summer vacation faster and cheaper by sending a handful of applications instead of just one. It costs nothing and there are no obligations for you as a private individual if you apply to several banks. It is a little more effort, but it has another advantage: You can compare the specific offers exactly and see which loan provider has the cheapest offer for you. As you can see, it is easy to make several applications, it is quick and worthwhile!

Enjoy the sun and summer in the distance with a cheap vacation loan in your luggage. Simply apply for it today from home and when the trip starts you have money in your pocket to enjoy the vacation. You can simply experience everything the place has to offer. You only have summer vacations once a year and it is important that you enjoy your vacation to the fullest. You can take out the loan at home at any time.

Find Cheap loan through comparison

You live in the country and are looking for a cheap personal loan. The Internet today offers an oversupply of everything, including financial products. Everything is happening quickly and we have the feeling that we are in the fast lane, i.e. we have to make quick decisions. It is important whether you want to take out a loan and where you do it, which provider you choose. Sometimes things have to happen quickly, different life situations or financial constraints can be another problem. But pause briefly and make a personal loan comparison is definitely worth it.

Provider and credit comparison

Provider and credit comparison

Loan providers, credit intermediaries, furniture loans, bank loans, auto loans, self-employed loans, small loans and so on and so on.

Loans are now being advertised in the country in all possible shapes and colors .

Almost everything and nothing counts in the title age of the Internet, loans seem to be like sand on the sea. And yet this is not about buying any product. We all have short, medium or long-term plans that we want to implement. Most of the time it fails because of the personal liquidity for the implementation. With a personal loan, you are tied to a financial institution for several years to repay the loan received. You should think twice about this and rely on long-term advice. The credit comparison should also be taken seriously, despite the desire and zeal to realize your own plans.

Credit intermediaries are usually not direct providers of loans. Or rather, the brokers are not funders. As a credit broker, we work on the best solutions for our customers in collaboration with the largest banks in the country. After 33 years of successfully brokering personal loans in the country, we can now make a loan comparison that focuses on the needs of our customers.

Satisfaction after personal loan comparison

Satisfaction after personal loan comparison

Our goal is customer satisfaction. We always aim to provide our customers with the best possible advice, on a long-term basis. And of course we want to provide you with the cheapest loan in the country. For this reason, we advise you to make a loan comparison and take your time before making the final decision. Contact our credit experts and report your concerns ahead of time. An honest exchange is the basis for an optimal solution.

Loan renegotiations: with historically low rates, now is the time!

In April, mortgage rates hit a new all-time low, offering borrowers new opportunities to lower their mortgage rates. Almost all loans taken out before mid-2016 can potentially be renegotiated with significant savings! Good Finance, a network of 200 real estate brokerage agencies, calculated the possible gains for a loan of $ 200,000 over 20 years according to the seniority and rate of the loan and drew up the list of advice to optimize its renegotiation. 

Rates dropped to their lowest historical level!

Rates dropped to their lowest historical level!

In April as in March, mortgage rates fell slightly further, reaching on average 1.30% over 15 years, 1.50% over 20 years and 1.70% over 25 years “But we manage to negotiate for the best profiles 0.6% over 15 years, 0.85% over 20 years and 1.1% over 25 years. And even recently, we got 0.30% over 7 years for a loan renegotiation! » Specifies Jérôme Robin, managing director and founder of Good Finance.

Resumption of renegotiation requests since February

Resumption of renegotiation requests since February

Since the beginning of February, Good Finance has noticed a resumption of requests for credit renegotiations, the number of which had decreased in the second half of 2018. In the first quarter, loan renegotiation files were up 25% compared to the 1st quarter of 2018. The same is true for Banque de France’s monthly statistics: in February, credit renegotiations represented 18.3% of new loans, compared to 14.6% in December 2018, but 60% in February 2017!

We are therefore far from the massive waves of renegotiation in 2010, 2013 or 2017, but there are still requests.  “If most of the credits that could be renegotiated have already been renegotiated in recent years, sometimes even several times, the The announcement of record rates offers new opportunities for borrowers who have taken out a loan – even recently – to renegotiate it.

This also motivates those who have been considering doing it for several months without having the courage to embark on this operation which can discourage those who flee from complex procedures! Analyzes Allex Bouler, spokesperson for Good Finance.

Wrongly, because this operation can turn out to be particularly interesting financially by generating monthly savings for those concerned. It is also the means for those who would like to make a second purchase (rental or second home) to free up an additional monthly repayment capacity and therefore to buy without increasing their monthly payments too much!

“We consider that there must be a point of difference between the rate of the credit to be renegotiated and the current rates for the economy generated to make the operation attractive given the costs involved which can reach up to 3% of the remaining capital due. But a difference of 0.70 point may be enough for recent loans, of more than $ 300,000 or with durations greater than 20 years, hence the need to study the relevance of the operation in order not to pass next to an opportunity, ” explains Allex Bouler.

Who are the serial renegociator?

Who are the serial renegociator?

Indeed, for credits of less than 5 years, the operation is even more interesting because it is at the start of the loan that the most interest is reimbursed (up to 50% of the monthly payment the first two years for credits over 20 years and even up to 60% for credits over 25 years). So this is when a buyout will have the most impact on the total cost of credit.

“We even have the ‘serial renégociator’ who renegotiate their loans every 2 years, and are in the 2 nd or 3 rd operation! but beware, the banks manage to spot them and they are less inclined to capture this clientele deemed too volatile! In addition, by renegotiating every 2 years, the costs generated by the operation do not have time to be amortized and the credit is reimbursed less quickly, because we start each time at the start of the loan, when we repay the most interest, even if they are lower!

Substantial savings: 129 USD per month, or 22,822 USD in total!

Substantial savings: 129 euros per month, or 22,822 euros in total!

An example ? For a loan of $ 200,000 taken out over 20 years in January 2014 at 3.35% excluding insurance and renegotiated today at 1.10% over 15 years, this saves $ 129 in monthly payments, making a total of $ 22,822 compared to at the cost of the initial credit, all fees included (prepayment penalties, warranty fees and brokerage fees).

How to optimize your loan renegotiation?

How to optimize your loan renegotiation?

First of all, put banks in competition because even very low, rates vary greatly from one bank to another depending on the profiles.

Then, prepare your file well because the bank will ask for the last 3 account statements, last 3 pay slips and especially the reimbursement statement in order to know how much you will still owe to your bank, which can sometimes take several months. Anticipate!

Be aware of the costs with prepayment penalties that will have to be paid to the old bank (3% of the outstanding capital capped at 6 months of interest), application fees and guarantee costs for the new loan (between 1.2 and 2% of the amount borrowed). These costs can, under certain conditions, be reintegrated into the new loan.

Make the choice if possible to decrease the remaining term of your loan by keeping the same monthly payment because the savings generated will be greater thanks to a lower rate over a shorter duration and faster amortization of the credit.

Take this opportunity to find a better adapted and / or more competitive loan insurance and thus maximize the savings generated by the renegotiation operation.

Plan to keep your property – and therefore your credit – another 2 years minimum because during a repurchase, you start at the start of the loan with, therefore, slower amortization in the first years.