Updated on May 29, 2020
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
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.
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 ?
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.