How to get a personal loan without a credit check

We explain what is meant by credit check, as well as the advantages and disadvantages of such a loan here in this article. For more in-depth resources, we recommend you look into an independent loan comparison.

What is the credit rating and a credit check?

Creditworthiness is the ability and willingness of a borrower to repay his payment obligation on time and in full. Credit rating measures the creditworthiness of the borrower and is often associated with banks and when applying for a loan.

With the credit check, the banks can determine whether the borrower can reliably repay the loan including the interest and also has the ability to do so.

If a credit check is carried out, the respective institution checks the schufa entries and notes whether it is a positive or a negative one. If it is a negative one, you get more difficult only the credit.

Important requirements for a loan application without a credit check

  • Fixed income
  • Residence in germany
  • German bank account
  • Collateral, such as a property/vehicle

As well as the following required documents:

  • Latest payroll
  • Monthly rent
  • Electricity
  • Insurance

How to get a personal loan without a credit check

The credit check plays a relevant role in most reputable banks and in the rarest cases can not be avoided, as it is directly linked to schufa.

But one way out is to borrow from a foreign bank. The schufa and thus also the credit assessment are only in germany so available. Therefore, under certain conditions, you can apply for credit from foreign banks without having to apply for your credit history. An interesting option in this case could be to try to take out a loan from switzerland.

Advantages of loans without a credit check

It makes sense to apply for a loan without a credit check if the borrower can show sufficient security. A trusted guarantor is also possible. This form of credit is generally more suitable for younger people, as they have high interest rates and are designed to be inflexible.

Those who have had trouble with your schufa score in the past 3-5 years should consider applying for a loan without a credit check. The difficulties can be

His. Therefore, you should also make sure to avoid it as much as possible. A bad credit score can also lead to car insurance problems.

Disadvantages of loans with no credit check

The high costs, such as interest, associated with these loans are enough to put you in debt. Especially if you have already been rejected by a reputable bank because of financial problems, you should think it over carefully.

In addition, you should beware of shady lenders on the internet who frivolously promise you loans without proof of a credit check. They then usually demand a down payment or a processing fee – both of which are signs of an obviously untrustworthy provider.

There are also limited amounts you can borrow and a fixed term. So, in some cases, you may not be able to apply for your required amount and, in addition to the high interest rates, you will have to make sure to pay everything back in time.

Conclusion

You should think through borrowing well, and do your own calculations and research for the best possible provider. Loans with no credit check are a good way to apply for loans despite a bad credit score, but the fact that you still have a bad credit record is something to think about. If you're already in a desirable financial situation, don't make it worse by taking out a loan with high interest rates. Be aware of your risks but also your benefits that you take with the loan.