An installment loan makes big wishes come true with small installments. The flood of offers for this financing route is overwhelming. The installment loan is not always cheap in comparison, with and without Credit Bureau. How do these differences arise and what should you pay special attention to when using a loan without Credit Bureau?
Installment loan, comparison with and without Credit Bureau
An installment loan does not have to be expensive. The price comparison on the Internet proves this statement. With a good credit rating, the prices of the providers drop. In addition to the low interest rates, public service employees can also benefit from particularly long terms. At first glance, cheap money seems to be almost on the street, so the price offers are very competitive.
However, those with poorer credit ratings will quickly find that risk premiums change the market picture. A installment loan is not always cheap in comparison, with and without Credit Bureau. In addition to interest rates, the additional costs of credit increase above all with loans without Credit Bureau. Normal financial institutions fail to provide loans without Credit Bureau as an option. There remain specialist providers from Germany, personal loans and foreign loans.
Loans without Credit Bureau – it’s worth comparing
The loan without Credit Bureau can come from various sources. In principle, anyone looking for a risk loan has to expect higher costs for their loan. The surcharges are justified by the increased credit risk. Nevertheless, an installment loan should not develop into a cost trap in comparison, even without Credit Bureau. Anyone wishing to take out a risk loan should therefore exercise great caution. Many black sheep are still lurking on the business with low-credit borrowers.
Credit intermediaries who are serious about their business do not require prepayment. In addition, they offer the borrower neither savings contracts, credit cards nor life insurance to improve credit opportunities. Credit business and commission business are strictly separated. The agent should of course be able to earn a commission. Nobody works for free. However, the commission should be limited to the lending business and thus the successful loan brokerage. All other practices indicate abuse.
Realistically assess your own credit opportunities
There is a realistic chance for a loan without Credit Bureau. The Credit Bureau FH study puts this figure at around two percent of all applications. However, given the client of this study, the number appears extremely low. Of course, the installment loan, compared with and without Credit Bureau, is less likely to be approved without Credit Bureau. Nevertheless, a significantly higher number of approvals can be assumed. Without a general character, this can already be derived from private loans without Credit Bureau.
In all probability statements, the individual case always plays a decisive role. Realistically probable is the loan with negative Credit Bureau only in a fundamentally improved life situation. The entry has long been paid for, but cannot be deleted. In these cases, there is a good chance of getting a loan through reputable providers.