A credit without a credit check is a loan that does not require a Credit Bureau query, but the borrower must still have creditworthiness. Credit Bureau, as a private law association, is there to ensure security in the lending business.
Credit Bureau stores the payment behavior of citizens for its contractual partners such as banks, mobile operators etc. If, for example, an online loan application is made, a credit check is carried out using the data stored in Credit Bureau. If this gives negative information, a loan application is almost always rejected. A credit without a credit report can still exist.
Alternatives to credit without a credit check
There are two ways to give a loan seeker the option of a loan without a credit report. Firstly, the classic variant of Swiss credit, which is characterized by a limited loan amount. It is usually around 3,500 USD to be repaid in 40 monthly installments. This form of credit is offered by Swiss banks to German loan seekers with negative Credit Bureau entries. In such a case, there is talk of a credit without a credit report, since these banks are not affiliated with Credit Bureau. A possible disadvantage with this type of loan could be the limited loan amount and the specified term, as well as a high effective interest rate of around 13%.
The possibilities for a loan without a credit report
Smaller or medium-sized private banks offer better options for a loan without a credit report. Many of these banks are very positive about lending, even with negative entries. The outlook for the big banks is practically zero. Simply because of the automated application system that such applicants with low income, too old age and a bad Credit Bureau sorted out immediately. An individual credit check is not given here.
In the case of smaller private banks, applications are often still checked manually, so sufficient income can cancel out a negative entry. One thing is certain, no matter whether the classic Swiss loan or a loan from a smaller private bank is taken out, the creditworthiness must be right. The focus is not on the credit report but on the economic situation of the loan seeker.