Consumers speak of a loan application despite Credit Bureau if they have forfeited a negative entry. In fact, credit protection has data on every resident, with existing debt in the form of a previously borrowed loan counting as neutral.
Basically, the further loan application for existing debts is unproblematic, provided that the customer can pay the previous and the new installments on time. The Credit Bureau information does not provide complete information about existing debts because the credit protection company is not aware of the actual use of credit lines and retailers do not consistently report installment payment agreements.
Borrowing despite debt and Credit Bureau through banks
If an existing Credit Bureau entry is a soft negative feature, some financial institutions grant a loan despite debt and Credit Bureau if the rates of all loans combined are lower than the applicant’s disposable income. It is advantageous for a successful loan application if the customer can demonstrate that his or her financial situation has improved since the Credit Bureau note was entered. It is ideal to end unemployment in the meantime.
An alternative to German financial institutions is to apply for a loan through a Swiss bank despite debt and Credit Bureau. Since federal credit institutions cannot obtain any information from the German Credit Bureau, they will not find out if there are negative entries or whether the applicant has to service further loans.
Alternatives to borrowing with debt and Credit Bureau
Consumers can take out a loan in spite of debt and Credit Bureau not only through a classic bank but also through a website for arranging personal loans. On the corresponding websites, loan seekers give a detailed explanation of the reason for their loan request, while the operator supplements the information on data relating to creditworthiness.
A private lender thus finds out anonymously whether a loan seeker has a negative Credit Bureau entry. Anonymity is guaranteed because the platform operator is the only one who knows the mutual contact details and bank details of private lenders and borrowers. Many members of the personal loan platforms subscribe to the desired loan in spite of debt and Credit Bureau if the intended use convinces them.