Taking out a loan despite a negative Credit Bureau is not a matter of course, even if it is only a small payday loan. Direct banks generally reject loan applications if the automatic Credit Bureau query reveals negative characteristics. Anyone who makes a loan application using the known loan comparisons will have a similar experience.
No negative Credit Bureau entries, you can almost always find that in the product descriptions that partner banks make available to the comparison portals. Nevertheless, there is a way to a small payday loan despite Credit Bureau entry with conditions that can be described as fair.
Solid credit brokers help their customers get loans
Despite bad Credit Bureau. This service is provided without prepayment and is completely non-binding for the applicant.
We recommend the two well-known German credit intermediaries Good Credit and Good Finance.
With Good Credit, small payday loans are possible from as little as USD 1,000.
Good Finance arranges loans for small sums from an amount of 1,500 dollars.
Short terms from twelve months are no problem for both credit intermediaries.
The interest depends on your credit rating. They result from the non-binding loan offers, which specify the respective effective interest rate.
For your information, the information according to the Consumer Credit Directive:
Debit interest rate of 1.93% fixed for the entire term, USD 3,000 net loan amount, 1.95% effective annual interest rate, 24 months term, no processing fee, monthly loan installment USD 138.21, total amount USD 3,317.04. Creditworthiness required.
Representative example: With a net loan amount of, for example, USD 5,000 and a term of 72 months, two-thirds of Good Credit’s customers are likely to receive an effective annual interest rate of 8.45% or cheaper (fixed borrowing rate 7.91%). Good Finance:
Fixed borrowing rate from 3.92%, effective annual interest rate from 3.99% – 15.95%, net loan amount from 1,500 to 250,000 dollars, a term from 12 to 120 months, creditworthiness required.
How do the credit intermediaries work?
You will find a Credit Bureau clause in the online form for the loan request. It includes the authorization of financial service providers to obtain credit information from Credit Bureau and, if necessary, from other credit bureaus.
Do not cross out the Credit Bureau clause, even if you know that your data record contains negative characteristics.
This enables the loan broker you have selected to use the usual procedure for processing applications.
The credit broker, regardless of whether Good Credit or Good Finance, will first obtain information that is neutral to the situation and try to get offers for normal installment loans (loans despite Credit Bureau entry) from the partner banks.
Credit intermediaries are familiar with the credit market and work with banks that grant loans even at relatively low scores.
Therefore, it may well be that they receive a relatively cheap offer for a loan, although there are some negative features.
However, it is not always possible to grant normal installment loans despite negative Credit Bureau entries. The type and extent of the negative features are decisive.
The chances for a conventional loan are good if the negative entries are marked with a completion note.
There are no chances of a loan if the credit report shows hard entries such as an affidavit, insolvency, arrest warrant or ongoing enforcement measures.
In other cases, you can get a normal small payday loan if the entries are relatively insignificant and explainable. Despite Credit Bureau, a small payday loan is excluded if outstanding claims from pre-loans are identified.
The credit intermediary will inform you immediately whether negative entries prevent the issuing of a normal small payday loan or whether an offer can still be made.
If a small payday loan cannot be obtained, there is still a way out, or rather an emergency solution: the small payday loan without Credit Bureau.
Small payday loans without Credit Bureau are granted by foreign banks and can be arranged by domestic credit intermediaries.
The loan terms are rigid. Credit Bureau-free international loans are granted in amounts of USD 3,500, USD 5,000 and USD 7,500. The interest corresponds to that of overdraft facilities. The loans are repaid in 40 equal monthly installments.
Small payday loans without Credit Bureau can be repaid in whole or in part at any time. So there is certain flexibility.
You can find more details in our article on loans without Credit Bureau.
A small payday loan from the house bank despite Credit Bureau
It is often assumed that house banks in principle do not grant loans as soon as they find negative entries. In principle, this statement is not correct.
If you have good contacts and a good relationship with your house bank, a loan application is worth trying. In a conversation with the clerk, you can explain the circumstances that led to the negative entry.
Your bank may be willing to meet your loan request despite the presence of negative features, especially since it is only a small amount of loans.
Special collateral in addition to the assignment of wages will increase your credit chances. In the case of a small payday loan, simply usable collateral, such as bank balances or securities, is the most suitable.
P2P small payday loans despite Credit Bureau
P2P portals broker online loans from private to private. Applicants publish their loan requests on the portal. A variety of private investors can bid on it.
If the loan request is financed by private investors, a loan contract is concluded. For legal reasons, the loan is formally processed through a partner bank of the portal, but the money comes from private individuals.
If the loan is successfully concluded, the credit exchange receives a commission.
The best-known German credit exchange, E-Money, arrange loans from private to private from an amount of USD 1,000 with a minimum term of twelve months. Despite the negative Credit Bureau, loan applications from the market leader E-Money are not unsuccessful from the outset.
However, a loan application is also hopeless here if serious entries are found.
The chances increase if a motor vehicle can be transferred for security.
After a complicated credit check, E-Money issues credit certificates that are used to determine interest rates. This leads to a wide range of interest rates.
Here is the product information from E-Money (as of September 2017):
Net loan amount from $ 1,000 to $ 50,000, terms from 12 to 84 months, max. eff. Annual interest rate 19.5%, including a one-off fee of 2.95% of the net loan amount.