Loans without Private credit information enjoy a dubious reputation. This is because they are often forgiven by dubious providers who lend horrendous interest rates and do not act very cautious in debt collection. In addition, a Private credit entry indicates that a borrower has already taken over financially in the past. That this happens again is not unlikely in some cases.

However, in some cases a loan without Private credit can be very sensible and responsible. Private credit entries remain available for several years. It is precisely the youthful sins that can make people long in this way, even though their financial situation and their handling of money have improved considerably. However, they seldom receive a fair loan from normal credit institutions whose terms reflect their current situation.

Those who do not get credit from their bank, even though their credit rating is actually sufficient to guarantee the repayment, get a good alternative with loans without Private credit. However, prospective borrowers should pay special attention to the offers. As before, there are many black sheep among the providers of loans without Private credit who want to exploit the financial hardship of their customers through high fees and exorbitant interest rates.

However, anyone who hopes to receive a loan without Private credit from a reputable provider despite debt and / or low income will be disappointed. Each credit institution checks the creditworthiness of its potential customers and only lends money if the conditions allow repayment. Even if this is not the case, borrowers must expect that the loan will cause them great difficulties in the future. A loan in such circumstances is a loss business that will be accompanied by a lot of pressure and stress and is never worth it.

By contrast, foreign banks, above all from Switzerland, Lichtenstein and Luxembourg, are regarded as reputable. The credit institutions do not have access to the Private credit score and therefore check the creditworthiness of the customer in a different way. As a rule, payroll accounting is used to estimate the risk of default. That is why, for a loan without Private credit, an indefinite employment contract is the most important feature for obtaining a favorable loan. The chances of getting a loan without Private credit are good for reputable providers only if they have the appropriate credit rating. Only around one fifth of all loan applications from Germany are actually granted.

Even intermediaries of Private credit-free loans should definitely be checked for their seriousness. Advance payments and high processing fees suggest that the provider is untrustworthy. In addition, potential borrowers should make sure that the brokerage fee increases the borrowing costs in some cases significantly. In case of doubt, a comparable offer can be found by a German supplier.

A loan without Private credit is therefore far from the panacea that dubious providers promise in their advertising. Those who are already in debt should first consolidate their budgets before thinking of borrowing again. Reputable providers must keep the risk of default as low as possible. This either leads to the rejection of a loan application if the potential customer could not pay the repayment installments, or the interest rate increases with increasing risk. Therefore, caution is needed before loans without Private credit, although in some cases such a loan, which is also called a Swiss loan, can be a sensible alternative.