What are bad credit loans?
Credit despite bad credit
Many borrowers think: banks are most likely to lend to people who have a steady income and good credit rating.
That's true, but having a bad credit rating doesn't necessarily mean you won't get a loan. We show you how you can get a loan in a very uncomplicated way, despite a bad credit rating and also despite a bad Schufa.
Who gives loans despite negative Schufa and bad creditworthiness?
Basically, you have three different options to get a loan in spite of negative Schfa. These three options are:
- Apply for loan with an additional borrower
- Get credit from private individual to private individual
- Obtaining loans from foreign banks
Where can I get a loan despite a bad credit rating?
In the following, we will introduce you to the banks where you do not have to worry about your credit check, since you can also get credit here despite a negative Schufa and despite a bad credit rating.
Normally it is almost impossible to get a loan from your house bank as well as from the other traditional banks if you apply for a loan with bad Schufa and low creditworthiness.
For this, however, there are special online providers who assess the credit check less strictly than conventional banks. With these providers, people also receive loans that have been rejected by their normal banks.
Because these providers specialize in lending to borrowers who are usually not ideal borrowers. These borrowers include, for example, people with a bad credit rating, negative Schufa, a low Schufa score or a Schufa entry.
If you belong to this category of borrowers, the best thing to do is to apply for a loan application from one of these providers online, which we will introduce to you.
So you have the best chance of getting a loan despite a bad credit rating from a provider on the Internet who grants special loans to people with a poor credit rating or credit despite negative Schufa. In Germany, these are primarily the banks that grant short-term loans.
One should also mention the private credit marketplaces that use a different credit check method than an ordinary bank.
If you want to apply for a high loan amount with a bad credit rating, you usually need a guarantor. However, if the consumer has a bad Schufa, a loan without Schufa is the best way to get money quickly and easily.
The good news is that there is even a provider in Germany who does not need proof of income to grant you a loan, even with bad creditworthiness and Schufa information. Read on to find out exactly where you can get a loan despite a negative credit rating.
Apply for a loan with an additional borrower
Even if your own credit rating is not particularly good, you can still get a loan. Did you know that the risk for the banks is much lower when two borrowers apply for a loan together?
It often does not matter if a borrower does not have a good credit rating. Even a negative Schufa query is often not an obstacle if the second consumer can show a positive Schufa query.
However, one should note that at least one of the two applicants should have a steady income.
This means that when choosing the second applicant, you should make sure that you choose a person who has both a positive credit rating and Schufa score and a regular income of their own.
Especially if you only have a slightly negative Schufa score, this way is often the best way to get a loan despite a negative Schufa.
Loans through Moni365
You don't know anyone who would be financially able to lend you a loan? Doesn't your loved one want to take the risk of loaning you a loan because of your poor credit rating?
Even then, you have the option of getting a loan despite a bad credit rating. This is made possible by so-called credit marketplaces.
You can borrow a loan from private persons you do not know and who are also unknown to you. These loan marketplaces have some notable advantages over banks. With this one Almost all loan providers have a chance of getting a loan, even in spite of a bad credit rating. You can also get a loan from this provider despite Schufa.
Even groups of people for whom it is normally difficult to get a loan have a chance here. This includes students, self-employed, freelancers and also employees in the probationary period. Are you wondering why this is possible?
This is because this online provider uses its own method for credit checks, which is very different from ordinary banks.
Your bank uses only a few factors to evaluate your creditworthiness, such as assets, income, expenses, debts and of course the Schufa information as well as your personal Schufa score.
With this provider, however, the determination of your creditworthiness is handled differently. Moni365 uses the Schufa query and your Schufa score as just one of more than 300 different features to determine your creditworthiness.
This means that you have a much better chance of getting a loan despite Schufa, even if you have already been rejected by the traditional banks. A negative Schufa entry is not necessarily a problem either.
Loans in the personal environment
Another way to get a loan despite a bad credit rating and despite a negative Schufa is to contact a private person in your close environment.
This is often a popular option to get the loan amount you want without having to turn to the banks. You certainly know someone who is financially well-positioned.
In this case, you could ask your partner, close family members or close friends to grant you a loan without Schufa.
If you are lucky, your lender may even be willing to give you an interest-free loan.
However, for the sake of the tax office, you should note that this is then a gift instead of a loan. Nevertheless, both a donation and a loan must be taxed, as the tax office wants.
If the loan is not taxed or disclosed to the tax office, the lender commits a tax offense.
It is therefore important that the loan without Schufa is not just an oral agreement. Instead, you should write down all the data in a contract, even with a private loan.
The contract should contain the following information: loan amount, APR, term and, if available, collateral.
Basically everything that would be in a loan agreement with a bank. This is not only used to inform the tax office.
It also serves as protection for both the lender and the borrower. Because unfortunately some good family relationships and long friendships on private loans have already broken because the details and agreements regarding the loan were not adhered to.
Loans from foreign banks
Your third option to get a loan despite a negative Schufa or a loan despite a Schufa entry is to contact a bank that is based abroad. Because the Schufa institution is a German credit agency that does not exist in this form outside of Germany.
So if your Schufa entry is really bad, you can apply for a loan to a foreign bank as a last resort. However, you should contact a credit intermediary instead of a foreign bank directly.
However, it should be mentioned that there is no reputable bank abroad that gives loans to people in an extremely bad financial situation.
If there is no collateral, assets, a regular income or a permanent employment relationship, no loan application will usually be approved. Because in this case the risk of not getting the loan back in the event of a payout would simply be too great.
Make sure you stay away from those vendors who offer you large sums of money with no interest and proof of your creditworthiness. Also, beware of excessively high interest rates. These are often dubious providers!
Can you also get a loan without a private credit bureau?
Are you worried about your Schufa entries? This is not a problem with this type of loan, because: Yes, it is possible!
This is because many countries have no Schufa as we know them. For you, this means that you can apply for a so-called Swiss loan from a foreign bank.
This is a normal installment loan, but does not require information from the Schufa. You can request a free installment loan quickly and easily online.
The terms for your loan, including the term and interest, are available free of charge here. However, one should note that a Swiss loan is usually only granted to the unemployed if they can show a second co-applicant.
This type of loan is also suitable for debt restructuring to escape the debt trap, as this loan is usually not tied to a specific purpose. In the case of approval, there is also no Schufa entry for the Swiss loan.
Which bank is the easiest to get a loan from despite a bad credit rating?
In Germany there are more and more providers who also lend money to borrowers with relatively poor credit ratings. Often these are loan providers who lend money on a short-term basis through a so-called short-term loan.
The conditions for short-term loans are slightly different than for ordinary installment loans: The term is short and the interest rates are higher than usual in comparison.
However, since this loan is a relatively small amount, it doesn't matter much. With short-term loan providers, it is usually only possible to borrow small amounts of money.
This is because the requirements for a loan are lower than with conventional loan providers.
If you need more money than a few hundred euros to a few thousand euros, a short-term loan is not suitable in this case.
There are different providers of short-term loans, always compare the offer before you borrow money.
Good to know: A short-term loan has lower requirements than conventional loans, so that risk groups such as self-employed or freelancers can also take out such a loan.
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