How to increase Credit Bureau-free loan
Anyone who has taken out a Credit Bureau-free loan some time ago and now wants an increase should know that this is generally possible. Credit Bureau-free credit is for customers who have problems with their Credit Bureau. A negative entry and borrowing from a regular bank will no longer be possible. What does the customer have to do if they want to top up a Credit Bureau-free loan?
The situation with the Credit Bureau-free loan to top up
But why are customers looking for Credit Bureau-free loans? In addition, the loan seeker should know that banks have three approval criteria. That is sufficient income, clean Credit Bureau and permanent employment. If the loan seeker has a negative entry in his Credit Bureau, most banks refuse a loan. The risk of default seems too high to them.
The way out of this situation offers a Credit Bureau-free loan that comes from abroad. In particular, it is listed under Swiss credit, as the loans all came from the Swiss Confederation until 2009.
A Credit Bureau-free loan always had a bitter aftertaste. Many people associate it with a credit rip-off. In some cases, they are even correct with it. Because a Credit Bureau-free loan from a private person should be checked very carefully by those who want to borrow. The reason for this is that all conditions were concluded privately and were not checked by a supervisory authority. To what extent a customer can top up a Credit Bureau-free loan is stated in the contract.
The other side of Credit Bureau-free loans are the loans offered by reputable credit brokers. The money comes from abroad and now mainly from Liechtenstein. Up until 2009, the loans came from a large Agree Bank credit intermediary from Switzerland. The company had to give up its business after years of litigation and is no longer allowed to grant loans to Germans.
Fidium was the market leader in these loans. The reason for the legal dispute was a lack of a banking license. If loans are still from this period, it can no longer be possible to top up Credit Bureau-free loans. This business has been taken over by Across Lender from Liechtenstein since 2010. The loan terms and conditions of the Credit Bureau-free loans have been taken over 100%.
The application for a Credit Bureau-free loan can be increased for loans from Liechtenstein. The credit route to top up is the same as for the first application. However, the conditions are calculated like a new loan. Of course, this type of credit also requires certain conditions that the customer must meet.
Increase the prospects of Credit Bureau-free credit
If you don’t get a loan from a regular bank because of your bad Credit Bureau, you have the opportunity to turn to the Credit Bureau-free loans. A negative entry does not show that the customer is not creditworthy. The entry could already be done long ago and also deleted. The customer did not think of doing this. That is why experts recommend that anyone considering a loan should obtain self-assessment from Credit Bureau once a year. From this, he can see whether the entry still exists.
Topping up a Credit Bureau-free loan can generally be possible. The conditions are the same as for the first loan. The Credit Bureau-free loan comes almost exclusively from Across Lender, which sets strict requirements for customers. The bank does not query Credit Bureau and bears the risk with the customer’s income. For this reason, the loan is more expensive than a traditional loan.
To top up a Credit Bureau-free loan, the customer must have a sufficiently high and regular income. The income must be above the exemption limit and must not be pledged. An example: A single person must earn a net 1160 dollars for a 3500 dollars loan. If the borrower is married and has children, the exemption limit is shifted upwards. The income should have a attachable share of at least 80-100 dollars.
The peculiarity of the bank is also evident in the loan amounts. The Liechtensteiner Bank only approves two loan amounts. Once 3500 dollars and a maximum of 5000 dollars. Both loans have a term of 40 months. The rate for the 3500 dollars amounts to 105.00 dollars, the 5000 dollars loan is repaid at a rate of 150.00 dollars. Since the loans are secured by income, the customer must sign a garnishment certificate before the loan is approved.
If there are defaults, the bank will seize the wages. For this reason, the loan should be paid on time. The customer should know that these loans are only processed through a credit broker. Anyone who has had a good experience with the first loan should make use of this credit intermediary again. Nevertheless, its terms and conditions should be checked again.
To top up a Credit Bureau-free loan is the same as applying for the first loan. The increase goes like this: For example, if you have already paid 1000 dollars on the loan, the loan amount is 3500 dollars, then the Credit Bureau-free loan could be 2500 dollars as an increase. The interest rate for the old loan and for the top-up is 11.26%. However, the current low interest rate phase could show a better interest rate.
For example, the Credit Bureau-free loan to top up could be cheaper than the first loan. A credit intermediary does not necessarily have to be commissioned to increase the Credit Bureau-free loan. The customer has the bank’s data and can apply for the top-up straightforwardly.
However, if the customer wants a higher loan amount, it may be useful to use the credit intermediary who has already processed the first loan.
In general, when commissioning a credit agent, it should be noted that he does not require any upfront costs or prepayment. The urging of signing insurance contracts is also not serious work. In general, there is no Credit Bureau-free loan without income, in the case of garnishment of wages or other serious features in Credit Bureau, which is why the Liechtenstein credit bank closes its doors.