Anyone who knows about negative entries in the Credit Bureau or fears that such dark points are registered in the payment history, will often apply for a loan immediately without Credit Bureau. Rational is not this behavior, because with or without Credit Bureau – a credit check takes place before any credit agreement, if you do not lend the money just in the family or friends. With Credit Bureau, the conditions are by no means worse, in most cases even better. And rejection of a loan can be salutary if it shows a way out of over-indebtedness.
What the Credit Bureau knows about you
More than eight hundred million records for nearly seventy million people and five million companies are stored at Credit Bureau. Data protectors, the Credit Bureau is just as a thorn in the eye as credit interested parties whose application for a Credit Bureau information has been rejected before. Before making a loan application, you should know what Credit Bureau has stored about you, so you may be able to correct or delete any erroneous data.
The information required by the Federal Data Protection Act must be provided to Credit Bureau free of charge on request once a year. However, the Credit Bureau does not make it easy for you – the document is only available by post and only comes with a few weeks delay. It goes online faster, but that makes the Credit Bureau pay, either once or as a subscription.
Think carefully about whether you really need this performance. From the stored data, a base score and various industry scores are calculated. For the lending especially the bank score is interesting. According to a point system, a credit rating between A (0.85% default risk) and M (34.75% default risk) is determined.
Banks are required to conduct a credit check
The German financial institutions use the Credit Bureau bank score in order to comply with their legal obligation to check the creditworthiness of consumer credit in particular. Similar regulations exist throughout the EU and in many other countries. If it is not the Credit Bureau, then it is other business information services that examine the applicants. So no one comes without a credit check, by the way also not with personal loans, as they are mediated by Best Lender, Cream Bank or Capital Lender. So what speaks against accepting the Credit Bureau query?
The circle of providers is higher, confidence strengthened, interest rates usually cheaper. If a lender rejects the application for the Credit Bureau entries, it should be reason enough to think – about its own diligence in money matters, but also about the current debt level. Instead of a new loan, which is needed immediately and without Credit Bureau, a sound rescheduling of all existing obligations for a longer installment loan would be the appropriate and also cheaper solution.