Installment loan without credit rating.
Banks fulfill the wish for an installment loan after an extensive examination of two points: how it is with the old debts or how the creditworthiness of the applicant is. The old debts can be determined via the voluntary self-disclosure and the entry in the protection association for general credit protection, while the creditworthiness essentially depends on the income.
But what if you want an installment loan with no credit rating? To get this, you have to understand why this is actually a problem in order to convince the potential lender bank and individual.
The installment loan with no credit rating: that’s why it is so difficult to obtain
If you want an installment loan without creditworthiness, you ask in plain language for a loan with which you do not want to prove how you actually want to repay it. The word creditworthiness describes exactly the ability of a person to be able to repay a loan taken out. In fact, the creditworthiness is the amount that remains of the monthly net income after deducting the cost of living.
As a guideline: This sum should amount to at least ten percent of the monthly net income. So if you ask for an installment loan with no credit rating, you do not want to provide any information about these values, which quickly leads to the suspicion that the loan cannot be repaid.
The installment loan with no credit rating from a bank
This is a difficult problem for a financial institution in particular. Unofficially, the rule is that it is possible to grant a loan without Credit Bureau, i.e. without taking into account the old debts, but a loan without proof of creditworthiness is actually not possible. For this reason, you have to “borrow” the creditworthiness from another person, that is, to actually call in a guarantor who is liable for repaying the installment loan if necessary.
While other collateral can also be provided, it does not work nearly as effectively as the guarantor’s involvement. In addition, it is extremely helpful if the Credit Bureau entry is clean. It supports your own loan application very much if you can see that you have so far met all payment obligations in your life without any problems.
The installment loan with no credit rating from a private individual
Instead of going to a bank, you can also go to a private person and ask them for an installment loan with no credit rating. Basically, private donors are divided into two groups: helpers and investors. Helpers are the people who know you personally and who feel connected to the borrower on an emotional level – so they are relatives, friends and acquaintances.
Investors, on the other hand, are strangers who are looking for an investment that brings a return. They will then give a loan if, for example, it is a start-up aid for starting a business. These will also want to be convinced of the lending with certainty. As a rule, helpers do not take such tests. Your security is mutual trust.