Credit without a credit check - overview of various options and requirements

WHERE CAN I GET A LOAN WITHOUT A CREDIT CHECK?

Many financial service providers offer loans without a credit check:

• Pawnshops: Since you are liable for the value of your deposited item with a pawn loan, a Schufa query is not necessary.

• Banks: Although most banks carry out a credit check, there are exceptions. If you are granted an overdraft facility, for example, monthly salary receipts are sufficient as security.

• Friends & relatives: If you borrow money privately from friends or family, the agreement is usually based on mutual trust. A credit check will therefore not be necessary in most cases.

• Private loans (e.g. via platforms): In the case of loans from private lenders via platforms, a loan without Schufa is possible in some cases.

• Credit from the employer(salary advance): In most cases, employers grant their employees this form of credit on the basis of a personal relationship of trust. A credit check is therefore not usual.

WHERE CAN I FIND A LOAN CALCULATOR?

There are many different types of credit calculators.

You can use a budget calculator (in our example from s-Bausparkasse) to find out how much money you have left for a monthly loan installment before applying for a loan.

You can then enter your details on many different finance websites or financing apps and find out immediately what options you have if you are approved. You can either enter the amount you need and choose your term depending on the possible installment amount. You can also enter the monthly installment amount and find out how much money you can get in your case.

Some reputable pawnshops also offer online calculators for pawn loans. You can find out immediately how much a pawn loan is possible for your collateral. The interest and fees are also displayed transparently. At CASHY, you can even use your vehicle details to find out how much money you can borrow using your car as collateral.

WHAT HAPPENS DURING A CREDIT CHECK?

A credit check usually involves a query via the debtor register such as KSV. This assesses the likelihood of you being able to meet your financial obligations. For example, your income situation, existing debts, payment history or other financial obligations are taken into account.

Can I also check my credit status myself?

Yes, you can request a free self-disclosure from Schufa once a year. You will then find out what data is stored about you and what credit rating you have at that time.

If you need your information quickly, you can also have a query carried out via fee-based online services. The providers of these services use KSV data.

HOW DOES THE PROCESSING OF A LOAN WITHOUT A CREDIT CHECK WORK?

Depending on the provider, the loan process may differ in some respects. By and large, however, you can assume the following procedure:

1. Submit an application: Whether online or offline: You always apply for your loan first.

2. Ability to repay: If there is no conventional KSV query, it could happen (with the exception of pawn loans) that providers want to secure themselves in other ways. For example, salary slips could be requested.

3. Collateral: With a pawn loan, you are only liable with your collateral, so it is not normally necessary to check your financial situation. With other forms of credit, collateral such as real estate or guarantors may be required for a loan disbursement.

4. Signing the contract: Once you have been approved for your loan, you sign your contract. Many providers also offer online processing, in which case you sign using SMS-Tan. At a pawn shop, on the other hand, you will simply be issued with a pawn ticket for your item.

5. Pawn shops usually pay out immediately in cash, while other providers usually transfer the money to your bank account.

6. You should find your chosen term including interest and fees in your contract or on your pawn ticket. In most cases, repayments are made monthly. However, there are also bullet loans where you only repay your loan amount at the end of the loan term. In this case, only the interest is repaid monthly.

Why is it possible to obtain a loan without a credit check?

For example, if you use your property as collateral, the lender can use it in the event of non-payment. There are also lenders who charge higher interest rates to compensate for the risk of non-payment.

HOW QUICKLY WILL I GET MY MONEY?

The average payout time depends not only on the lender you borrow the money from, but can also depend on other factors:

• If your documents are not complete, this can slow down the payout process.

• Online providers can often pay out the money faster than traditional bank branches.

• The type of payout can have an influence on the payout time. Cash, for example, is often paid out immediately, while a bank transfer can take up to 2 working days depending on the bank.

Below we give you an approximate indication of the usual waiting time for each provider.

HOW CAN I RECOGNIZE A REPUTABLE CREDIT PROVIDER?

There are a few pointers that distinguish reputable providers from dubious ones. Below you will find an overview of your options:

• Check whether there is data on your credit provider in the company register. You can find the company name in the website's legal notice.

• Check whether the company communicates the loan fees and interest rates transparently.

• Check whether the company complies with current data protection regulations. You should find the relevant data protection information on the homepage.

• Positive customer reviews can be a sign that the lender is reputable. Make sure that the reviews appear credible.

• A reputable lender has an easily accessible customer service team. If you can't contact them by phone or email, be careful.

• Also read the small print. There are many different fees. In addition to interest, processing fees, brokerage fees, account management fees, fees for additional services and much more are often charged. All relevant fees should be clearly stated in your contract.

HOW QUICKLY DO I HAVE TO REPAY MY LOAN?

It all depends on the type of loan and the term you have chosen:

• Installment loan: You repay the borrowed amount plus all interest and fees in monthly installments.

• Term loan: You repay the interest and fees each month. The entire loan amount is repaid in full at the end of the term.

• Repayment-free loan: You can agree a certain period of time with some providers during which you only pay the interest. At the end of this agreed period, repayment of the loan amount begins.

• Flexible repayment: Some providers allow you to adjust the frequency and amount of installments within a certain range.

• Pawn loan: The term is only 1-3 months, but you can extend your pawn loan at any time or repay it in installments. Repayment is similar to that of a bullet loan.

WHAT REQUIREMENTS DO I HAVE TO MEET FOR A LOAN WITHOUT A CREDIT CHECK?

You must meet the following requirements to take out a loan without a credit check:

• Age of majority: You must be of legal age to take out a loan. Confirmation is provided by means of an identity card or passport.

• Regular income: In many cases, you will need income from employment. For this purpose, you must either grant the provider access to your account or submit payslips. Alternatively, self-employed people are often asked to provide an income tax statement. For pawn loans, you generally do not need a confirmation of income, as you are liable with your collateral.

• Permanent residence: Most providers require a permanent residence in the same country. In many cases, you will therefore need a current registration certificate. However, you also have the option of taking out a foreign loan such as a Swiss loan.

• Bank account: Many providers require an account number to which they can pay out the loan amount. However, you can also get up to EUR 9,999 in cash at a pawn shop.

• Collateral: If you deposit real estate or collateral, this is often sufficient as security. In this case, you will need an extract from the land register or a vehicle registration certificate/vehicle title, for example.

FREQUENT QUESTIONS

Do I have to specify a purpose for my loan without a credit check?

This varies from provider to provider. For pawn loans or mini loans, no further information on use is usually required; for higher sums without further collateral, you usually have to disclose what you will use the money for.

How quickly will I get my loan paid out?

Depending on the provider and payout option, you can receive your money immediately or within 1-5 days.

How will my loan be repaid?

You can repay the borrowed amount either in installments or as a one-off payment at the end of the term.

Can I apply for my loan online?

Yes, with most providers you have the option of submitting an application online.

Can I remain anonymous with a loan?

You have to disclose your identity to all providers if you want to take out a loan. With pawn loans, however, it is not necessary to disclose your financial situation - in this case, no one will find out that you have taken out a loan.