One thing has changed in the credit market in recent years: banks have become more cautious after the crisis, and collateral is less than a good credit rating, especially for small loans. This includes the obligatory credit bureau exam. In case of a negative result, a cancellation is preprogrammed. Nevertheless, the chances of a loan despite rejection are not bad.
Swiss banks waive credit check
For a loan despite rejection, there are opportunities, especially abroad. Because the credit bureau exam is common in Germany, but not in Switzerland. For Swiss banks, entries at credit bureau are irrelevant; whether or not a loan is granted depends entirely on the creditworthiness of the debtor. In plain language this means that the income must be attachable. On the one hand, the monthly income must be above the seizure limits, on the other hand, it must not already be seized by other creditors.
For a borrower with two dependent persons this amount is currently $ 1640 net. Because more and more banks from Switzerland have discovered the German credit market, the comparison of different banks is also worthwhile. Online such a comparison is not only quite easy and non-binding possible, but also very fast. Just one to two hours are enough to complete application forms at various Swiss banks. The next day, the offers for the loan can be compared in peace despite being rejected. It usually suffices to compare the effective interest rates with each other.
This fee already includes all fees. The other methods of payment are usually similar to the loan amounts: The typical Swiss loan is 3500 USD and will be repaid in 42 months. If more capital is needed, a second loan can be added to the spouse. Depending on income, an interest charge of about 8 – 12% is expected. The frequently advertised 3-4% are only realistic if the income is unusually high. For such a clientele, however, such a loan amount is also not very interesting.
Private credit intermediaries increasingly successful
An alternative to the Swiss loan could be a private credit intermediary. The borrower simply registers on a private credit platform. For the credit intermediary, a proof of income must be provided, then the profile is unlocked. Now a loan can be requested. The potential debtor can set the monthly installments as well as the interest rate. In addition, he can describe in detail what the money is needed for. Private investors can look at this loan request and invest money.
In this case, the entire loan amount does not have to be financed by a single lender, it can also be split into different installments. A direct contact between debtor and lender does not come about, the settlement is done through the credit intermediary. He pays a commission for his expenses, which corresponds to about 1% of the loan amount. Basically, there are no limits on the loan amounts. But with a loan despite refusal it should be clear that small loans to 5000 USD have the best chances. In particular, if their purpose is well-founded and the credit is not just for consumer spending. The debtor’s capital, aside from his monthly income, is only the trust of the debtors.
And here, too, the laws of the capital market apply, according to which low confidence with high interest rates must be bought. In the end, the loan can be quite expensive despite rejection, up to 16% APR are no exception. But there is another way: with good creditworthiness can attract risk-averse investors who collect better 6% interest than losing their money. Then the loan is even really cheap despite the rejection.