Foreign banks can be helpful if German banks refuse a loan because of the customer’s poor credit rating. They grant a loan even in difficult cases. However, the legitimate question still arises whether a loan from foreign banks is absolutely necessary. A bad credit rating means nothing other than that the person concerned has run into financial difficulties.
How does a loan from abroad work?
If you absolutely need a loan with a bad Credit Bureau, you can only get it via a loan from foreign banks. Creditworthiness only plays a role if there are already garnishment of wages or salaries. Under these conditions, a loan abroad is also no longer possible.
Without attachments, a loan from abroad is the last resort. The average loan amount is EUR 3500. A fixed employment relationship with a corresponding salary is expected for a commitment. The self-employed are exempt from this loan. Anyone who is permanently resident in Germany and is at least 18 years old has a good chance of getting a loan from a foreign bank.
Fixed rates and fixed terms
The difference to a loan from a German bank is the fixed term. The monthly rate is also fixed accordingly. There is no way to wish for a different term with lower or higher rates. The borrower is free in terms of purpose. The money can be used for purchases or for debt rescheduling. An increase is only possible when a large part of the loan amount has been paid.
A loan from abroad can fill a financial gap, but those who are heavily in debt should better avoid it. The banks abroad act against defaulting debtors as well as German banks. If there are no installments for the loan, measures are taken to get the money back. In the worst case, there is a risk of attachment by the employer. In these cases, the Credit Bureau is very well informed about the facts.
Tips instead of credit
Anyone who has debts should try to settle them first. There are organizations that provide advice. Most creditors engage in installments. However, the amount should be chosen so that the installments can actually be paid. Once all debts have been paid, a settlement note is made in the Credit Bureau. However, the issue itself remains for three more years. Only affidavits must be deleted immediately after payment of the open item in the Credit Bureau and at the responsible local court.