A loan for Hartz 4 recipients without Credit Bureau is usually taken out via private lenders, since banks simply do not accept a Hartz 4 recipient with a pre-loaded Credit Bureau or the request to refrain from being asked as a borrower. As a result, the unemployed are forced to search for alternatives on the credit market, which are usually private loans either from strangers or from the immediate vicinity.
Loan among friends and family members
These loans are much less dependent on creditworthiness, which is why people who are excluded would have been excluded as borrowers. Of particular note is the loan among friends and family members, which is usually issued without any benchmark or minimum credit rating requirement. This means that unemployed people can also benefit from a loan for Hartz 4 recipients without Credit Bureau.
Due to the personal relationship between the borrower and the lender, this loan is often even tendered without any interest burden, which means that the borrower can fully utilize his “framework” with the individual, without having to repay more than just the loan amount at a later date. This option is of course only reserved for people who actually have liquid lenders in the private environment who are actually willing to grant a loan. If this is not the case, foreign lenders must be contacted.
Personal loans from outside lenders
The loan for Hartz 4 recipients without Credit Bureau is often granted by private individuals who act as free lenders for the duration of the loan. These people grant loans to achieve a high percentage return, which is why the interest burden is often between 8 and 16 percent, depending on the creditworthiness of the borrower. As a result, the unemployed usually have a particularly high interest rate, which often borders on the fixed interest rate on an overdraft facility.
The profitability of these loans is of course extremely poor, which is why such loans are only actually taken out by people who, due to their environment or their creditworthiness, have no other option. Foreign lenders can be found, among other things, on various credit portals that specifically connect private lenders with private borrowers. It is not uncommon for several lenders to participate in a loan, so that each individual lender takes a lower risk, while the borrower nevertheless receives the full amount from the loan for Hartz 4 recipients without Credit Bureau.
In any case, the borrower should in the long term create a better situation for borrowing, for example by at least starting a mini-job or improving the Credit Bureau entry. A good start is already when the Credit Bureau entry is requested for checking itself.