German financial institutions not only make a Credit Bureau request before lending, but also arrange for the lending to be entered by the protection association for credit protection. Borrowing is not registered through Credit Bureau if consumers take out their loan from a Swiss or Liechtenstein bank. The corresponding banking products are called Swiss loans.
Who is the Swiss loan without Credit Bureau entry for?
The Swiss loan is issued without a Credit Bureau entry and also without a credit request from the German credit protection agency and is therefore suitable for loan seekers with forfeited negative entries. They only receive a loan from domestic banks in exceptional cases and after personal negotiations, while they can easily apply for the Credit Bureau-free loan from Switzerland online.
In addition, a Swiss loan without Credit Bureau entry makes sense for all borrowers who are planning further extensive financing within the following half-year. Taking out two or more bank loans within six months leads to a significant deterioration in the credit rating and thus to higher interest costs for the second loan. However, Credit Bureau receives no knowledge of a loan taken out in Switzerland, so that it does not have a negative impact on the customer’s credit rating.
How is the Swiss loan paid out and repaid without a Credit Bureau entry?
The Swiss loan without Credit Bureau entry is not a foreign currency loan, since both the payment and the repayment are made in dollars and not in Swiss francs. A prerequisite for applying for a Credit Bureau-free loan from a federal bank is that the loan seeker has earned income above the garnishment limit. Swiss banks only take into account the income from their main job and no earnings from possible part-time jobs or child benefits in their household accounts.
If consumers submit the loan application directly to a Swiss bank, the loan amount is limited to 3500 for most up to 5000 dollars at a few financial institutions. Larger loan amounts are possible by the applicant applying for the desired Swiss loan without Credit Bureau entry through an intermediary.
In doing so, he makes sure that a reputable credit service provider does not charge any upfront costs, but only an appropriate agency commission if the loan is successfully brokered. It is not possible to increase the possible loan amount through two Swiss loans applied for at the same time, since there is no Credit Bureau entry, but a report is made to the domestic credit protection agency.