Most reasons for rejecting a loan application are the negative Credit Bureau, so the recommendation from the beginning that anyone wishing to apply for a loan should obtain self-disclosure from their Credit Bureau beforehand. This shows whether the entries are rightly noted or could have been deleted long ago. Negative entries remain in Credit Bureau for three years. Even if the cause has been remedied, only the entry “done” is there. Nevertheless, Credit Bureau’s contractual partners, such as banks, can see this entry. But what about a loan despite having paid Credit Bureau entry?
The loan despite the paid Credit Bureau entry – the location
The Credit Bureau will only delete the entry automatically after three years. If the customer would like to have the completed entry deleted, he must become active himself. If the claim has been paid, companies or courts are not obliged to notify Credit Bureau. Every loan seeker can obtain self-disclosure once a year free of charge. From this he can then see what the negative entries are all about.
If the claim has now been paid, the creditor must obtain confirmation of payment from the creditor. This will then be sent to Credit Bureau together with the deletion order. After that, a loan will be possible despite the Credit Bureau entry being paid for. A positive Credit Bureau is not only cheap when a loan is needed. Customers must have an unencumbered Credit Bureau if they conclude a cell phone contract, if they are looking for a new apartment, and even when paying in installments at the mail order company, a clean Credit Bureau is important.
Most consumers also try not to get negative entries in the Credit Bureau. Nevertheless, this happens before. If the installment payments at mail-order companies are paid on time and properly, the negative entry in the Credit Bureau is quickly made. A mobile phone bill was forgotten, the entry is already there. But also difficulties with loan repayments or in overdrawing the granted credit line.
Many consumers do not even know this and are perplexed when a loan application is not approved. But banks protect themselves, because after all they want to see the money they have lent again. However, the negative entries in the Credit Bureau signal to her that in the past there were payment problems of any kind. This is a reason for the bank to reject it because it expects it again.
After a while, the customer no longer thinks of an entry, but is reminded of it at the latest when a clean Credit Bureau is necessary. Therefore, the self-disclosure is highly recommended, so the entry can be deleted when it has been completed and then there will be a loan despite the Credit Bureau entry being paid for. The customer has a much better credit chance for a loan.
The deletion of the negative entry should be done by post. The customer can search for a branch nearby and send the request there. If Credit Bureau does not delete the entry, the customer must contact the creditor who was responsible for the entry. The customer must then explain to the creditor why the entry should be deleted. This complete process is best carried out in writing so that the assignment can also be documented.
The credit protection
If the entry cannot be deleted for any reason, the bank will continue to refuse the loan. A loan is then rejected despite the Credit Bureau entry being paid for. Nevertheless, the loan seeker can count on a loan if he offers the bank a solvent guarantor. This secures the credit with its creditworthiness, the bank will approve the loan despite having paid Credit Bureau entry. However, there are some things to consider when naming a guarantor.
The guarantor must be fully informed about the guarantee. That the guarantee is entered in his Credit Bureau and can disadvantageously change his creditworthiness. If the borrower stops paying, the guarantor must continue to do so. There should also be an unconditional relationship of trust between the borrower and the guarantor. Finally, the guarantor places his signature on someone else’s loan agreement.
The guarantor should be aware that Credit Bureau has shown any payment irregularities before. He should only give a guarantee if he can easily pay a loan for his own debts. In addition, the guarantor of the guarantor must be impeccable, as must his income.
The Credit Bureaufree credit
If the customer cannot name a guarantor, the Credit Bureau-free loans from abroad could be an option. To do this, he should entrust himself to a credit broker. However, it should be mentioned that he should pay attention to the seriousness of the mediator. So preliminary costs or prepayment are an absolute no. Likewise, the signing of insurance contracts such as building society contracts, etc. A reputable broker will only credit his commission if the loan is approved.
The loan, despite the Credit Bureau entry being paid, can also be taken out directly from a bank. Litebank from Liechtenstein is currently the market leader in these loans. However, loan seekers must meet certain conditions. If a customer cannot do this, he will not receive a loan. The bank has clear standards from which it does not deviate.
Large amounts of credit cannot be expected. Three loan amounts are provided, which can be approved depending on the credit rating and provider. One time 3,500 USD, the most approved loan amount. With a very good credit rating, 5,000 USD and 7,500 USD can be provided.
The loan seeker who is looking for a loan despite having paid Credit Bureau entry must have a sufficiently high income, which must show an attachable share of at least 100 USD. It is very important to have a permanent position that should have existed for at least 6 months. The employment contract may not be limited in time and may not include a trial period. An example: A single person has to earn about 1,160 USD net to get the 3,500 USD credit.
The terms for all three loan amounts are 40 months. The interest rate is around 11-12%, depending on the credit rating, significantly higher. The loan of USD 3,500 is USD 105.00, the USD 5,000 loan is USD 150.00 and the USD 7,500 loan is USD 225.00. With the latter loan amount, however, the employment relationship must have existed for four years.
The bank does not ask Credit Bureau, the credit does not appear there either. But the bank takes a look at the public debt register. If there are credit terminations, disclosure oaths, bankruptcies or enforcement notices, this bank will not approve any loan despite the Credit Bureau entry being paid for.