Almost no one in germany who wants to take out a loan can get past schufa. As good as every citizen comes at least once in a life in the situation to apply for a loan or a building loan at a bank to have.
The reasons are many: the construction of a home, cost-intensive household appliances need to be replaced or you finally want to fulfill the dream of your own car. Generally, a person must have a certain level of creditworthiness – by which is meant the so-called credit score – in order to get a loan or instant credit. For all those who do not have it, however, there is an alternative: the so-called schufa-free credit.
Credit without schufa – what is behind it??
If you look in the endless expanses of the internet for information about loans or financing that do not ask about the creditworthiness of the future borrower, you will quickly come across "loans without schufa". Behind it is germany's SCHUFA holding AG, which acts as a "protection association for general credit security". Data on german consumers is collected there, which in its entirety provides information about the individual's creditworthiness.
In a specific case, lenders, such as a bank, ask if a person has the necessary credit score before making a loan to that company. If this does not apply, then consequently no such type of financing will be granted by banks. Loans with no credit history are now characterized by waiving this step before the money is released.
However, this by no means means that this option is available to everyone. On the contrary, a proven positive credit rating is considered a guarantee that the borrower will be able to pay the regular repayments in their full, agreed amount until the end of the loan term. If a credit check is waived, the customer must be able to provide evidence of other collateral. Reputable providers claim in this regard, for example, proof of a permanent job that has not been terminated. In addition, banks may also charge higher interest rates on a credit score-free loan.
The relevance of schufa for austrians
The aforementioned statements suggest that schufa only plays a role in the granting of credit in the german federal republic, but not in austria. This assumption is also correct, however, a similar tool is used in the alpine republic to check the creditworthiness of an applicant. Austrian debt financing is generally granted only after the relevant documentation from the credit protection association has been reviewed.
KSV is the abbreviation for "kreditschutzverband", which has the same role in this country as the "schutzgemeinschaft fur allgemeine kreditsicherung" in our northern neighbors in germany. Even in the alpine republic, a loan can only be obtained in exceptional cases without sufficient proof of creditworthiness, provided that alternative collateral – such as real estate – can be used.
Who grants loans without proof of creditworthiness?
Another name for debt financing without a credit history is "swiss credit". This name comes from the fact that lenders who do not require proof of creditworthiness on the part of the interested party are sometimes based in switzerland. So if an austrian is interested in such a loan, then it pays to search the world wide web for products without schufa, because thus he sometimes ends up on the web presences of federal providers.
However, it is also possible to obtain a loan domestically with a desired term without a proven credit history. For example, we are talking about mail order installment loans: in such a case, the lender uses the merchandise as collateral. This alternative is made possible mainly by the fact that comparatively small sums of money are involved in these types of deals and no cash payouts are made with hard cash.