Taking out a loan abroad: advantages and disadvantages

Who tries in vain to take out a loan at the house bank or other local credit providers or is dissatisfied with the interest rates, can switch to a loan abroad. The interest rates are lower in some countries than in the home country, the conditions of the loan agreement in advance, however, just as carefully as here, because especially borrowers with poor credit rating are often the target of dubious lenders.

If you do decide to take out a loan in germany, you should take a look here:
to our independent loan comparison

How do customers get a loan abroad?

Loans abroad are usually mediated through specialized institutions, which often have their headquarters in switzerland, which is why a foreign loan is often referred to as a "foreign loan". "Swiss credit".

Unlike in germany, where the rule is: no creditworthiness = no credit, no guarantors, collateral or a credit report from schufa are necessary for the granting of credit. By transfer from abroad or also postbar, that is against signature directly from the letter carrier, the borrower receives the money.

Loans abroad are particularly frequently used to avoid a schufa query. On the subject of schufa, you will find a detailed report in our article on the subject of schufa entry with credit delete.

This is mainly due to the fact that the credit institutions are now extremely strict with regard to schufa entries in germany. Even an unpaid cell phone bill can destroy creditworthiness in this country. However, taking out a loan abroad is by no means without risk! Interest rate and currency fluctuations make this type of loan much more unpredictable than conventional loans from a bank in germany.

At the same time, however, this is also the greatest advantage of a foreign loan – due to the different interest rates in a country, the loan interest rates can also be much more favorable.

When choosing a suitable credit institution, credit seekers should therefore demonstrate a healthy skepticism, because especially behind very full-bodied promises often hide dubious brokers who quickly lure people in financial distress into the debt trap.

It is also important to note: A loan abroad is almost always final maturity. This means that they are not paid in installments, but at the end of the term in one fell swoop. So here you should really be sure that you can afford this final payment.

Interesting: it is not switzerland that grants the most loans worldwide, but china. An investigation of the IFW kief brought this out. According to this, the total debt of other countries amounted to about 5 trillion US dollars, which would correspond to about 5 percent of global economic output. Since half of the debt is non-transparent, there are major risks for financial stability. The middle kingdom is primarily a creditor of developing and emerging countries.

Is it risky for a german to take out a loan from abroad??

The biggest risk with a loan from abroad is, of course, to get to the wrong provider and you should already consider whether you first try to find someone in germany who manages to successfully arrange a loan.

Recommendation: if it is only a small loan amount, we recommend the provider minikredit.De. Here loans are granted very uncomplicated and fast.

Really necessary is the admission of a credit from abroad only if the personal schufa looks really so badly that no german bank is willing to give a credit more. In this situation, only a guarantor or a bank abroad can help, which completely waives the schufa information.

It is also important here to inform yourself about which foreign institutions maintain contact with schufa and which do not, otherwise you make the trouble in the end for nothing. In the same way, you should first clarify which banks exactly – for example in switzerland – grant loans to german customers, because these are not all institutions.

Experience with loans abroad

Whether loans from abroad are really particularly risky or not. Whether a loan abroad is serious, can not be answered across the board in the end. You can find different statements about this from customers and people who have experience with the whole thing:

"Foreign loans without schufa are already a good thing, but with me it took over a week until I had the money! So if you need the money now very urgently, you should rather borrow it from your friends or from your parents."
– F.Guenther

"A foreign loan without schufa is already OK but if you need money now very urgently it is faster in the country in any case."
– D.Hofer

"My sister has already twice taken advantage of foreign loans without schufa, and it went very quickly and easily, even online."
– C.Winter

Mostly you can recognize black sheep already by the submission of their offer. Particularly conspicuously they advertise what is being sought. "Credit without schufa" or "credit despite negative entry" are just two of the slogans that should make you skeptical.

Is a loan from abroad serious?

This question can not be answered in general, it depends on the way to the loan. As already mentioned, there are in the area quite a lot of dubious providers, who help in part to get credit abroad, but charge considerable fees for it. In the worst case, you make an advance payment and then nothing more happens.

A loan from abroad serious or. It is by no means impossible to obtain a loan in a reputable way, however, and it can also have its advantages in terms of lower interest rates, etc. Have. You should first inform yourself very well – as with all credit transactions – and preferably work together with a local bank.

Serious loans through domestic banks

In order to get good conditions, the loan agreement can also be concluded through mediation of domestic banks abroad.

Due to the different legal situations in different countries, customers cannot conclude a loan directly and are dependent on the help of the domestic bank. The loans are then usually concluded in the foreign currency and charged with the more favorable interest rate (if any). In most cases, loans abroad are then also secured for some risks, such as the fluctuation of the currency.

Advantages and requirements for a foreign loan

The biggest advantage of a loan abroad, in addition to the possibly lower interest rates, is the waiver of information from schufa. Even after successful granting of credit, there is no schufa entry, as is always the case with loans taken in germany.

This is simply because switzerland, for example, does not have an institution like schufa at all. Therefore, the foreign lenders also do not act completely without security.

The most important requirements for borrowing abroad are:

  • Full eligibility
  • Proof of income (i.D.R. The last two income statements or pension statements are sufficient)

Alternatives to foreign loans

Before you really consider taking out a loan abroad, you should look for all possible alternatives.

The best and safest way would be to improve one's own creditworthiness instead of going the foreign route. Regularly checking your credit rating can be a great help in this regard. Once a year you can request a free report from schufa about your solvency.

Section 34 of the federal data protection act forms the basis for this option. The report informs you about your score and what could affect it negatively.

You could do this to improve your credit rating in the long term:

  • Have incorrect or outdated data in your schufa file corrected
  • Cancel unnecessary current accounts and credit cards
  • Avoid frequent changes of current account
  • Settle overdrafts quickly and completely
  • Repay loans continuously and on time
  • Bills always on time

As already mentioned, these are long-term measures. If the money is needed in the medium or even short term, improving your credit rating is not an option. Then even those german providers can be an option, for which a negative schufa is not yet a K.O.-criterion is. One of them is credimaxx. A provider that is also generally considered trustworthy.

The same applies to maxda. Again, a not flawless schufa is not a mandatory exclusion criterion and the conditions of the provider are generally good.