Credit Bureau collects information about all consumers living in Germany and makes it available to its contractual partners. According to its self-image, it not only protects credit institutions and retailers from default, but also protects consumers from over-indebtedness by making a Credit Bureau request before each loan.
In practice, however, negative features, which have long been forfeited, make borrowing more difficult, even if the popular assumption that any negative Credit Bureau entry would completely exclude creditworthiness is not correct. Loans from Liechtenstein or Switzerland are an alternative to German loans with Credit Bureau.
Who are Liechtenstein loans suitable for?
A Credit Bureau-free loan from Liechtenstein is suitable for consumers who do not receive a loan in Germany due to the existing Credit Bureau entries. These are not necessarily negative features, but too many existing loans can lead to a refusal to grant credit. It is disadvantageous here that Credit Bureau has no information about the actual utilization of the credit lines granted.
These are available to consumers in the form of the overdraft facility, the credit line of credit cards and possibly an on-demand loan. Loans actually taken out may not be kept secret from a Liechtenstein bank, even if it is not informed by third parties about existing liabilities due to the Credit Bureau request that cannot be carried out.
A Credit Bureau-free loan from Liechtenstein also makes sense if the borrower does not want to worsen his score at Credit Bureau with a view to a possible later loan. The most common reason for applying for a loan in Liechtenstein is the negative characteristics found in the Credit Bureau information.
Who receives the loan from Liechtenstein?
A Credit Bureau-free loan from Liechtenstein is paid to employees and civil servants whose monthly income is sufficient to repay the loan and is above the garnishment-free limit. Protection against attachment of an account no longer exists on the normal current account, but the Liechtensteiner Bank assumes that consumers will convert their existing current account into a P account in the event of payment difficulties.
When calculating the net income, Liechtenstein banks do not take child benefit and any non-taxable payments from the employer into account. The amount of the Liechtenstein loan without Credit Bureau depends on the net income up to 3500 or up to 5000 dollars, the recipient can be 18 to 57 years old.
A Credit Bureau-free loan from Liechtenstein is transferred to the borrower’s current account in dollars so that there is no exchange rate risk for the Swiss franc. There are also no additional bank charges for the loan repayment, since the Liechtenstein bank, which provides non-Credit Bureau-free loans, maintains a German bank account. The interest rate for a Credit Bureau-free loan from Liechtenstein is higher than that of a standard loan applied for in Germany, but lower than the average borrowing rate for the overdraft facility.