Unemployment and a negative entry in the Credit bureau (protection association for general credit protection) reduce the chance of a loan. The unemployed customer is just as dependent on a loan as a normal earner. As a credit agency for its contractual partners such as banks, mail order companies or other service providers, Credit bureau provides information about the customer’s creditworthiness.
An entry in the Credit bureau is made, for example, if installment loan installments are not paid. In addition, a customer should be protected against over-indebtedness, because if there is a personal bankruptcy, banks or other creditors are left behind.
Loans without Credit bureau entry for the unemployed are still possible
When it comes to lending, monthly income comes first. Since the unemployment benefit can only be taken as security by the unemployment agency for an unemployed person, many banks refuse a loan. Unemployment benefit is often so scarce that it is not even sufficient for everyday needs.
Banks are raising concerns that monthly installments can no longer be paid. Turning on a credit broker over the Internet can get a loan without Credit bureau entry for the unemployed. The loans come from foreign banks. But especially for foreign banks, the monthly receipt of regular income is of great importance, since proof of income is often the only security. Therefore, there are restrictions here too.
Banks show positive aspects of existing collateral
If collateral can be shown, the aspect of credit brokerage looks different. For example, if the unemployed can provide collateral for a debt-free property, there are some providers who promise a loan. However, the borrower must expect that if the installments are not paid, the bank will use the property. A life insurance can also be offered as security. With this background, a loan without Credit bureau entry for unemployed can be arranged.
Guarantee or money from private to private
There is still a perspective on loan brokering and that is a solvent guarantor. With his good name and creditworthiness in a lending transaction, he guarantees a loan without Credit bureau entry for the unemployed. However, it must be clear to the guarantor that if the loan amount is not paid, he will be held responsible. In addition to these aspects of credit brokerage, there are portals on the Internet where private providers lend money.
Collateral is also a matter of course here, because without an income no provider will lend money. It must also be mentioned that the unemployment benefit from the employment agency also means a regular income. Some unemployed people have more unemployment benefits than normal earnings. Many banks also use this to grant a loan without a Credit bureau entry to the unemployed.