Get car loan without Schufa: It works, but borrowers have to be very careful.
The content of this article:
E.In car loan without Schufa is a loan to finance a vehicle without the bank checking your creditworthiness with the help of the Schufa or without negative Schufa entries for the granting of the loan. However: Obtaining such a car loan from a German bank is very difficult. Because German lenders are legally obliged to check the creditworthiness of potential borrowers. They usually do this with the help of credit agencies such as the Schufa.
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Car loan without Schufa: you have to pay attention to this!
According to Civil Code 505a, German banks are obliged to check the creditworthiness of their customers when granting loans in order to protect themselves against payment default and to protect the customer from becoming overindebted. For this they do not necessarily have to consult the Schufa, but many banks do exactly that: They use the data of the largest German credit agency to determine the creditworthiness of the customers. If your house bank rejects your loan application because of negative Schufa entries, you should obtain offers from other banks. It’s quick and easy with the Credit comparison
by COMPUTER BILD. Important: First, only submit a request for terms and conditions instead of a loan request. The latter can worsen your credit rating with the Schufa even further without you having even taken out a loan.
In addition to Schufa information, banks also use other features to determine creditworthiness. These are for example the following:
- Is there a steady and secure income?
- Is there a permanent position outside of the probationary period that lasts for at least six months?
- Are there any other current loans?
- Can you bring a second borrower or a sponsor on board to provide additional security?
The last-mentioned point in particular can give you a car loan despite negative credit bureau. Prerequisite: The other borrower or sponsor has a good credit rating and is willing to take the risk. For example, it is no longer so easy for a guarantor to take out a loan himself if he is already with your loan. He should be aware of that.
Swiss loan: take out a car loan abroad without private credit
Because of the strict legislation in this country, the attempt to get a car loan without Schufa often leads abroad. Foreign banks are usually not interested in the German Schufa, they determine the creditworthiness in other ways or secure themselves differently. But you should pay even more attention to the seriousness of a provider. Banks in Liechtenstein and Switzerland in particular are considered trustworthy and reliable. That is why one often speaks of a “Swiss loan” in the case of a loan despite a negative Schufa.
Features and characteristics of a Swiss loan:
- You have to prove a regular income with which you can pay the installments.
- You have to agree that the lender may pound the income in an emergency.
- They often have to live with high to very high interest rates, which one is no longer used to in times of low interest rates.
- Often only low loan amounts up to a maximum of 7,500 euros are possible (financing a new car is hardly possible with this).
- Term and rates are usually fixed, and you have little room for negotiation.
Pitfalls in the car loan without Schufa
A car loan without Schufa is usually an emergency solution. If you cannot get a regular loan from a German bank because of poor creditworthiness, there is usually a good reason. Perhaps you should first correct your overall financial situation before tying yourself to another block in the form of a car loan. In addition, it is difficult for laypeople to recognize which car loan providers are trustworthy without Schufa. In this area in particular, there are a number of dubious and even fraudulent intermediaries. The following criteria can help with the assessment.
How to recognize dubious lenders:
- The broker charges fees even for the loan comparison or the examination of the application.
- The dispatch of documents costs extra.
- Consultation visits and calls to the hotline are chargeable.
- The loan is tied to additional, chargeable products (insolvency advice, insurance, memberships, etc.)
- The interest rates are suspiciously low and no proof of income is required.
- The provider’s website has no imprint or an incomplete imprint.
- The provider has only existed for a short time and / or is not entered in the commercial register.
Above all, the attempt to make additional money with services and products that are free of charge from trustworthy providers indicates dubious practices. Carefully read the fine print in such contracts for car loans without private credit. Such credit institutions hide traps and unexpected additional costs precisely there because borrowers overlook them so easily.
There are often better alternatives to finance a vehicle than taking out a car loan without Schufa
The Schufa holds records of the payment behaviour of german Banks and institutions. As expats are new to germany, the Schufa cannot calculate credit worthiness for them. Unfortunately, this implies poor credit worthiness for expats. Only if you live in Germany for some time and always pay your bills, your creditworthiness will start improving.
One solution to accelarete this process, is to take out a car loan without Schufa to finance your new vehicle. A “loan without Schufa
” (Kredit ohne Schufa
) is granted without checking the Schufa records.
In former times, the Schufa-free loan often came from Fidium Finanz AG in Switzerland. Many years after the Fidium Finanz shut its doors, the loan without Schufa is still called “Swiss Loan”.
In the case of a Swiss loan, the bank is satisfied with a simple questionnaire and the applicant’s proof of income. But for expats, such a loan is also not very easy to get. Usually employment records of one year or more have to be presented to the bank. And there’s more strings attached: a „Swiss loan“ is much more expensive, than a regular loan from a german bank.
Fortunately, it is usually not necessary to switch to the more expensive swiss loan without Schufa, if you want to finance your car despite bad credit.
There are also German banks, which grant a loan despite a negative Schufa entry
or bad credit. Therefore, consumers should not be intimidated by poor credit scores . Often their credit worthiness is still good enough to finance a new car despite “bad credit scores”.
Alternatives to classic car loans
You do not necessarily have to contact a bank or an official credit institution for a car loan without Schufa. There are attractive alternatives that work naturally without Schufa information:
Borrowing the money from friends or family is probably the easiest and least bureaucratic alternative. A friend who knows you and thinks you can be trusted will hardly insist on Schufa information. The repayment modalities such as the amount of the installments and terms can be flexibly negotiated or even changed later. But one thing should be clear to you: When it comes to money, friendships and family ties can break. So think about it carefully.
This is also a form of personal loan, only you don’t know the lender personally. Special platforms on the net offer a meeting point for lenders and borrowers and can do without Schufa. The interest rates are usually a bit higher, and the platform operators often receive a commission. You have to calculate whether a peer-to-peer loan (P2P loan) is worth the bottom line.
Leasing a vehicle and possibly taking it over for a final payment after the leasing contract has expired is also an alternative to a loan. This type of car purchase only offers real advantages for the self-employed and companies that can claim the leasing installments for tax purposes.
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What is special about a car loan?
A special car loan offers advantages and disadvantages compared to a general installment loan:
- The car loan is earmarked, so it can actually only be used to buy a car or perhaps a motorcycle, mobile home or the like.
- Because of the specific nature of the loan, a car loan is often available at lower interest rates than a normal installment loan, which you can use for all expenses.
- Some car dealers offer the right car loan from their house bank when buying. However, it can be cheaper to take out the loan from an independent bank and then pay the car dealer in cash in order to receive a corresponding discount.