Creditsin Germany

If you need extra cash for any reason, it's worth considering a loan. Poles living in Germany can also take advantage of German banks' offers in this regard. In many cases, it's even possible to complete a loan application online. This makes it much easier. However, it's worth starting by answering the most frequently asked questions about loans in Germany. At this point, we would like to emphasize that a Polish citizen can also take out a loan from a German bank, provided he or she meets all the criteria.

German banks' requirements towards borrowers

Individuals over 18 years of age and with permanent residence in Germany can apply for a loan from a German bank. Another requirement is a stable income. In this case, a potential borrower can either have a traditional employment contract or work under a contract for specific work or as a freelancer (known as a "Freiberufler"). Another option is running your own business.

That's not all. We know perfectly well that banks always check creditworthiness The person applying for a loan. It's no different when applying for a loan in Germany. In Germany, credit history is checked in the so-called Schufa. This is a register that records our financial obligations and any problems with their repayment. Every year, you can download a free extract from the Schufa about yourself. It's worth taking advantage of this opportunity when you plan to apply for a loan. loan from a German bank.

Meeting the banks' requirements does not guarantee obtaining a loan

This is crucial information for those considering applying for a loan. Generally, banks evaluate all the factors mentioned above. Those with permanent employment contracts and a good credit history have the greatest chance of receiving a loan. Freelancers, or "Freiberufler," as well as entrepreneurs, are perceived as a more risky group by lenders. Business owners must be aware that not only their income but also the length of their business's existence significantly impacts their loan eligibility. If your company has been operating in the German market for less than a year, your application will likely be rejected.

Much also depends on the applicant's professional background. Well-off individuals with high incomes and stable professional standing, such as a doctor with his or her own medical practice or a lawyer with his or her own law firm, can expect a larger loan amount than someone just starting out in the job market, an intern, or a student. This also explains why self-employed individuals typically face the possibility that the same loan security measures as those employed under an employment contract may not be sufficient.

Loans without Schufa. Are they worth it?

The financial services market also offers so-called "no-Schufa" loans, meaning they are granted without any credit checks. Loans without Schufa information ("ohne Schufa") are often offered in newspapers and online. If someone has a negative credit history and needs a cash injection, such a loan may be the only solution. However, it's generally worth relying on bank offers. loans without Schufa unfortunately, they are associated with either extremely high interest rates or significant fees - this is how the lender compensates for the risk of granting a loan to a person whose creditworthiness is not very high.

At least that's the situation in Germany, where every bank checks the credit history of potential borrowers with Schufa. It's worth noting, however, that Swiss banks, for example, don't use the information contained in this register. In practice, this means that even those with negative Schufa records have a chance of getting a loan in Switzerland.

More articles about loans in Germany.

A positive Schufa record. What's important?

If you are planning to take out a loan in Germany, make sure that your Schufa history is good. positiveThose people who used bank accounts, credit cards did they have subscription agreements Those who have used telecommunications services and have always paid their debts on time can be sure that they will be perceived as trustworthy in the eyes of potential lenders. But what about those who have no credit history? It's worth using a credit card and paying it off on time. After just a few months, this method can achieve very high credibility, according to Schufa.