Schufa-free credit in Germany

Is it easy to get a loan without Schufa?

This question is asked by many people who unfortunately have negative entries in the register. It's worth noting that even those who have just settled in Germany and don't yet have any Schufa entries are treated as having negative entries. As it turns out, it's no surprise that so many people are interested in loans without a Schufa.

Can I get a loan without Schufa if I run a "Gewerbe"?

Many people decide to do business in Germany. Sometimes, entrepreneurs are also interested in a loan. Unfortunately, if your Schufa records are negative, you won't be able to count on it. loan from a German bank This applies to both those working under an employment contract and those running their own business in Germany. In this case, it's also worth considering banks offering loans without Schufa. If you need an urgent cash injection for your business, this is a very good solution. However, you should be aware that the interest rate will be relatively high.

How much can a loan be without a Schufa check?

It's worth realizing that loans without Schufa are quite risky for the institutions that grant them. Therefore, the amounts of such loans are rather limited. You certainly can't count on receiving funds to finance the purchase of a property or a car without Schufa. The amounts involved are relatively small, and they are more suitable for financing typical consumer expenses. You can apply for Schufa-free loan up to 5,000 EuroHowever, much depends on the specific institution, as sometimes this limit is lower.

Interest rates on loans without Schufa

Interest rates are one of the factors that have the greatest impact on the final cost of a loan. But what about interest rates for loans without a Schufa check? As you might imagine, such rates are relatively high. This shouldn't be surprising. Let's not forget that granting a loan without checking the applicant's credit history carries a high risk. Lending institutions offering these products attempt to minimize their risk by offering relatively high interest rates.

Therefore, if you don't have a negative credit history and need extra cash, opt for a standard loan from a German bank. Its cost will simply be lower.

Sometimes, additional funds are desperately needed. In the event of unexpected expenses, non-Schufa loans can prove very helpful. However, due to the size restrictions and relatively high interest rates, these types of loans aren't the most favorable option on the German financial market. It's worth improving your Schufa credit score (for those without a credit history in the German registry) or waiting until the statute of limitations on negative entries expires. It's probably no wonder that regular bank loans are much more advantageous.