A Credit Bureau-free instant loan is a special form of loan, in which the loan application is immediately checked by the credit institution and the applicant can be certain as quickly as possible whether the loan has been granted or whether it has been rejected. Another special feature of this type of instant loan is that the loan amount is usually requested by express transfer, which means that it usually reaches the borrower within 24 hours after the loan agreement has been signed by both parties.
Furthermore, a Credit Bureau-free instant loan, as the name suggests, is exempt from a Credit Bureau check. The Credit Bureau serves companies and banks as a collection for the provision of business information. In the course of a loan application, banks therefore query the applicant’s Credit Bureau in order to learn more about their liabilities and the current and past debt situation.
Borrowers on a bad condition
If the borrower’s Credit Bureau is of a negative nature, i.e. already preloaded, the borrower receives a worse ranking internally, which in turn leads to a reduced credit rating. Accordingly, it is usually advisable for borrowers if they do not ask Credit Bureau directly and look for a lender who also accepts this fact.
Swiss banks are considered the best-known candidates for a Credit Bureau-free loan because there is usually no query here. In Germany, too, some banks refrain from checking the entry at Credit Bureau.
A negative Credit Bureau entry does not have to mean rejection
Banks that issue loans without a Credit Bureau check can be found online with the help of loan comparators. To do this, the applicant only has to specify the necessary preferences on the computer and then only the lenders who actually voluntarily waive a check of Credit Bureau are issued.
However, this does not automatically mean that no more collateral is required, because the decision not to use the Credit Bureau query naturally reduces the information available to a bank. As a result, borrowers must have at least a regular income, in the best case at least average, in order to get the loan approved.
The financial situation is of course largely shaped by the borrower’s income, which is why it is still the biggest factor in assessing creditworthiness. If applicants have a fixed employment contract that also promises a high income, a negative Credit Bureau entry can also be quickly overlooked.
However, it is different for applicants who have no income and at the same time have a negative Credit Bureau. Even if the Credit Bureau is not consulted, they will be rejected. A Credit Bureau-free instant loan is then only possible via a guarantee.