In Germany it is actually made easy for consumers to get a loan. But in practice, it’s not as simple as many imagine. Banks have to adhere to guidelines and want to keep the credit default risk as low as possible.
To do this, they first check the salary and the Credit Bureau for each loan application.If the Credit Bureau has negative entries for the customer, the creditworthiness decreases. For some people, this often means that they cannot apply for a loan in this country. However, there is still a chance of getting a loan abroad.
Which loan is granted abroad?
If you want to get a loan abroad, you often choose a Swiss loan. The Swiss loan with no upfront costs is primarily chosen by customers who have a poor credit rating or who do not want to burden their Credit Bureau. A Swiss loan with no upfront costs is never entered in a Credit Bureau and so the customer is later able to take out another loan in Germany if the creditworthiness has increased. In addition, a Swiss bank will not check a Credit Bureau, so that there can be no default at least here.
What requirements do customers have to meet?
In order to apply for a Swiss loan without any upfront costs, the customer has to meet certain requirements. So it is particularly important to have a fixed income. However, this must not come from a mini job or self-employment. The salary must always be so high that it is above the garnishment allowance.
With this, banks want to make sure that if there is a loan default, they still get the loan amount by issuing a garnishment. The copy of the ID card is used to check whether the customer is of legal age, because only then can a loan be applied for. Anyone who can meet these requirements of the bank can count on a Swiss loan without any upfront costs.