Anyone who has ever received a negative credit bureau entry, will have great problems in the future to get a loan. Even if the offense is many years ago, the problems remain. For example, a financial problem that only lasted for a short time could have negative effects years later, preventing investment or complicating personal projects such as house building.
What is the credit bureau actually?
The credit bureau is a business enterprise, whose carriers are the credit institutions. This institution stores the data of the borrowers. When a loan is received by a regular bank, it first asks the credit bureau for the creditor’s creditworthiness. If this had no problems with his loans, the credit bureau information is positive. However, once the borrower has failed to pay the installments on time or, in the opinion of credit bureau, the total amount of borrowed funds exceeds the customer’s ability to pay, a negative information is given. With a negative information, it is almost impossible for a normal bank to get a loan.
When a loan is approved by a normal bank, the contract to be signed by the borrower states in writing that the credit institution has the right to inform credit bureau of the execution of the loan. If there are any problems with the payment behavior of the customer, a negative credit bureau entry will be made. The loan amount is also communicated, so that the credit bureau can determine the total amount of the customer’s loans.
Who needs a loan without information?
Many people are of the opinion that a credit without information is needed only by defaulting debtors. Because if a previous loan has not been fully repaid or the specified frame has been exceeded, a negative credit bureau entry occurs. But this is only part of the people who need a loan without information. Many borrowers need loans that seem relatively large in comparison to their income. But for large-scale projects, such as house-building, many people are planning substantial savings in personal consumption, allowing them, despite a low income, to pay the installments of the loan on time.
Many self-employed people also need a loan that is relatively high in comparison to their previous earnings. But they use the credit for an investment, which can significantly increase the turnover of the company. However, many banks see only the information of credit bureau, according to which the loan amount exceeds the possibilities of the borrower. So the loans are often not approved and the investment can not be made.
Where to get a loan without information
Obtaining a loan without information in a conventional bank is often very difficult. The borrower must ask in many banks until the loan is approved. Often the search also remains without success. The way bank employees treat customers with negative credit bureau information is also often very uncomfortable.
A better option offers an online loan. In a short time, the customer can solicit multiple offers without facing the bank employees personally. Many online banks have specialized in credit without any information. The interest rates are also in the context of a credit without information. Many online banks offer credit without information with an APR of less than ten percent.