Unreliable loans – Identification and avoidance of doubtful credit offers



Identifying dubious lenders is relatively easy. Because no reputable bank lends without getting collateral beforehand. Anyone who grants a loan to the unemployed and first wants money in advance is absolutely unreliable. You also have to make sure that you don’t fall in love with a dubious provider. First, you should take a close look at the required interest rate for each offer that includes a loan.

Careful, loan shark! 

Careful, loan shark! 

The Credit Sharks target advertising materials such as? Credits without Credit Bureau? to the target group of consumers in an economic dilemma. Doubtful credit offers can be recognized by extremely high interest rates, start-up costs, expensive additional agreements and a lack of a BaFin license from the supplier. There are several ways to increase your creditworthiness and thus also the chance to get loans from well-known credit institutions.

Anyone who needs a loan in a financial squeeze should definitely look for serious offers. So-called loan sharks often advertise with “Loans without Credit Bureau! “But often such promises hide disproportionately expensive loans with rampant interest rates or terrible upfront costs. “In addition to fast and reputable online banks, there are also bonuses sharks that advertise”. You will learn how to recognize a loan shark and what options you have if you want to raise funds in an economically difficult situation.

Before granting a loan, credit institutions must check the solvency of their customers. As a rule, the creditworthiness check is carried out by asking the Federal Financial Supervisory Authority (Credit Bureau) or another credit institution. Credit Bureau’s information is intended to ensure that a borrower is also economically capable of paying the loan installments in the long term. With the negative contact point of the Hungarian Sparkasse, it is difficult to get loans from well-known credit institutions.

Therefore, consumers with low creditworthiness are at particular risk of falling into the trap of a loan shark. These are susceptible to the advertising messages from dubious credit intermediaries who promise “loans without creditworthiness” or “instant loans” in which “creditworthiness does not matter”. Therefore, you should pay special attention to loan offers that are specifically aimed at debtors with low creditworthiness.

Numerous loan sharks lure their victims into loans with rampant interest rates. Anyone who grants consumers loans at exorbitant interest rates and thus exploits their economic burdens is at risk of criminal law. However, local legislation applies to domestic loans. Lenders in Germany require the approval of Bafa (Bafin). Credit institutions with a BAfine credit rating may not issue loans without prior information from Credit Bureau or a comparable credit check.

As a rule, credit sharks are not even the lender, but only act as an intermediary. The Federal Financial Supervisory Authority maintains a company database on its website, in which all approved institutions are located. If your credit provider is not listed there, be careful. Doubtful credit brokers often impose on their customers all advisory services that have to be paid in cash or cash on delivery before the loan is granted.

With some loan sharks, this supposed consultation also takes place over the phone via more expensive service phone numbers. If you have to make an upfront payment and the loan is tied to any upfront costs, it’s a dubious bid. Some credit institutions also make the conclusion of further contracts a precondition. Only those who take out expensive death insurance or a contract with a building society savers at the same time receive a loan contract.

This leads to an increase in borrowing costs

This leads to an increase in borrowing costs

Attention: If the conclusion of additional contracts is a prerequisite for the loan contract, the fees must be included in the effective interest rate of the loan. Of course, not all credit institutions operate with dubious procedures. Then they arrange a loan from a Swiss house bank, for example.

The credit institutions of the Alpine region do not cooperate with Credit Bureau for the credit check. If e.g. B. a meanwhile closed dunning system further increases the attractiveness of the local community, a credit institution can be a way to get a fee despite the booking. Even after the loan has been granted, the intermediaries generally do not receive their remuneration from you, but from the house bank from which you signed the loan agreement.

It is best to keep your hands away from questionable offers – even and especially in a financial emergency. Because besides higher expenses, you don’t have to deal with a loan shark. You have to pay higher expenses, fees and sums in advance and then either get no credit at all or a completely inflated one that worsens your financial situation.

Even if your application has been rejected, you often still have the chance to get a loan from a reputable house bank. Request free disclosure from the relevant authorities. A negative Credit Bureau entry can significantly reduce your chances of getting an installment loan. It is required to remedy material defects. The current salary is one of the essential conditions for the granting of credit.

Applicants on probation or with a temporary job often do not get a loan. Anyone who can overcome the time until then should wait to reapply for a loan until they have survived the probation period or until their employment has expired. With a second applicant, you can increase your credit chances – provided the other party has a regular salary and good creditworthiness.

The two borrowers are jointly responsible for the lending business

The two borrowers are jointly responsible for the lending business

From a bank’s point of view, this reduces the risk of interest rate changes that the credit volume is not sufficient. Even if your commercial bank rejected your loan application, another commercial bank may decide otherwise. Although all well-known lenders check the creditworthiness, the requirements for granting credit vary in detail.

Some credit institutions only grant loans at a fixed interest rate and can then exclude weaker, but sufficiently creditworthy customers. In the case of a house bank with a credit-related interest margin, these customers can nevertheless make a serious takeover offer. To improve your credit opportunities, you should therefore be offered by as many credit institutions as possible, not just one.

A credit request to the credit institutions has no negative impact on your Credit Bureau value. In practice, those who, despite all their efforts, can no longer get credit from well-known credit institutions due to their poor creditworthiness, have considerable economic disadvantages. Under no circumstances should loan sharks hit people who are already heavily in debt.

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