Why be wary of a "credit without Schufa"

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The consumer center Brandenburg (VZB) reports numerous complaints about allegedly schufafreie credit offers, which are advertised by the provider’s carefree duo and master credit.

Promised after the conclusion of the contract a schufafreier instant loan up to a total of 6,499 euros including a Mastercard Gold. In truth, consumers only get an overpriced credit card and a hefty agency fee.

“The fine print […] mentions that the request is only forwarded to a bank for examination. The prospects of success for a loan are thus unclear, “explains Erk Schaarschmidt, financial expert at VZB, to biallo.de.

What to do if you are affected?

As a general rule, when concluding a financial product, credit seekers should always take the time to read through the general terms and conditions and to research the supplier’s references.

If you have already ordered a credit card but have not yet received it, you should not accept it by cash on delivery. If it is already too late, you have the opportunity to register by registered letter. A sample letter is available at verbraucherzentrale.de.

What about “loans without Schufa”?

The fact is:

  • In Germany, banks are required to check the creditworthiness of each applicant.
  • If a loan offer sounds too good to be true, then it probably is- Michael Tippett.

Anyone who applies for a loan cannot get past the Schufa – and if it does, it is only because another credit bureau takes over the credit check – or credit check. This is necessary because banks suffer financial damage if a borrower fails to pay monthly installments or other financial obligations.

For consumers, the Schufa is again a useful device, as the credit bureau prevents borrowers from applying for financing that can lead to the high debt due to high monthly installments.

Credit despite Schufa

When consumers are looking for a “non-Schufa credit”, they usually mean a “credit despite Schufa”, so despite moderate credit rating. Because in most cases consumers erroneously assume that their Schufa entry is bad. In the majority of cases, according to Schufa, this is a fallacy.

But even for those whose Schufa rating is not sufficient for a loan, there is a serious and secure solution. It’s called credit privilege. Borrowing money without Schufa, in this case, does not work through a bank but through one or more private individuals.

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