Advantages of financing through loans
Loans without a Credit Bureau query have been advertised more and more frequently in the past few years and are intended primarily to convince debtors who have already learned about the advantages of financing through loans. Anyone who thinks that they have already sufficiently demonstrated their creditworthiness by taking out a loan should be surprised by most of the assessments of banks and service providers today.
Most credit institutions have long been applying much stricter criteria for lending than they did a few years ago, so that an excellent credit rating in the past no longer means anything today. And especially those who are looking for loans without a Credit Bureau query and therefore want to conceal the possibly negative preload from a current loan should be able to come up with other guarantees in order to have any hope of being granted the loan at all.
Missing Credit Bureau query and its consequences
What distinguishes loans without a Credit Bureau query and how do they differ from other loans? First of all, it should hardly be possible to take out such loans at an ordinary local bank or savings bank, since the creditworthiness of the debtors plays an important role here and an existing Credit Bureau entry makes a new loan virtually impossible. At this point, many debtors only have the option of cooperating with rather unknown financial service providers, who usually only offer their services via the Internet and, accordingly, can only be reached by phone or email.
Although these promise fast and uncomplicated loans without any Credit Bureau query or the provision of financial security, the conditions of these loan contracts are designed in such a way that most debtors are completely overwhelmed with their fulfillment after only a few months. Terrifyingly high repayment rates make the repayment phase much more difficult than with a conventional lender, so that after a while many debtors only have private bankruptcy. In a condition that must be avoided in any case, especially if another loan has to be repaid.