Why is a loan without private credit more expensive?


If a “normal” financing through German banks is not feasible because of “negative private credit”, then the credit without private credit becomes the focus.

Some interested parties would like to accept this loan, but hesitate because of the increased interest rate. They ask us why non-scholar loans are more expensive than other loans. That is why we explain the background today for all potential creditors.

Normally, the search for the desired loan at one of our more than 20 bank partners leads to success. If a permanent employment contract exists without a time limit and the income is sufficient, we often get a commitment from the lender very quickly. This applies expressly even if one or the other negative feature is stored in the private credit.

This means that even if our own bank and / or other large banks have already rejected financing with reference to the private credit score, we can often offer a loan – namely a regular loan (with private credit query and private credit entry). , It is thus a loan “despite” private credit, which is awarded depending on the credit rating at attractive interest rates from 3.90% APR. The loan amount is basically freely selectable up to a maximum of 100,000 euros for installment loans. Even at runtime, you can enjoy maximum flexibility with 12 to 120 months.

If the private credit information is too “bad”

If there are too many negative features at private credit, our bank partners also decide against financing. But that does not mean that our credit professionals stop working and bring you the “bad news”. Rather, they give gas once again and try it with “Plan B”: with a loan without private credit.

The key advantage here is that the lender does not catch up with private credit information and thus does not use the stored data for its credit decision. The deciding factor is the fixed income as an employee of at least € 1,300 net per month.

Credit without private credit: the pros and cons

Credit without private credit: the pros and cons

The biggest advantage of the non-private credit credit is obvious: Such financing is feasible even if all other options are already exhausted.

Disadvantage: As a borrower, you can not decide on the financing amount yourself, but have “only” the choice between three different loan amounts: 3,500 euros, 5,000 and 7,500 euros. Duration and rate are also given. And the same goes for the interest rate, where the individual credit rating plays virtually no role. Interest rates are much higher in comparison to “normal” loans and this point is not negotiable.

The bank praises the higher risk

The credit check is also always a risk consideration for a bank: it has to make a judgment about the likelihood that the borrower will repay the loan properly. The higher this probability is (and the lower the default risk), the lower the interest rate offered will be. Conversely, the bank works with a risk premium if the creditworthiness of the prospect is worse.

When lending without a private credit request, the bank voluntarily waives part of the information about the prospective borrower that they might actually use for the credit check. On average, this increases the risk of lending, and this fact is reflected in the terms. In addition, the default risk is actually higher with rather weak credit ratings, so there is also objectively a bigger risk for the bank. That is why the interest rates in the field of private creditfreien financing must logically be higher than conventional loans.

Interest rates are not encouraging for borrowers – but at least they receive fresh money that they would not have received from other banks. And if the financial situation improves in the future, the loan without private credit can be prematurely redeemed or replaced by another, cheaper financing.