A credit-free loan without upfront costs is offered by credit intermediaries. However, if you want to rule out any risk of overreaching, you can apply for your loan directly from the lender without credit bureau.
Credit bureau-free credit with no upfront costs – confidence building
The credit brokerage industry shouldn’t have to worry about demand. There have always been people in a credit crunch who need help finding a loan. Depending on the economy and the legal framework for loans, demand has been rising steadily for years. The industry has an image problem. The image can be improved somewhat by advertising “credit bureau-free credit without upfront costs”.
The advertising statement does not offer protection against “black sheep”. A website is quickly programmed. The Internet offers millions of customers in a credit crunch. The credit brokerage profession is not a protected job description, only the 34 C license holder may not have a criminal record. The media regularly uncover new scams by fraudulent credit intermediaries.
Tricks of dubious intermediaries
The temptation to work improperly for credit intermediaries is great. If a credit bureau-free loan is mediated without any upfront costs, the agency commission amounts to around USD 100. Not too big a sum, if you take a closer look at the advertising and work involved.
The preliminary costs or the prepayment are far from the only tricks with which dubious providers earn their money. The business of hoping for a loan is much more lucrative. As part of the announcement that the loan has successfully passed the preliminary check, do good business. In the hope of lending soon, insurance and savings contracts will be concluded. Many prospective creditors conclude these contracts out of “anticipatory” gratitude. The successful preliminary check is assessed as if the loan was already in the account.
The hoped-for loan can be spent appropriately with a “real” credit card, which itself also includes a credit line. The agent always collects a commission for the conclusion of the contract. If he manages to sell life insurance, the savings fund and the credit card, a thousand USD are easily earned. Most still don’t get a loan. A credit bureau-free loan with no upfront costs only earns a serious intermediary about 10 percent of what can be earned through dirty methods.
If you do not want to expose yourself to the risk of fraud, you will bear your preliminary costs yourself and save yourself the placement fee. The real upfront costs for a direct loan application are the postage, the post-ID check and a certification. All together less than 20 USD.
Credit bureau-free credit applied for directly
As far as is known, the Sigma Kreditbank AG from Liechtenstein is behind all serious loan brokerage offers for credit without credit bureau. The bank was newly founded in 2010, since the Federal Administrative Court in 2009 swept practically all credit bureau-free loan offers off the market. A legal international loan without credit bureau comes from this provider, as far as all research shows.
credit bureau-free small loans over USD 3,500 or USD 5,000 can be applied for. The target bank, which is qualified for a credit solution without credit bureau, does not hold the credit bank very much. An activity subject to social insurance is required. The employment relationship must exist for at least 12 months. The self-employed, freelancers or unemployed cannot qualify for the loan. The income from work must not be ceded or attached. The public debt register is also viewed for credit checks. There must be no entry.
If a credit bureau-free loan is applied for directly through an intermediary, but without any upfront costs, a loan of USD 3,500 costs 11.62 percent APR. Proof of this loan amount must be a net income that exceeds the garnishment limit by at least 80 USD. For a single person, USD 1,130 a month in net working income would have to be proven. The credit bank calculates an annual percentage rate of 11.61 percent for a loan of 5,000 USD. The net income to be proven for this credit request is significantly higher. The income must exceed the garnishment limit by 550. A monthly income of at least 1,600 USD is required for a single person.
Repayment – Liechtenstein loan
Both loan options are repaid in 40 equal monthly installments. For 3,500 USD, the installment amount is 105.95 USD, for 5,000 USD loan amount it is 151.35 USD per month.
A note at the end
You have now received all the data necessary to apply for a credit bureau-free loan directly. Of course, it is much more convenient to go through a reputable credit intermediary like bank credit. A credit bureau-free loan with no prepayment of credit is guaranteed to be free of charge if the loan is rejected. If it works with the loan, then the commission was well invested.