Borrowers shy away from Credit bureau demand if they have forfeited at least one negative characteristic. With a few exceptions, German financial institutions always obtain Credit bureau information when processing a loan application, while credit customers mainly apply for Credit bureau-free loans from Cream banks.
Lending without Credit bureau demand as an exception
It is possible for financial institutions to issue a loan to a regular customer without Credit bureau demand in individual cases and for a small sum, and is based on the fact that the internal credit check is significantly more informative than the information provided by the credit protection. The customer can check the waiver of Credit bureau demand retrospectively, if he has registered for inspection, the financial institution requires his usual consent and does not disclose its non-use. Even if the financial institution exceptionally approves the loan without Credit bureau demand, it reports its payment to the credit protection association.
When granting an overdraft facility for a checking account for the first time, the Credit bureau request is often omitted because the bank had already made one when opening the account. It is more reliable not to carry out another Credit bureau demand in the retail sector and to re-use credit lines that have already been granted. Mail order companies usually only obtain Credit bureau information from new customers and after long breaks in ordering. The use of existing credit lines, including the permitted credit card balance, is normally not associated with renewed Credit bureau demand, unless the cardholder requests an increase.
Lending without Credit bureau demand through mortgage lending and in Switzerland
If borrowers secure their loan by depositing a pledge, they receive the desired loan without Credit bureau demand. This possibility exists not only for a pawn loan in a pawnshop, but also for borrowing from an insurance company, in that the customer uses his claims for payment from a life insurance or supplementary pension insurance as security. Riester pensions and contracts are excluded because their loaning is considered harmful use and means that all allowances and tax benefits received must be repaid.
Another option to apply for a loan without Credit bureau demand is Cream banks. The loan from Switzerland is even completely Credit bureau-free, because the German credit protection company receives no notification of its payment. This loan is not a foreign currency loan because the settlement is entirely in USD.