Factors Affecting Financial Situation

March 24, 2019


Significant changes in life circumstances such as long illness, loss of employment or even a divorce usually have a significant impact on the overall financial situation of a person. The usual standard of living does not often have to be massively reduced, and reserves that have been saved up to now are used up quite quickly due to recurring financial bottlenecks. If such a special financial situation occurs again, it is often only a matter of taking out a loan.

Negative Schufa = No credit!

 Negative Schufa = No credit!

But banks set very high standards for lending. Above all, the call of creditworthiness eg. Creditworthiness at SCHUFA. If there are corresponding negative characteristics or an insufficient credit score, the bank will default as a potential lender. The reason for this is that the bank expects too high a credit risk in the case of a possible credit due to its low credit rating. So she will reject the loan application. A situation that often leads to bank customers who are rejected by the bank looking for a loan without Schufa. But is such a loan really the best solution or the way to final disaster?

The credit without Schufa as an alternative loan solution?

In general parlance, besides the general concept of ” credit without SCHUFA “, the term “Swiss credit” has firmly established itself. Synonymous with the fact that such loans are usually issued by a bank based in neighboring countries such as Switzerland, often also from Liechtenstein, without a credit check at institutions such as SCHUFA. The only requirement for Swiss loans is the legal age of the applicant and a permanent employment relationship that has existed for at least six months. But this is exactly the crux, because the lack of demand from credit bureaus and the associated higher risk can be paid to credit institutions without credit Schufa usually expensive. These loans have to be paid off with high interest rates. Not infrequently these are effective interest rates of well over ten percent per annum. An effective annual interest rate that is 2.5 to 3 times the current average interest rate for “normal” loans from classic banks.



The loan without SCHUFA can be a way out in a financial emergency, but at a much higher price. In this respect, in the case of a loan without Schufa, only the sum actually required should be included. Also, the term should be kept as short as possible, because the longer it takes to pay off a schufa-free loan, the more expensive it becomes.


Editor: Markus Gildemeister

Do not miss the chance to win € 100 and share our blog Back to the blog overview

You Might Also Like