Is a Swiss loan possible for the unemployed, low earners or Hartz IV recipients?
Swiss loans are granted without the Credit Bureau information otherwise required in the lending business. However, this does not mean that there is no credit check at all: instead of the credit agency, this focuses on the validated self-disclosure and information from the responsible local court in the classic way.
Loans without Credit Bureau are granted by individual banks from neighboring countries. The acceptance criteria of the institutes require a monthly, attachable net income of at least $ 1,150 (single person without maintenance obligations). This income must come from a self-employed activity – a permanent and permanent employment relationship. If this condition is not met, it is rarely possible to grant a loan.
No credit with ALG II, independence or too little income?
Lending is therefore not possible for the unemployed (regardless of whether ALG I or ALG II). Even low earners or average earners with many maintenance obligations definitely do not receive the loans. If an income that is sufficient to take into account the maintenance obligations is not achieved with an employment relationship, the loan application is not worthwhile.
Self-employed and freelancers (including doctors, architects, etc.) can apply for a loan for the self-employed.
The only exception: employees who fulfill the acceptance criteria with their main job and also run a business can receive a loan. On the other hand, employees who are paid wages subsidies by the employment office do not meet the criteria. This also applies to employees with a temporary employment contract.
“Loans without Credit Bureau for everyone” – what’s behind it?
At this point it is imperative to warn against dubious providers who promise a Swiss loan under different conditions. These providers are not reputable credit brokers – they only receive a commission if they are successfully brokered and have no business interest in applications without any prospect of success. Unfortunately, where the proverbial “ loan without Credit Bureau for unemployed ” is used, the point is often to sell useless insurance, to rip off preliminary costs or to collect address data.
If you are looking for a suitable broker on your own, you should adhere to a few basic rules: Take a close look at the provider (imprint!), Make no payments before the full payment and sign nothing other than a loan application and a brokerage agreement,
What happens if unemployment occurs during the repayment?
If there is a loss of job during the ongoing repayments, this initially has no effect on the credit: as long as no incorrect information has been provided in the application and the installments continue to be paid, the bank cannot terminate the contract. If you are in default, you will receive 1-2 reminders, as with loans from German banks. If the default persists, the bank may cancel the Swiss loan in principle: If you fall behind with at least two successive loan installments or 5% of the net loan amount, you must expect such a step. If there is a risk of shortage, you should therefore contact the bank at an early stage and ask for a deferral or a restructuring of the rates.
Loan alternatives for the unemployed and low earners
The chance of a loan is manageable for the unemployed and low-wage earners, but not necessarily zero – at least if only relatively little money is needed and the Credit Bureau information does not have any negative characteristics. In this case, point of sale loans and credit cards with a partial payment function are possible in principle.
Point-of-sale credits are concluded directly in the trade and serve e.g. B. to finance household appliances, furniture or consumer electronics. With smaller financing amounts (depending on dealer and bank involved approx. $ 300-1,500) no proof of income is required; the automated test is essentially based on the Credit Bureau score values. As a rule, you do not have to present more than a valid ID card and a valid girocard directly in the shop. For larger amounts of finance, however, proof of income is also required in retail.
Credit cards with a partial payment function give the cardholder a real credit line, which must be repaid with approximately 2-5% of the financing amount per month. Smaller credit lines down to the lower four-digit range do not require proof of income from all providers; individual banks provide credit lines in the three-digit range even for (smaller) negative Credit Bureau entries. When looking for such a card, take into account not only the possible credit line, but also debit interest, annual fees, foreign assignment fees, cash disposal fees, additional services to the card contract, etc.
Short-term loans instead of Swiss loans
The German market for “short-term loans ”, which are often referred to as microcredit and have been known as “payday loans” in Great Britain for a long time, has been growing for some years. These are relatively small loan amounts of approx. $ 100-1,000, which are repaid within 1-3 months including interest and fees.
Most of the time the repayment is due in one sum. Typical for micro-loans on the German market are debit interest rates roughly at the level of overdraft facilities and credit cards, as well as flat fees for optional additional services. This includes z. B. a shorter processing time, the payment within a few hours or the possibility to extend the repayment to 2-3 installments.
Basically, you have to expect that the providers of microcredit will also carry out a credit check with a Credit Bureau query and proof of income. However, the acceptance criteria are not the same for all providers, so depending on your individual situation, you can certainly get a loan if other banks refuse at the same time. Microcredit providers often accept lower scores than “regular” banks. In addition, due to the short terms and small loan amounts, a mini job or ALG I may be sufficient as income.
Short-term loans are a sensible alternative to the Swiss loan for the unemployed and low- wage earners if a manageable amount is only needed once and this is to be used for urgent purchases or to avoid an existential delay in payment. The effective interest rates, which are often quite high when considering the fees, are the lesser evil compared to contract terminations, return debits, etc.