A loan from abroad often seems tempting. Especially if a negative Schufa entry makes your life difficult. But is such a foreign loan a real alternative to the German financial institution? Who is behind it and do they really not check your creditworthiness?? Learn more here – with tips on how to recognize black sheep!
Apply for a loan from abroad – suspiciously easy!
Once in arrears with the rent, the credit card overcharged or slipped into the overdraft facility – the result is a negative Schufa entry. If you then still [strong]urgently need an immediate loan[/strong], even if it is only a small loan, problems are pre-programmed.
Serious credit institutions in Germany namely will inquire with the Schufa. Can one be sure with you to get the money back? If the Schufa does not explicitly say "yes", then it will be tight for you. Many seek their salvation in such a situation abroad. Because there seems to be enough credit institutions that do not pay attention to the credit rating.
Credit from abroad – without a credit check?
With the Internet, it became particularly easy to get a loan abroad. Great thing, some may think. But why should a reputable foreign bank give credit to customers who are already considered uncreditworthy in Germany?? Do foreign banks have less interest in seeing their money back??
A foreign loan is a high-risk loan
If you think about it, it quickly becomes clear: Many of the offers for credit from abroad are bait offers. The banks are from countries like Liechtenstein or Switzerland. Austria, England, Spain are also common. They offer what the customer will hardly find in Germany: Credit despite bad Schufa score. Instant money without credit check. Small loan despite lack of income.
These are all bait offers, because there is nothing behind them but the attempt to get your money. Because you certainly have despite your financial distress still a few pennies that fraudsters can pull out of your pocket.
The reasons for seeking a loan from abroad are many and varied: someone does not have sufficient income, but still feels able to service his liabilities. Or you already have so many obligations in the form of installment payments that another is out of the question. It is not generally bad to look for other sources of money abroad. It only becomes fatal if you allow yourself to be ripped off because you think you have no other choice.
The path then often leads from your own bank to the internet. The disadvantage of borrowing from abroad via the Internet: You can never be sure who is acting on the other end.
Foreign credit: fraudster or not?
There are many credit institutions from abroad. It's only natural that competitors also put out feelers: after all, every bank wants to make money, too, so it looks around at markets other than its home one. But who can guarantee that the person on the other end is who you think he is?? If there is any problem with the loan from abroad, help is expensive or not possible at all. Because all too often it turns out that the supposed credit institution is not tangible for the German justice system for a good reason.
Are there really no reputable institutions for a foreign loan?
Of course, there is also serious credit from abroad. Numerous institutions in Switzerland or Liechtenstein are often willing to approve you for a loan from abroad. Whether small loan or instant loan, term three, six or more months: here you need nothing but your bank statements. So foreign lending companies also check your credit – just not in the same way they do here in Germany.
The catch: if you get a loan there, it gets really expensive. There are two main reasons for this. For one thing, students often incur high interest rates. If you're unlucky, they'll be so high that you won't be able to pay back the foreign loan. Even then, if you tighten your belt for months, you won't make the payments. The other case concerns foreign currencies: Here, the exchange rates determine the amount of your installments. If you are unlucky, you will have to pay back much more than you would with a German financial institution. Switzerland, for example, is not part of the euro area!
So there are definitely better and worse deals to borrow from abroad. Nevertheless, you should enjoy every loan from abroad with extreme caution. Fees, for example, you always pay only when the loan agreement really comes into being. Never before!
So you recognize black sheep
- Credit scammers often demand an advance payment, also called upfront costs or fees
- Instead of a loan from abroad you inadvertently apply for a so-called financial reorganization. It costs a lot of money – even without concrete consideration!
- Rip-off with 0900 number: Afterwards you have also no foreign credit, but still more debts.
Protect yourself from fraud – tips on foreign credit
If a foreign loan really can't be avoided, check exactly what you're signing up for. Read all contracts carefully before signing! This is the only way to avoid a rude awakening later on. Also, find out exactly who you are dealing with. You can learn more from the general terms and conditions and from the imprint. Not only does it say whether the company has an address at all in the conventional sense, or whether it is a so-called letterbox company.
Often it also clearly states whether the company arranges a loan from abroad or not. If not, hands off, because then you will not get a loan from abroad! Likewise, any type of upfront cost should generally be rejected. You do not have to pay until the contract is signed. And the fees are part of the rates at reputable institutions. If you have to pay strikingly high interest rates on the loan from abroad, something is wrong.
Foreign credit: What is a credit broker?
In addition to the possibility of getting a loan directly from the banks, there are also the credit intermediaries. They will also arrange a loan for you – but they don't grant it themselves, they just arrange it. It is clear that fees will be charged for this. In return, they also take care of the formalities. For instance, they submit the required documentation to the bank. The advantage for you: you do not have to go to the bank yourself.
But that's about all. You can certainly scan your documents yourself and send them online! Thus, the services of credit intermediaries are disproportionately expensive, especially if the term of your foreign loan is short over a few months. In most cases, they are also simply superfluous.
Are loans therefore generally bad?
No. Loans from reputable institutions are actually very practical: they help to bridge financial bottlenecks. The speed with which you get your desired loan does not necessarily say anything about the financial institution. A mini-loan, for example, many reputable direct banks grant today already within a few days, often even on the same day, if your conditions are right.
To protect their customers, German credit institutions are also subject to strict rules. Of course, irregularities may still occur at your expense. However, this is extremely unlikely – unlike a bank that, on closer inspection, only has a mailbox in Liechtenstein, for example.
Credit from abroad – you have these alternatives:
Therefore, for your own safety, always prefer a credit institution based in Germany. Only in this way you can be sure that German laws are applicable in case of problems. By the way, if you have an inadequate credit rating, you can improve it. You yourself are responsible for your creditworthiness, as this also depends on your purchasing behavior. The following are a few tips on how you can improve your credit rating. Although this takes longer than applying for a loan abroad. But you protect yourself from fraud!
This is what you can do for your credit rating:
- Pay bills on time
- Avoid unnecessary accounts and credit cards
- rarely or never use your overdraft facility
If none of this helps, check the data that Schufa collects about you. Are they still current at all? If not, demand their deletion!
Behind a foreign loan is often only a bait offer!
A loan from abroad sounds good at first Instant loan, no credit check, these are common promises. Anyone who does not want to fall into a trap here must be very careful. The chance of encountering fraudsters is very high. So instead of helping you, a foreign loan with the wrong company can rather increase your hardship.
Therefore, pay close attention to the conditions that the institution offers you. Do not under any circumstances pay upfront costs. However, it is even safer to keep your hands off such institutions altogether. If something goes wrong, the German judicial system is not in a position to help you. A safe alternative is to go to a credit institution based in Germany.