There is a distinction between a credit without a credit check and one with a limited credit rating. A loan without a credit check means that the creditworthiness of the person seeking a loan is in no way assessed prior to the granting of the loan.
The lender thus has no insight into the income and assets of the borrower, which are usually important basis for decision making before entering into the credit relationship, because they guarantee a certain degree of security. In the same way, the lender retains past payment difficulties, any over-indebtedness and / or insolvency of the contracting party.
A loan without a credit check therefore leaves the lender unclear whether or to what extent the borrower will be able to settle his borrowings in accordance with the contract. From the point of view of the lender, therefore, credit without a credit check represents a major factor of uncertainty and a high default risk.
Money lending in the family and friends circle
It is unlikely that a rational investor will be prepared to take that risk by granting credit to a third party borrower without a credit check. The likelihood of loss seems too high compared to the opportunity to generate attractive returns on this investment. Therefore, a credit without a credit check is limited to the family and acquaintances of the potential borrower.
Due to the close personal relationship and the often already long-lasting kinship or friendship relationship, the assessment of the creditworthiness of the borrower fades into the background. A credit without a credit check is possible in a personal environment, because there is usually the necessary confidence in the good behavior of the borrower. In addition, the social component is added. This promotes the willingness of the private lender, his family member or good friend to help with a credit without credit check in the financial distress.
Personal loans and loans without credit bureau
An advertised credit without a credit check, there is a risk that it is a dubious offer. A complete abandonment of any kind of credit rating by the lender is unlikely and questionable. However, there is a realistic chance of getting a reputable credit with limited credit rating.
This group includes personal loans and non-credit bureau loans, which, in contrast to loans without a credit check, still rates the creditworthiness of a personal loan, albeit in a mitigated manner. Although private investors usually refrain from obtaining a credit rating from the German credit agency credit bureau. As a rule, however, they insist on evidence of the income situation of the borrower in order to be able to classify the solvency of the debtor. Such loan projects between individuals can be put into action through specialized personal loan portals or advertising markets.
The situation is similar for loans without credit bureau. In this case, the request for credit bureau information is omitted. As a condition for granting the sum of money, however, a regulated income is required, which must be proven by appropriate salary statements. Collateral or guarantor may be agreed as compensation for the bad creditworthiness of the debtor. The simplified and uncomplicated processing of loans without credit bureau can be expressed in higher interest rates.
Conclusion in terms of credit without credit check
Thus, neither a loan without credit bureau nor a personal loan concluded between third party creditors is creditworthiness. These two forms of credit are not entirely creditworthy, but allow a contract to be made after the borrower has a limited credit check. Borrowing from family members and acquaintances is the only real way to get credit without a credit check.