Taking out a loan always requires a good Credit Bureau. In any case, if the loan is to be taken out in Germany and does not come from a private person. The banks and savings banks in Germany see Credit Bureau as an important criterion when determining creditworthiness, which in turn must be so good that a loan can be approved.
But what to do if a loan refusal flutters into the house despite a good Credit Bureau when you are actually sure that your credit rating is sufficient to take out a loan?
What are the reasons for a loan rejection despite good credit?
A loan refusal despite a well-positioned Credit Bureau can have different reasons. The most common reason, however, is the fact that income and loan expectations don’t match. Either because the income is generally too low to even be able to take out a loan. Or because the income in combination with the Credit Bureau is not sufficient as security for the loan.
Because particularly large amounts of credit require protection that income alone cannot generate. A second borrower, guarantor or material collateral or residual debt insurance or risk insurance may then be necessary. Anyone who cannot do this will most likely experience a loan refusal despite good credit. And this can be very painful. Especially when the loan is urgently needed.
However, too many loan requests to other banks already existing liabilities or too crude ideas regarding the repayment can lead to a rejection. Likewise, the fact that the borrower is not of the correct age for borrowing, wants the wrong type of loan, has no permanent residence in Germany or has no current account in Germany.
Even an incomprehensible purpose can lead to a loan refusal. Even if the Credit Bureau is consistently positive. So there are many reasons that can prevent supposedly easy borrowing and quickly get the borrower in trouble.
How can a loan refusal be avoided despite a good Credit Bureau?
If you want to avoid a loan refusal despite having a good Credit Bureau, you have to provide sufficient collateral that can secure the loan in addition to the Credit Bureau. A second solvent borrower is always very good. In the case of higher loan amounts, life insurance or residual debt insurance should always be taken out. Even if both hedges cost additional money.
On top of that, it should always be ensured that the framework conditions for borrowing fit. For example, the income must be fixed, the age acceptable and the place of permanent residence within Germany.
Furthermore, the bank should not be given any strange uses. If you have something exotic with the money from the loan, you should keep this to yourself and rely on an installment loan. This is because it is not earmarked and the bank does not have to know what the money is to be used for.