Entries for which arrears in payment have been settled are viewed as a completed Credit Bureau entry. Such entries remain active and visible in the Credit Bureau system for some time even after the payment has been cleared. Therefore, there can be problems getting a loan with a Credit Bureau entry.
The banks conclude from the entry that the customer has an unreliable payment behavior and therefore often reject the loan application. However, a number of banks are now more tolerant of entries that involve one-off and paid arrears of less than 1,000 USD. In this case, further applications should be made to other banks if they are rejected. However, if you want to apply for a loan with a Credit Bureau entry completed, you should check a few things beforehand.
First step: free Credit Bureau self-assessment
Since 2010, every citizen in Germany has the right to a free Credit Bureau self-assessment once a year. Unfortunately, customers can only get free self-disclosure on the Credit Bureau website with five clicks, namely via “Information” and “Data overview according to § 34 Federal Data Protection Act”. The online self-disclosure is subject to a fee. The many clicks for free information are worthwhile, because here you can see whether the entry still exists. Deadlines also apply to Credit Bureau entries; they must not be saved indefinitely.
Simple entries are usually deleted after the current year, loans after three years. It may be that entries exist longer, then the deletion can be requested from Credit Bureau. After the deletion, it is no longer a problem to get the loan with a completed Credit Bureau entry. If the entry still exists, you should look for a bank or other reputable lender who will approve the loan with the Credit Bureau entry. The chances are greater in the large, well-known credit marketplaces than in a bank.
Lending is dependent on the bank
Whether a loan with a completed Credit Bureau entry that still exists is granted depends on the goodwill of the bank. If it is a one-off payment arrears that were paid a long time ago, several banks are willing to borrow. However, the general creditworthiness will be checked more thoroughly, also with the help of the scoring, on which the customer has little influence. The scoring includes numerous data collections to assess the solvency and the estimated payment behavior.
In any case, if the Credit Bureau entry is completed, the applicant will have to prepare for higher interest rates, often the maximum rate. For example, interest rates of 3.49% to 12.99% can be specified for a loan offer. Then the specific interest rate depends on the amount of the loan, term and credit rating. In that case, the applicant could land at 10% to 12.99%.
Loans on the major credit marketplaces are alternatives with a partially lower interest rate. The creditworthiness is also checked here, however, loans without Credit Bureau or credit with a completed Credit Bureau entry are often granted at better interest rates. Under no circumstances should loan seekers get involved in dubious offers with advance payments and usury interest. After completing the self-disclosure, the first applications should be made to some banks. If the interest rate is too unfavorable, the renowned credit marketplace remains online.