Car loan without credit bureau – is there?
The credit bureau is an integral part of almost every creditworthiness check in the context of a loan application. It is intended to determine whether obligations from current credit transactions already exist. Of course, this also applies to the financing of new and used cars. So if a car loan without credit bureau is required, alternatives to bank may be required.
Requirements for a car loan without credit bureau
There are several ways and institutions to finance a vehicle. In addition to the normal commercial bank, there are also numerous offers from automotive banks. But there are other ways to raise the necessary capital for a new car.
credit bureau reviews generally take place at banks. Although this does not necessarily lead to a cancellation, it can lead to worse conditions. In general, the higher the regular income, the lower the significance of the credit bureau inquiry. The status of existing loans may also be relevant. If the current loan commitments are already close to completion or a replacement, a credit bureauüberprüfung is no longer something that is likely to jeopardize the renewed borrowing. But these conditions are not always given.
Especially when a new vehicle is needed urgently, but the own credit rating leaves something to be desired, a car loan without credit bureau can represent the last salvation. At least, however, the borrower should be aware in advance or have specific ideas about how the second, additional lending service can be provided on a regular basis. If this does not provide a satisfactory answer, borrowing should be better avoided unless a new or existing job is at stake. In such a case you would then practically use the car loan to earn a better credit rating.
With the down payment for car loan without credit bureau
A variant, with high probability to get a car loan without credit bureau, can be found in the deposit. This severely reduces the risk for the lender, who additionally makes use of the retention of title. The amount of such a deposit is according to experience between 30% and 40% of the purchase price. It can be financed in several ways, ideally by selling the old vehicle. In order to do so, the dealer or the corresponding Autobank should be consulted, since this type of financing is most likely here.
If a particularly high down payment is due or if the car is to be financed without a car bank, assets are needed that can be used. For example, anyone who has a life insurance policy can borrow their surrender value as a loan from the insurance company. This is also referred to as a policy loan and is often cheaper for the borrower than normal installment loans. Because the insurance company enters with the lending only a low risk, since the insured already has a claim to the required capital. The prerequisite for this is a sufficiently long maturity, so that the current surrender value is high enough for the required financing.
Another advantage of not completing the car loan without credit bureau at a car bank, is found in the ability to achieve cash discounts at the dealer. These can even outweigh all or part of the interest rate advantage that results for automobile banks. It is therefore also a question of conscientious calculation, for which one should take enough time as an applicant. Because the most expensive loans are usually the ones that are completed in a hurry. In addition to the above options, personal loans should also be considered. Unlike a normal car loan without credit bureau, it is here private individuals who lend a loan. Business start-ups in particular can profit here if they have an innovative business idea, but have so far only accepted rejections from banks.