Small credit without Credit BureauOn December 20, 2019 by Cameron Floyd
A small loan without Credit Bureau is possible, but is usually associated with an additional guarantor, which must guarantee the debt of the borrower. Foreign banks, preferably the Swiss banks, often also offer Credit Bureau-free loans that can be processed entirely without a guarantee.
How much is small loan?
Here, however, a regular income of at least average, or even better: above average, level is necessary in order to meet the requirements of the bank and to put the Credit Bureau rating into perspective. A small loan is not subject to a clear definition, in general one speaks of a maximum amount of 5,000 USD, whereby some banks also consider 10,000 USD loans as small loans, while others set the maximum limit at 2,000 USD.
So you should be informed in advance what exactly the term small loan means for the credit institution and what requirements are necessary to actually receive it. A small loan without Credit Bureau is possible in most cases if there is at least a regular income and a guarantor can be used. If the amount of the loan is very low, the guarantor may be waived, but a regular income is always necessary, since this is used to repay the loan.
Loans with a bad Credit Bureau rating
A small loan without Credit Bureau is always sought if the borrower is already aware that his Credit Bureau rating is rather bad. A bad rating in the Credit Bureau arises when debts are not paid off on time or the borrower generally has high liabilities (often long-term) in his name. Conversely, the low Credit Bureau rating also reduces the borrower’s creditworthiness, which is why the borrower is forced to look for a small loan without a Credit Bureau from a reputable lender.
The Credit Bureau-free loans generally have slightly lower interest rates than comparable installment loans. This is due to the fact that the bank wants to better secure the loan. By not checking the Credit Bureau, the bank automatically increases the risk of default, which is compensated for by the increased interest rate. Small loans are often also available outside the banks, for example from friends or relatives. As a rule, no interest accrues here.