Loans despite bad Schufa: A solution from Switzerland
A negative Schufa entry can make access to financial products such as loans considerably more difficult. In Germany, credit decisions are almost always made on the basis of Schufa data. As soon as there is a negative entry – be it due to an unpaid bill, a Debt Collection Case or other payment problems – the chances of a loan being approved decrease.
One way to get a loan despite a bad Schufa rating is the Swiss loan. This is granted by banks outside Germany, particularly in Switzerland or Liechtenstein, and is therefore independent of Schufa. This means that no Schufa query is made and the loan is not entered into Schufa. This can be an option for people with a negative Schufa rating or ongoing debt collection proceedings to get an urgently needed loan.
How do Swiss loans work?
Swiss loans are special financial products that are usually offered for smaller amounts – often between 3,000 and 7,500 euros. The main advantage of these loans is that they are granted without a Schufa check. This means that even people with poor credit ratings have a chance of receiving financing. Instead, Swiss banks focus on other criteria, in particular the applicant’s income.
In order to receive a Swiss loan, a regular income is usually the most important requirement. There is no Schufa query and the loan is not recorded in the Schufa. This means that the loan remains invisible to other banks, which is a decisive advantage for borrowers who do not want to further worsen their credit rating with German banks. In particular, people with ongoing debt collection proceedings or negative entries in the Schufa can receive financial support without having to fear further negative effects on their credit rating.
However, borrowers should note that interest rates on Swiss loans are often higher than on conventional loans. This is because banks take a higher risk if they do not carry out a Schufa check. Nevertheless, a Swiss loan can be a sensible solution if other options are not available.
Debt restructuring despite bad Schufa
Debt restructuring means that existing loans or other liabilities are replaced by a new loan. The aim is to improve the conditions, be it through lower interest rates or a longer term in order to reduce the monthly burden.
Refinancing despite Schufa and debt collection – is that possible? Even if a bad Schufa is present, debt restructuring is not out of the question. Particularly in cases where there are several loans, overdrafts or outstanding bills, debt restructuring can be useful in order to consolidate the financial situation. Many of those affected who already have debt collection cases or dunning proceedings ongoing could reduce their monthly burden through debt restructuring and thus achieve financial relief.
When does debt restructuring make sense?
Debt restructuring can be particularly useful if the interest burden on existing loans is very high or if several different loans have to be serviced. In such cases, a single loan with better conditions can help to reduce the financial burden. Even if there is already a negative Schufa entry, it should be checked whether the financial pressure can be reduced by debt restructuring.
It is important that the debt restructuring is completed under more favorable conditions than the existing liabilities. Before a decision is made, the current interest rates on the loans should be compared with the interest rates on the new loan. Any fees that could be incurred if existing loans are repaid early must also be included in the calculation. Some banks charge a so-called prepayment penalty if a loan is repaid early. These costs should be taken into account to ensure that the debt restructuring actually leads to financial relief.
