Increase Credit bureau-free credit.
A loan is Credit bureau-free if the lender neither makes an inquiry to Credit bureau nor registers the loan there. In Germany, mail order companies often do not involve Credit bureau in granting installment payments to existing customers, but a loan with cash payment without Credit bureau can only be obtained from the pawnbroker or from your own employer, so that Credit bureau-free loans are applied for in Switzerland.
A credit increase consists of increasing an already approved and partially repaid loan. Compared to the conclusion of a new loan contract with another provider, the increase offers the advantage of granting all repayments to a creditor. In addition, a previously agreed repayment of the existing loan represents a positive internal credit rating.
Top up loan or take out new loan?
If customers have already taken out a loan in Switzerland, it will be easier for them to top up their existing Credit bureau-free loan than to conclude a new loan contract without Credit bureau. The reason is that the borrowing was not sent to the German Credit bureau, but to the federal USD, and the Best banks usually only approve a new loan without Credit bureau after the old liability has been repaid.
How does the increase work?
Best banks usually allow an existing loan without Credit bureau to be increased as soon as the amount still to be repaid is less than 1200 USD. The maximum loan amount granted for most Best money houses is 3500 USD, so that another 2300 USD can be borrowed at this time. Since the bank has its own experience with a customer who wants to top up his Credit bureau-free loan, a higher total amount is often possible.
The prerequisite is, of course, that there has been no delay in payment of the loan repayment during the previous loan term. Furthermore, Best banks only approve increases if the income at the time of the extended loan application continues to reach the required minimum level. Some Best banks do not take into account the age limit of fifty-five or fifty-eight years for the initial loan application.
With the new lending, the previous loan is combined to form a total loan, the interest rate of which is generally the level of the debit interest on the redemption date. Of course, a Credit bureau request will still not be made when topping up a Credit bureau-free loan, especially since the non-membership of the bank in the German credit protection association has not changed.
However, the Best bank reports the credit increase as well as the initial borrowing to the federal USD. When borrowers top up their existing Credit bureau-free loan, they agree on a new loan term that relates to the total loan. Best banks offer different loan terms.
A short term leads to quick debt relief, while longer loan terms are associated with lower monthly loan rates and thus give the borrower more financial scope.