In order to check the creditworthiness of your customers, Credit Bureau information is obtained before a loan is granted. If the bank classifies this negatively, the loan is rejected. This can also happen if there is a good income, the donor is thus fully responding to Credit Bureau’s information.
Regarding Credit Bureau, it must be said that this institution protects its contractual partners against loan seekers who have not properly met their financial obligations in the past. This can be unpaid bills from a mail order business or an unredeemed loan or even an oath of disclosure. The information provided by Credit Bureau is binding for German banks. A negative Credit Bureau loan with a surety can be an alternative to a normal loan.
Even if the loan seeker is of the opinion that a loan with a negative Credit Bureau with guarantor will give him the desired amount of credit, he is wrong. The size of a loan without Credit Bureau amounts to 3,500 USD. If you now need a larger sum, for example to buy a car, a loan with a negative Credit Bureau with a surety can be the better solution. However, the guarantor is subject to the same conditions as the borrower.
He has to be solvent, ie he should have a sufficient and regular income, a permanent job is also an advantage. A very important point is that a guarantor must have a positive Credit Bureau query. In addition, the guarantor should be economically able to pay the installments due in the event of a default, without severely reducing his standard of living.
The loan seeker can find a solvent guarantor in his relatives or acquaintances. If this is found, the importance of a guarantee should be made clear to it. It may happen that he does not get a loan even with a credit request, unless he provides a guarantor himself. The banks regard a guarantee as a contingent obligation. This means that a guarantor does not just guarantee, but has to vouch for his entire assets. A negative Credit Bureau loan with a guarantor is only a good solution if the guarantor is sufficiently creditworthy.