A loan despite unemployment and negative Credit Bureau is only available in exceptional cases. Under no circumstances should the prospective customer contact a German bank, savings bank or Volksbank. There are clear regulations on who can be granted a loan and under what conditions. Unemployed people with negative Credit Bureau information unfortunately do not fall into this category.
Requirements for lending
In Germany, a loan is only granted if the applicant has a sufficiently high income and positive Credit Bureau information. Those who are unemployed and want to take out a loan only have a realistic chance if they can find a co-applicant or a guarantor who fulfills all the necessary requirements. Unemployment benefit is paid on a regular basis, but is also not considered to be loan security if it is so high that it exceeds the statutory garnishment exemption limit for private individuals.
There is a very simple reason for this. Social benefits are non-attachable and therefore cannot serve as security for the loan despite unemployment and negative Credit Bureau. A negative Credit Bureau information is another obstacle to lending. It is a sign that the customer has not been able to meet his financial obligations in the past and has not responded to the warning letters from the creditors or to court requests for payment.
Even if the reasons for a negative Credit Bureau information no longer apply and all open invoice amounts have been paid, the customer is still far from being creditworthy. Negative Credit Bureau entries are only deleted after three years.
Anyone looking for a foreign loan also has little chance as an unemployed person. Most foreign lenders do not provide Credit Bureau information, but they place greater value on the fact that the customer is an employee or civil servant, receives a fixed salary and can pay his monthly loan installments regularly. In the case of the unemployed, this requirement either does not exist or is only inadequate.
A good way to get a loan despite unemployment and negative Credit Bureau would be a personal loan. Here the award criteria and the other credit conditions can be regulated individually and are not tied to any requirements.
Even a private individual will only be granted a loan despite unemployment and negative Credit Bureau if they can trust the borrower. Every unemployed person who absolutely needs a loan should ask himself critically whether he really has the prerequisites to repay the loan properly despite the unemployment and negative Credit Bureau within the agreed framework.