Credit with no credit rating
Terms of solvency and payment behavior
For many consumers who want to apply for a loan, the question of creditworthiness or creditworthiness is explicitly the decisive factor when it comes to getting a loan approved. There is no credit without a credit rating.
The creditworthiness is what defines the borrower in terms of solvency and payment behavior in the past. The solvency of borrowers is measured by their income, which is set in relation to existing expenditure and obligations.
This means that the income must always be significantly higher than the expenditure, so that at least the installments can be paid from it. Another and very important credit rating feature in Germany is the data stored at Credit Bureau about the person of the loan applicant. These provide the bank with information about the customer’s payment behavior in the past. The creditworthiness is therefore checked in two ways, because the banks will not grant a credit without a credit check .
Exceptions also confirm the rule for loans with no credit rating
It may well be that there are cases in which customers get a loan, although their creditworthiness is in doubt. These are often the bank’s discretionary questions. So it can be that loans without creditworthiness are granted to the borrower, because the borrower brings a guarantor whose creditworthiness is perfectly given. This may become clearer with an example. A trainee with an income of 300 USD would like to finance a used car and also has a negative entry in the Credit Bureau due to unpaid cell phone bills.If this trainee goes now and applies for a loan, he will not get a loan without a credit test. However, if he brings his father as a guarantor and he is a civil servant criminal detective or judge or university lecturer, the bank will still grant the loan without the applicant’s creditworthiness because the guarantee is good.
That means that no loan without a credit rating would not be the correct statement, but at least not as the sole borrower. The creditworthiness describes the creditworthiness and this must be given in some form if you want credit.