Banks and savings banks generally do not grant conventional installment loans to customers whose creditworthiness is rated negatively. But there are ways to get another loan without a credit check if certain conditions are met.
A security loan
Larger credit institutions offer loans that are extended against the deposit of shares or other securities. As a rule, the maximum loan limit depends on the type of security and its volatility. As a rule of thumb, a loan of up to 80 percent of the market value is possible for low-fluctuation securities.
The securities are made available to the bank as collateral so that a credit check is not necessary. If the borrower is in arrears with the installment payments, the bank has the right to sell the securities immediately and to satisfy its claims from the proceeds of the sale. The interest on this type of loan is within the normal range.
A pawn loan
Pawnbrokers exist in all major German cities. You grant a loan without a credit check against the provision of a pledge. In principle, all types of valuables, such as jewelry, watches, precious paintings or coins, can be considered as a deposit. Some pawn shops also accept cars or high-quality machines as a deposit. The pledge loan usually has a short term of a few weeks.
If the loan is repaid by the agreed date including interest, the borrower will get his deposit back. If this does not succeed, the deposited item is usually auctioned off in order to pay the remaining debt from the proceeds. In most cases, interest rates on mortgage loans are slightly higher than on conventional consumer loans.
A loan with a guarantor
Consumers who have neither securities nor other valuable pledges have the chance to get a loan without a credit check if they can provide guarantors. These are liable for the repayment of the loan in accordance with the provisions of the credit agreement with their entire assets.
Specifically, this means that the guarantor must pay for the borrower’s outstanding loan installments as soon as there are delays. As a rule, related persons, such as spouses or parents who have a good credit rating, act as guarantors. Here, too, the interest rates are higher than with ordinary installment loans.