When the term "Schufa" appears, many people are startled. The reason is that "Schufa" is only talked about because if there are negative entries, no contracts can be signed or no purchases can be made. So some people think that the dream of the condominium as an investment has been shattered. We show here that this is not necessarily the case.
Real estate loan despite bad Schufa
The "SCHUFA" is a credit agency in Germany. The business purpose of the company is to provide credit-related information. The company receives this information about consumers from banks, building societies, mail-order companies, department stores or even telecommunications companies.
This includes, for example, information on the closing and information on the opening of current accounts, on consumer loans as well as on surety bonds. However, personal data that goes beyond address and name, such as information on assets and income or information on account balances, is not collected.
A loan without SCHUFA is a loan or credit granted without a credit check and without verification of the borrower's solvency. Such a credit without Schufa can then be obtained by accepting high interest rates for it. Therefore, such types of credit are only considered if the shortest possible terms of the loan are available, in order to then keep the interest charges as low as possible. This includes, for example, a small loan.
In the case of a large real estate loan to finance the construction of a house or for the purchase of a condominium, it does not make sense to resort to a small loan without SCHUFA information.
In such cases, a personal loan may be a possible alternative, if a bank is not willing to grant a loan. In this case, as with a real estate loan, a high SCHUFA score is required.
Likewise helps here with this real estate credit a real estate as additional security, a high own capital funds portion or a high income of the borrower.
In the meantime, there are even special providers for loans without Schufa.
What changes with a negative Schufa in the real estate loan??
If the borrower has a negative SCHUFA as well as a mediocre mortgage score, this person usually has to expect much higher construction interest rates for real estate financing. This protects the lender (banks or credit institutions) from interest losses should the loan installments no longer be paid.
Here, the lender (bank or credit institutions) may agree to a negative SCHUFA entry if 20 percent equity or more is available. Likewise, a high income can also help here.
Here, it usually depends on the individual situation of the person applying for the loan. In principle, however, a negative SCHUFA criterion is not an exclusion criterion for real estate financing. Nevertheless, it is difficult to find a financing partner here. The question of how much equity you need to buy a house does not become any easier.
The world looks different for small loans
If there is a poor credit rating, such a situation is also noticeable, for example, in a cell phone contract. Here, a low score indicates that payments have not yet been made in a reliable manner. Therefore, for example, the credit rating can determine whether a cell phone contract can be concluded or not. Therefore, the providers then demand, in order to then better secure, higher rates or prepaid. Therefore, with such a type of contract is always advisable to keep his own creditworthiness in mind. If you want to learn more about loans for smaller expenses, you can also look at the portal Minikredite.view org. There you will find further information.
Not all cooperate with the Schufa
Such loans with negative Schufa entry are also granted, for example, by foreign banks, which also do not cooperate with Schufa. However, such a bank nevertheless also checks the borrower's financial situation. But also with one or the other credit mediator there are offers for credits, which are given with negative Schufa entry.
Conclusion
As already mentioned, taking out a real estate loan with a negative Schufa criterion is basically possible. Despite this, however, it is very difficult and costly to find a financing partner for it.