While Germans tremble before the Schufa for credit inquiries, Austrian credit applicants are afraid of the data of the KSV – the credit protection association of 1870, the equivalent of the Schufa in Germany. The Creditor Protection Association, based in Vienna, specializes in credit checks, monitoring (credit monitoring) collection services and insolvency representation in Austria. Austrian providers obtain their information about loan applicants from KSV or similar institutions to check the creditworthiness of the applicant.
Negative KSV entries can hinder the granting of a loan and increase the interest on the loan
It is not easy to get a loan if you have a poor credit rating.
Individuals who are in debt due to previous payment difficulties (e.g.B. Cell phone contracts, bankruptcy, etc.) could not pay their bills, are listed in the credit protection association or similar files – and have difficulties to get a credit in the present due to this data. Even if the entries are already years ago and in the meantime more than enough money is available.
You do not know your KSV status? According to the Data Protection Act, every Austrian citizen has the right once a year to obtain a type of financial self-disclosure from the credit agencies – this is free of charge. Contact the consumer protection organization if the data is incorrect (which can happen more often) and therefore financing is denied.
Where can I get an instant loan without a credit check?
Small amounts to bridge financial bottlenecks
If you are already sure that a credit report would be negative, there is the possibility to apply for a quick loan without a credit check. Some direct banks offer loans without taking a close look at the customers' "payment history. In this case, however, borrowers have to expect significantly higher interest rates than with "conventional" loans – simply because the risk of non-payment for a bank is significantly increased if no credit check is carried out (risk interest). For this reason, the conditions for instant loans without a credit check are significantly worse.
Tips – How to get a loan more easily
The bank's interest is in the collateral for the loan. Who pays the installments if the borrower is unable to do so?? That's why some direct banks also offer loans without a credit check especially if the borrower-to-be can show other collateral instead of a credit check.
- Provide a guarantor
Offer the lending institution to include a guarantor in the contract. This must have a regular income (at least 1.000 – 1.500 euros). By the way, retirees also qualify as guarantors.
- House resp. Mortgage real estate
Anyone who owns a house or property can offer it to the credit institution for mortgaging. Also as a result, a direct bank is more likely to approve a loan without a credit check – and the interest rates for the loan are thus at an acceptable level.
- Apply for a loan at a credit institution with headquarters abroad
Banks today are multinational corporations that often offer services in one country, but are present there at most with branches. However, the company is located abroad. A loan or. an offer without credit investigation receive residents also with banks of the European foreign country – because these do not co-operate with the Austrian credit protection federation. You can get more information about this on the websites of the respective banks. But be careful: check carefully which provider you entrust yourself to!