How to get a car title loan online?
A car title loan is a secured form of financing. A car title loan online is possible. We have summarized all the important information on how you can apply for it.
Almost nine percent of all adults in Germany have a negative Credit Bureau entry. (Source Credit Bureau). A normal bank loan seems almost unattainable for those affected. Nevertheless, most of them can come to terms with their situation. They change their purchasing behavior. You become a cash payer, save wherever possible and make ends meet with your money. Life goes on – even without a clean Credit Bureau.
However, it becomes problematic when there is an exceptionally high bill in the mailbox or the car no longer plays along. At this moment, the bad Credit Bureau becomes a real problem. Only a Credit Bureau-free car loan or a car loan despite Credit Bureau remains possible.
Difference between Credit Bureau-free credit and despite Credit Bureau
A Credit Bureau-free loan is a loan option in which Credit Bureau remains completely excluded. There is, therefore, no credit check by the Credit Bureau statement, an approved credit is not entered in the Credit Bureau. The sources of credit for Credit Bureau-free financing can be of dubious origin or come from a reputable foreign bank. A Credit Bureau-free car loan is also not secured by vehicle value or a guarantor, but only by labor income.
A loan despite Credit Bureau enables borrowing in which Credit Bureau remains fully involved. However, a negative entry does not automatically lead to the loan being rejected, as with the house bank. The portals for private lending and even credit institutions based in Germany offer themselves as reputable sources of credit. The chance with a scoring value of at least H to actually get a noteworthy car loan is not bad.
Despite Credit Bureau, credit rating bridges can also be built. It would be possible to mortgage the vehicle or to ask a guarantor for help. The possible loan amounts therefore clearly exceed the level of a Credit Bureau-free car loan.
Car loan from the foreign bank
If only a cheap used vehicle is to be purchased or a higher car repair is to be paid, then a Credit Bureau-free car loan is sufficient for financing. A loan without Credit Bureau from a foreign bank is practical without exception a standard product. The repayment period is always 40 months. You can only choose between two loan amounts. A net loan of USD 3,500 or USD 5,000 is possible.
Only one loan can be granted per applicant, a combination of both loan offers is therefore not possible. The combination of different loan providers to increase the loan amount is also excluded. As far as is known, there is only one credit bank that is allowed to grant legally Credit Bureau-free loans to borrowers residing in Germany. It is Spin Lender from Liechtenstein.
Application and loan terms
There are basically two options for applying for a loan without the Credit Bureau. The loan application can be made through a reputable credit broker. An advantage of this method arises when offers are considered despite the Credit Bureau and without Credit Bureau. If you are only looking for a Credit Bureau-free loan, you can save on the placement costs. All necessary loan applications can be downloaded directly from the Sigma Kreditbank website.
A Credit Bureau-free car loan is reserved for employees who have worked for the same employer for at least 12 months. For self-employed people only leasing free of charge is possible. The applicant must be of legal age, but may not be more than 57 years old. The verifiable network income is linked to the living situation and the loan amount. The following figures apply to a single applicant with a direct loan application.
The loan amount of 3,500 USD costs 11.62 percent effective annual interest. The net labor income required to apply must be at least USD 1,130. With 5,000 USD credit, 11.61 percent effective annual interest is calculated, the net income must reach at least 1,600 USD.
What costs are included in the figures?
The above interest rates were checked on October 18, 2013. The effective interest rates cover all credit costs for direct applications without a credit intermediary and non-cash payment. If postable payment is desired, this is possible, but it costs extra. (Post foreign fees).
If a credit broker is involved, the brokerage costs are not included. On average, credit intermediaries charge about three percent of the loan amount as an agency fee. A Credit Bureau-free car loan is never an inexpensive loan, but it is suitable for maintaining mobility.