Topping up Credit Bureau-free loan.

The credit without Credit Bureau is available from “private” only from very dubious sources. All agreements are closed privately, the legality is not checked by supervisory bodies like the banking supervision. No one can answer whether someone can increase such a Credit Bureau-free loan. Only the private contract sets the rules.

The second option, which is also offered by reputable credit brokers, comes from a foreign bank. As far as is known, only one credit institution is currently permitted to grant loans without Credit Bureau to people residing in Germany. (As of October 17, 2013).

Who is increasing tobacco-free financing?

Who is increasing tobacco-free financing?

Unfortunately, credit agreements that were concluded with Good Finance before April 2009 cannot be increased. Best Lender was once the leading provider of Credit Bureau-free loans. However, after more than six years of litigation, the company had to stop operating in Germany. According to the judgment of the Federal Administrative Court (Az. 8 C 2.09), Best Lender may no longer conclude new loan agreements in Germany. The credit increase is therefore excluded.

 It is only since the end of 2010 that a foreign bank has been active on the German market for Credit Bureau-free loans. It is Lite Bank based in Liechtenstein. In principle, increasing a Credit Bureau-free loan is just as possible as applying for the loan for the first time. Basically, only two different loan amounts are granted. Credit option one comprises a loan amount of USD 3,500. Variant two allows 5,000 USD in credit. You can only top up to the maximum loan amount.

How does the increase go?

The borrower makes a new loan application. Single people currently have to prove a net work income of 1,130 USD (3,500 USD credit). With a credit of 5,000 USD, the lowest income threshold is 1,600 USD of monthly net income.

The borrower asks to redeem the old loan early. Without prepayment penalty, which would otherwise have to be paid in the event of early redemption, the “old loan” is replaced by the new loan. The difference between the loan amount and the transfer fee is then transferred or paid out by post if desired. If postable payment is desired, additional fees are to be expected.

Conditions for the credit increase without Credit Bureau

Conditions for the credit increase without Credit Bureau

The top-up loan without Credit Bureau is treated like a new loan. Its term is 40 months. An effective annual interest rate of 11.62 percent is currently calculated for a 3,500 USD loan. For the loan amount of 5,000 USD net loan, it is 11.61 percent effective interest.

If you want to increase your Credit Bureau-free credit, you can apply for this through a credit intermediary such as Maxda or directly. If the help of an intermediary is used, additional fees can be expected.

Revolving loan – when should you reach for it?

What is a revolving loan?

What is a revolving loan?

It is very common that we need quick cash as a result of emergencies. Unfortunately, obtaining a bank loan is not a smooth way out and, contrary to appearances, requires a lot of effort. Also, not everyone has creditworthiness, which is necessary for the bank to provide us with financial assistance. An alternative to bank loans is a revolving loan. What is this?

Revolving loan – definition

Revolving loan - definition

A revolving loan is simply a financial product that is based on a simple principle. The client receives from the non-bank company a specific amount of money that can be disposed of within the time specified in the contract. The amount the loan will take depends on, among others on your creditworthiness. The most important issue that characterizes this type of loan is its revolving line.

What does a revolving loan mean and how is it different from a loan?

What does a revolving loan mean and how is it different from a loan?

A revolving loan differs in many respects from bank loans and borrowings, which we have to pay back as part of monthly installments. This method of financial assistance does not involve installments that we have to pay regularly, or a specific amount that is determined, e.g. when we take a cash loan.

It is not granted for specific purposes, e.g. purchase of a car, as in the case of a car loan or mortgage, i.e. for the purchase of an apartment. A revolving loan is most often because of unexpected expenses.

We can compare a revolving loan to the credit limits offered by banks. These types of financing products do not differ in many respects. The most important feature that distinguishes them is the fact that the revolving loan is granted by non-bank companies and credit limits by banks.

Revolving loan versus credit limit – differences

Revolving loan versus credit limit - differences

  • The credit limit is available from the bank account level. It is therefore necessary to set up a personal account to be able to manage your funds. A revolving loan does not require a bank account.
  • A revolving loan is granted by registering a special profile on the loan company’s website. The payment of funds does not require any formalities. Every time you want to borrow money, all you have to do is log in to your own account on the website and make a few clicks.
  • The applicant verification process is not as restrictive as in the case of a bank credit line.

Online revolving loans – is it possible?

Online revolving loans can be submitted by completing the form on the website. We do not have to worry about completing formalities for hours and visiting offices to obtain a mass of certificates.

Non-bank companies do not attach so much importance to checking the credibility of the applicant as banks. This means that we can get a revolving loan in a very short time. This is good news for people who need express cash.

The revolving online loan is granted based on the account set up on the website, thanks to which we will be able to submit cash withdrawal instructions. It also allows you to track the amount of debt. Registering an account on the lender’s website is simple and no one is problematic and filling out the application takes only a few minutes.

Parabanks require proof of identity. However, you do not have to worry about data theft because nowadays, the applicants resign from sending scans of ID cards. The verification process is usually carried out by making a transfer for a symbolic amount of penny or 10 grosze.

After creating the account, we can order the withdrawal of funds, but first we must sign a contract that the parabank sends us by e-mail. If we accept its terms (it can also be done electronically), we can use a revolving loan.

Renewable loan – pros and cons

Advantages

Disadvantages

Minimal formalities.

The need for sound management of funds. It often happens that customers fall into increasing debt.

Quick implementation process.

In the case of large debts, the case may go to debt collection.

Using the loan several times.

Easy Accessibility.

Everything is done without leaving home.

Opportunity to read the contract in detail.

Available from 18 years old.

A revolving loan, like any other type of financial liability, should be handled sensibly and the decision to withdraw funds must always be carefully considered.

Non-bank revolving loans – who can benefit?

Non-bank revolving loans - who can benefit?

Non-bank revolving loans are granted to any adult. In some cases, the person requesting such assistance must be at least 21 years old. It depends on the particular offer of the parabank.

It is also necessary to have Polish citizenship, a valid ID card and residence in the country. Our creditworthiness is also significant here, because on its basis loan companies set a limit on the funds we can have.

What does a revolving loan agreement look like?

A revolving loan is subject to the same rules as a bank loan. First of all, you should familiarize yourself with the specifics of the operation of this financial product in order to be able to manage your money sensibly. It is therefore recommended to read all the terms of the contract, which we receive by email. It will also be necessary to obtain information on the total cost of the loan.