Take out a loan abroad: Advantages and disadvantages Anyone who tries in vain to take out a loan at the house bank or other local credit providers, or is dissatisfied with the interest rates,
can switch to a loan abroad. The interest rates in some countries are lower than in the home country, but the terms of the loan agreement should be checked just as carefully in advance as here, because borrowers with poor credit ratings are often the target of dubious lenders.
Who decides nevertheless for a credit in the inland, should look around once here:
To our independent loan comparison
How do customers get a loan abroad?
Loans abroad are usually mediated by specialized institutions, which often have their headquarters in Switzerland, therefore one speaks with a foreign credit often also of the so-called "foreign credit".
Unlike in Germany, where the rule is: no credit = no credit, no guarantors, collateral or information from the Schufa are necessary for the granting of credit. The borrower receives the money by bank transfer from abroad or by post, i.e. against signature directly from the letter carrier.
Particularly often loans abroad are used, to avoid a Schufa query. On the subject of Schufa, you will find a detailed report in our article on the subject of Schufa entry with delete credit.
This is mainly due to the fact that the credit institutions are now extremely strict with regard to Schufa entries in Germany. Even an unpaid cell phone bill in this country can destroy the credit rating. However Taking out a loan abroad is by no means without risk! Interest rate and currency fluctuations make this type of loan much more unpredictable than conventional loans from a bank in Germany.
At the same time, however, this is also the biggest advantage of a foreign loan – due to the different interest rates in one country, the loan rates can also be much more favorable.
When choosing a suitable credit institution, credit seekers should therefore show a healthy skepticism, because especially behind very full-bodied promises often hide dubious intermediaries, which quickly lure people in financial distress into the debt trap.
Important to note is in addition: A credit abroad is almost always final maturity. That is, they are not paid in installments, but at the end of the term in one fell swoop. So you should be really sure here, That it is possible to make this final payment.
Interesting: It is not Switzerland that grants the most loans worldwide, but China. This is what an investigation by I Kief revealed. According to this, the total debt of other countries amounted to about 5 trillion US dollars, which would correspond to about 5 percent of the global economic output. Since half of the debt iance is non-transparent, there are major risks for financial stability. The Middle Kingdom is mainly a creditor of developing and emerging countries.
Is it risky as a German to take out a loan from abroad?
The biggest risk with a loan from abroad is, of course, to get to the wrong provider and you should already consider whether you first try to find someone in Germany who manages to successfully arrange a loan.
RecommendationIf it is only a small amount of credit, we recommend the provider Minikredit.de. Here loans are granted very uncomplicated and fast.
Really necessary is to take out a loan from abroad only if the personal Schufa really looks so bad that no German bank is willing to give a loan. In this situation, only a guarantor or a bank abroad can help, which completely waives the Schufa information.
It is also important to inform yourself about, which foreign institutions maintain contact with Schufa and which not, otherwise you make the trouble at the end for nothing. In the same way, you should first clarify which banks exactly – for example in Switzerland – grant loans to German customers, because these are not all institutions.
Experience with loans abroad
Whether loans from abroad are really particularly risky or not?. Whether a loan abroad is serious, can not be answered across the board in the end. Different statements can be found from customers and people who have experience with the whole thing:
"Foreign loans without Schufa are a good thing, but in my case it took over a week until I had the money! So if you need the money now quite urgently, you should rather borrow it from your friends or from your parents." – F.Gunther
"A foreign loan without Schufa is OK, but if you need money very urgently, it is definitely faster at home." – D.Hofer
"My sister has already used foreign loans without Schufa twice, and it was quite quick and easy, even online." – C.Winter
Most of the time you can recognize black sheep already by the way their offer is submitted. Particularly conspicuously they advertise what is wanted. "Credit without Schufa" or "credit despite negative entry" are just two of the slogans that should make you skeptical.
Is a loan from abroad serious?
As I said, this question cannot be answered in general terms, it all depends on the way to the credit. As already mentioned, there are many dubious providers in the field, who help to get credit abroad, but charge considerable fees for it. In the worst case one makes an advance payment. Nothing happens after that.
A Credit from abroad reputable or. But getting ways is by no means impossible. Can also have its advantages through lower interest rates, etc. have. One should be here just first inform very well – as with all credit transactions – and it is best to work with a local bank.
Reputable loans through domestic banks
In order to get good conditions, the credit contract can be concluded also by mediation of domestic banks abroad.
Due to the different legal situations in different countries, customers cannot take out a loan directly and have to rely on the help of their home bank. The credits are then usually concluded in the foreign currency and with the (if available) charged a more favorable interest rate. In most cases, loans abroad are then also covered for some risks, such as the fluctuation of the currency.
Advantages and requirements for a foreign loan
The biggest advantage of a loan abroad, besides the possibly lower interest rates is the Waiver of information from Schufa. Even after a successful loan, there is no Schufa entry, as is always the case with loans taken out in Germany.
This is simply because Switzerland, for example, does not have an institution like Schufa at all. Foreign lenders therefore do not act entirely without safeguards.
The Most Important Requirements When Borrowing Abroad are:
– Full eligibility – proof of income (i.d.R. the last two income statements or pension certificates are sufficient)
Alternatives to foreign credit
Before you really consider taking out a loan abroad, you should check for all possible
Alternatives look around.
The best and safest would be to improve your own credit score instead of going the foreign route. Regularly checking your creditworthiness can be a great help in this regard. Once a year you can ask Schufa for a free information about your solvency.
The basis for this possibility is §34 of the Federal Data Protection Act. The information informs you about your score. What could negatively influence this.
Here's what you could do to improve your credit rating in the long term:
– have incorrect or outdated data in your Schufa file corrected – cancel unnecessary current accounts and credit cards – avoid frequent changes of current account – settle overdraft facilities quickly and completely – repay loans continuously and on time – always pay bills on time
As already mentioned, these are long-term measures. If the money is needed in the medium or even short term, improving the credit rating is not an option. Then even those German providers may be an option for whom a negative Schufa is not yet a c.O.-Criterion is. One of them is CrediMaxx. A provider that is also generally considered trustworthy.