With private credit, consumers refer to almost always negative features, although the credit protection association collects and passes on predominantly neutral data such as borrowed loans or granted credit lines. Also existing negative entries have different effects on the creditworthiness, as the private credit itself differentiates between hard and soft features.
Being unemployed is not a synonym for existing unemployment, as pensioners and students do not work at all or only on an ancillary basis, while unemployment, in addition to the absence of a job, is characterized by the ability and willingness to work.
Borrowing without work and with private credit negative entry
With only a few exceptions, only early retirement pensions can take up a loan without work, despite private credit’s negative characteristics in a Swiss bank, since the Swiss financial institutions basically count only earned income and pensions as income. Retirees retire as their customers due to the additional maximum age rule, while early retirees receive a pension that is too low for lending from Switzerland. With German financial institutions a loan without work and despite a private credit negative entry is possible, if it concerns a soft negative feature and the borrower a guarantor with good financial education and sufficient fortune.
The financial education of a guarantor is necessary because private guaranties are not established in court, if the guarantor could not recognize the consequences of his actions. Existing credit lines can continue to benefit consumers, even if they temporarily give up their jobs and forfeit a negative private credit entry. A re-examination of a once granted credit line at most financial institutions only if their holder violates the repayment agreements. This does not apply to credit facilities, the amount of which many financial institutions automatically adjust to changes in incoming payments.
Alternatives to bank loans
In the pawn shop all interested parties receive a loan without work and despite private credit negative characteristics, since the operator uses only the value and the marketability of the pledge offered as a decision criterion of a lending. Existing business relationships with mail order companies can continue to be used independently of private credit entries, since a request is usually only made when a new customer is first ordered. The consumer, however, takes care to settle all agreed rates on time, as frequent reminders lead to the rejection of future installment payment requests.
The cheapest loan without work and despite private credit offers recipients of Hartz 4 benefits to the job center. This can provide an interest-free and in small installments with the following Leistungszuschraben to be settled loan, if the customer needs the money for urgent acquisitions. Beneficiaries of other social benefits than unemployment benefit in this case turn to the relevant social welfare office. If a person takes out a loan without work and despite private credit’s negative characteristics with friends or relatives, they make a clear repayment agreement, so that the case manager does not subject them to any receiving of money gifts.