Getting loans for the unemployed without Credit bureau and guarantors is not easy. Unemployed people who have negative Credit bureau entries and would like to receive a loan should at least be able to provide a surety. Otherwise your loan application would have to be rejected.
Requirements for lending
In most cases, the banks insist that the future borrower can provide positive Credit bureau information, a secure income or other collateral. For this reason, not only unemployed or Social Welfare recipients, but also freelancers or the self-employed find it very difficult to find a suitable lender in Germany or in other European countries. The same applies to students, housewives, trainees or other groups of people who do not have a fixed or insufficiently high income.
In Germany, it is also imperative that the Credit bureau information is in order. Even minor negative entries can mean that it is no longer possible to grant loans. Abroad, Credit bureau information is dispensed with, but the greater importance is attached to a fixed and secure income. Here unemployed or Social Welfare recipients generally have bad cards.
Apply for an interest-free loan
Even if it is very difficult to find suitable loans for the unemployed without Credit bureau and guarantors, nobody should give up prematurely. There are various private credit intermediaries that specialize in particularly difficult cases and have good contacts with various domestic or foreign banks. However, you should never collect any fees in advance or make unrealistic promises. Should this happen, it would be a sure sign that the credit intermediary in question is dubious.
Loans for the unemployed without Credit bureau and guarantors are often granted in a private group. If a relative or acquaintance of the unemployed agrees to provide appropriate support here, the unemployed should resort to it. A personal loan has the great advantage that the lending and repayment modalities can be regulated individually and are not tied to any requirements. This is a very significant difference from most domestic or foreign bank loans.
For Social Welfare recipients, there is still another way to get loans for the unemployed without Credit bureau and guarantors. If necessary, you could contact your responsible service manager in the job center and apply for an interest-free loan there. However, there must be good reasons for this. Anyone who just wants to fulfill their consumption needs or go on vacation will not receive a loan from the job center. A broken washing machine, a broken TV or a broken fridge is a good reason to get an interest-free loan from the job center. It may only be used for the intended purpose and must be paid back to the job center in installments.