2024-10-08 07:43:04
In order to finance a car, good Schufa information is required – but this is often burdened with negative features. You then have these options.
Schufa is important information for lending institutions. These can be banks, credit card companies, but also many commercial companies. The latter often offer installment loans as an alternative to immediate payment. In Germany, Schufa information is required for every loan granted. However, negative characteristics often lead to a low score and make it impossible to grant a loan. So how can a car still be financed?
If the negative Schufa entries are justified, it is not possible to take out a bank loan in Germany. However, there are various options for obtaining a loan. These are:
When including another person as a borrower, care must be taken to ensure that they achieve a good Schufa score. It is enough for the banks if the second borrower is able to pay the installments. This means that there is a regular income and a freely disposable portion of income is available.
The situation is similar with a guarantee. Although the guarantor is not a direct borrower, he must repay the loan if the main debtor is no longer able to do so. With the so-called Swiss loan, a loan is applied for in Switzerland. There is no credit agency there, similar to Schufa. However, the prerequisite there is that the borrower has a regular income and can pay the loan installments.
If a loan is rejected because of bad credit, you should always check the entries. It may happen that the entries are incorrect or have not been deleted. Once a loan has been repaid, it should be reported as completed. This deletion is particularly important for negative entries, such as reminders.
It can also happen that entries were entered incorrectly by mistake. It is therefore possible to request free information from Schufa once a year. This is how you can clean up incorrect entries.