For credit applications made in Germany, financial institutions generally carry out a Credit Bureau check. You will not only receive a notification of possible negative entries, but also an insight into existing financial liabilities and information about the current Credit Bureau score.
No further Credit Bureau examination by German lenders
It is quite possible that German banks give their existing customers another loan without a Credit Bureau check, but they almost never communicate in advance. Many banks grant new customers a disposition loan for the first time half a year after opening an account, usually not having to do another Credit Bureau check because they had already done so six months ago. Mail order companies also often allow their existing customers to make another partial payment as a loan without a Credit Bureau check, if it has not been overly long since the last purchase.
The house bank can do without the Credit Bureau check for small loan amounts and only use internal credit data for the award decision. These are more stringent than the Credit Bureaudaten anyway, because the bank registers with each of its own customers every late payment and overdraft. The loan without a Credit Bureau check is to be distinguished from a Credit Bureau-free loan, since the financial institution reports the money being awarded to the credit protection agency.
Credit Bureau-free loans
If consumers want to be sure that a loan application without a Credit Bureau check is paid out, they opt for a Credit Bureau-free loan. Insurers award this by enabling their customers to secure their own payment claims. This possibility of borrowing free of Credit Bureau exists in principle with capital life insurance and with private pension insurance contracts. However, it is excluded if it is a state-funded Riester pension or Rürup pension, the loan of which immediately triggers claims for recovery by the state through the allowances paid or the tax benefits granted.
Loan customers most often take out a loan without a Credit Bureau check from a financial institution in Switzerland. The federal banks have no access to the data of the German Credit Bureau and can therefore neither carry out a Credit Bureau check before the loan approval nor report the payment of a loan to the latter. Loans from Switzerland that are disbursed without a Credit Bureau check are not foreign currency loans because they are processed entirely in dollars.