Immigrants (whether from another EU country or from further away, such as the USA) are facing a particular challenge when it comes to apply and get successfully granted a loan!
The main reason: The creditworthiness history is usually short, if existent at all!
What the options are and how to get them at best, you can learn in this article. Which way you choose, you will personally decide at the end!
You have 3 options!
… and yes, who reads carefully will also find our tips on how to get the best possible conditions – low interest!
1. The Main Bank
The first way will usually lead you to your main bank in Germany – that is, where you already have your current account.
This has the advantage that you have already built a customer relationship. You are known as a customer already and the bank can have a simple glance into your financial history. One can also see, if regular income was recorded on your account in the past.
If your accounting has been smooth so far and you have stayed within your credit line, etc., then this should certainly be a point that speaks for you.
Beyond this, we can unfortunately not say a lot about the main banks. After all, there are around 2,000 banks in Germany – and we have specialize here on this special portal on a few, but really good direct banks.
2. Online Loan Comparison
If it did not work with the loan application at your main bank (or if you want to keep looking for potentially better conditions), a loan comparison on the Internet is recommended.
At this point, I want to warn you: Do not apply simultaneously or in short time sequences at several direct banks!
These can be checked through the SCHUFA data base.
The SCHUFA report (credit investigation company) is the creditworthiness check, which is queried by default in Germany, when it comes to check the creditworthiness of a person – whether it is part of a loan application, a current account opening, when signing a new mobile contract or when ordering in an fancy mail-order business.
If one can see from your SCHUFA entries that you have also applied for a loan at several banks, then this has a negative impact on your creditworthiness ranking and the result is often that you won’t get any loan at all.
The most meaningful way is a loan comparison of many banks within a closed system, such as the online comparison tool Smava. There, you simply enter your data once and Smava will find the most suitable bank based on your stated information.
Here you can use this tool immediately
… let’s continue with the article:
There is of course no guarantee that it will work right away with your loan, but we have already received some very positive feedback. Therefore, our recommendation is: Start with this one!
Sum up all your income. Some people forget to indicate at the loan application, e.g. the income of their part-time job.
Since the bank may wrongly assume a lower income, it thinks that the income is not sufficient and therefore the borrower cannot afford the loan instalments.
Please note that when stating your income that the loan banks may want to see proof of these incomes.
Ideally, you can show payrolls. However, not every employer provides pay rolls of the best quality. Sometimes it is sufficient, if the salary payment is proven through the bank statements.
Important is a place of residence in Germany. If one cannot recognize this through the Schufa query, then proof through a registration certificate can be the solution. It is advantageous, if the income mainly comes from Germany.
Important: Use the recommended loan comparison tool and not several ones parallel. Various simultaneous loan queries lower the creditworthiness rating!
If no loan is approved by the main bank or the loan comparison on the Internet (at best, use the aforementioned comparison tool), it might be a good idea to wait a little.
It would be clever to use the waiting time to improve one’s creditworthiness rating (article in German language) – for example, by finding ways on how to increase the income or thinking of other sources of income that one could add to the application.
3. Loan Intermediary
If you are convinced that you really are a good candidate for a loan, however, the favourable banks with their standardized processes do not appreciate your personal situation enough – for whatever reason – and therefore, it did not come to a loan approval, then there is still the possibility to hire a professional loan intermediary.
These loan intermediaries have partially access to banks that have not yet reached their internal target of loan amounts and still want to grant loans as quickly as possible in order to meet their target figures.
Additionally, there are smaller banks that do not participate in Internet comparisons or banks from abroad, which are looking for investment opportunities in Germany. Your loan is their investment!
One of the most successful loan intermediaries on the Internet is Bonkredit (www.bonkredit.de).
One advantage is that the loan request is free of charge for you. However, there is no success guarantee, but it is still another possibility to get a loan, despite the previous rejections.
Our editors have personally met with the representatives of Smava as well as Bonkredit.
Although these two providers are very different in structure, both are working hard to find good loans for the loan prospectives. In the end, these providers are only paid in case of success – mind, paid by the bank, not by you.
Both loan experts have convinced us through their seriousness – otherwise we would not recommend them here – however, we cannot influence their individual credit decisions.
If you have general questions about the loan application in Germany, you are welcome to use the comments box at the end of this page. However, please ask specific questions about your loan application directly to the bank or the loan comparison/loan intermediary.
We wish you success!
PS: We would be pleased, if you manage to get a good loan in Germany due to our article. In this context, we would be happy for a feedback through the comments box.
Frequently read topics on this special portal:
- “Train” the credit line of a credit card to Euros 9,500
- Immediate overdraft facility at the free Comdirect current account
- Car loan: Comparison calculator and additional information
There is an exception: real estate financing, if the property is in Germany and the borrower works abroad. This article was about the subject “Instalment loan” in the sense of consumer loan. Further articles will follow.