Month: August 2019

credit bureau Holding AG is a credit agency. It is not, as many think, a state-owned company, but a private company in the form of an AG.

Shareholders are also their clients at the same time: banks and trading companies hold the majority of the issued shares in credit bureau.

Incidentally, the name credit bureau comes from the former name “protection association for general credit protection”. Its main task is to collect and provide information about both individuals and businesses.

This is primarily about information that is relevant to any lending. Not only consumer credit and the classic bank loan, but also contracts (mobile phone, rent) or installment loans count as “credit” here.

Facts and figures about credit bureau:

  • Every year, 128.9 million requests for credit are submitted to the credit bureau.
  • The credit bureau has stored data from 67.2 million people and 5.3 million companies
  • Every year, 2 million consumers ask for their own score.
  • 90.7 percent of consumers have only positive information.

More about credit bureau:

Questions and answers about credit bureau What is a negative entry in the credit bureau What is a credit report What is credit bureau scoring? What is the credit bureau clause?

Who does the credit bureau work for?

Who does the credit bureau work for?

The credit bureau is a credit reference agency, ie it collects data from consumers and businesses. From these data, it generates so-called “scores” – scores that reach the consumer. This score tells you how likely someone is to make a payment or to fulfill a contract.

This is important for almost all companies. If you want to buy something on account today, you have to expect most companies to ask for the credit bureau Score. This can be done in just a few minutes.

If the company sees a bad score, it will reject the purchase on account and insist on advance payment. The same is true for telecoms companies: a bad credit bureau score prevents anyone from signing a mobile phone contract.

Even landlords are becoming more and more likely to query the credit bureau score to ensure that rental payments arrive on time. For companies, the query at credit bureau means a certain security.

What data does the credit bureau store?

What data does the credit bureau store?

The credit bureau first saves all contact data of a person. This includes the name, address, date and place of birth, place of residence and previous addresses. This is also a picture of the person’s removal behavior.

Credit or contract behavior:

credit bureau continues to save all existing and partly old contracts in daily business conduct. This includes:

  • Checking accounts, business accounts, seizure protection accounts
  • credit
  • Loan agreements, installment agreements
  • Phone / internet / phone contracts
  • Customer accounts at shops or by mail order

Data on payment behavior

This is the heart of credit bureau, the payment behavior of a customer is listed in detail and from it the credit bureau score is determined – this in turn decides whether a consumer z. B. receives a loan or may conclude a mobile phone contract. The payment history data includes:

  • Due claims that have not yet been paid but have been reminded.
  • Claims that were denied by the courts and then not settled or settled.
  • Use of accounts or credit cards after they have been blocked / limited etc. (misuse)
  • Information from official announcements or public directories of the courts, eg. B. Bankruptcy applications
  • Affidavit
  • Applications for personal bankruptcy / consumer insolvency proceedings
  • Opening, rejection or closure of insolvency proceedings
  • Arrest warrants (eg for submitting an affidavit)

Data for inquiries

Finally, credit bureau also stores data on when and where the consumer may have applied for an installment loan, telecommunications contract or the opening of an account. Why? Who makes requests is willing to make debts. Also the inquiries about the own creditworthiness with the credit bureau are stored. However, the credit bureau assures that this request has no impact on the personal credit bureau score.

Incidentally, the credit bureau procures only a part of the data itself. A large part comes from other companies, which forward their data consumers to the credit bureau. This is always the consent of the customer required.

What is a credit bureau scoring and why is it so important?

What is a credit bureau scoring and why is it so important?

The credit bureau scoring tells you how likely it is that a person will not or can not make payments in the near future. It is assumed here that a person who z. B. never paid an invoice too late, will pay his future bills on time. A person in private bankruptcy, with multiple open claims, will not pay a next bill with a higher probability.

These two examples are striking and probably also agree – in normal life, however, there are usually no extreme cases, but people who used to have financial problems without having to pay, but then pay all the installments on time. The score should now tell banks, companies, mail order companies or telecommunications service providers how financially trustworthy the person is.

Incidentally, the credit bureau does not just have one score, but several more per person, which are staggered by industry.

These scores theoretically predict possible payment behavior derived from past payment history. The whole thing works with a statistical formula, which the credit bureau but not published. But it can be assumed that the credit bureau sums up several pieces of information from the collected data.

A credit bureau scoring is thus composed of past payment behavior, eg how punctual he paid installments, whether the rent was always paid on time, etc. and data on business life in general: How many installment loans are currently running? Is the person in debt? The scoring is thus the result of the collected data of a person, from which the credit bureau now tries to foresee future behavior.

How does credit bureau affect my credit opportunities?

How does credit bureau affect my credit opportunities?

Almost every company today asks the credit bureau Score of customers who have a term contract (rent, mobile phone), loan agreements, installment agreements or similar. want to complete. Landlords often get a credit bureau information. The credit bureau itself does not give “recommendations” – it only provides relevant information.

Every company, whether bank, landlord or mail order company, has its own criteria when it comes to granting loans or installment contracts. The credit bureau score is only one criterion of many. In everyday life, however, it is often the case that, above all, banks only look at the credit bureau score and the rest of the relevant information, eg. A fixed income, neglect.

Other companies are more accommodating and can overlook a not-so-perfect credit bureau score. Who z. For example, if you’ve always paid your cell phone contract on time, but the score is not quite optimal due to some unpaid mail-order invoices in the past, you could still get your new cell phone subscription approved.

Unfortunately, the credit bureau score is increasingly being seen as a “quality feature” for a human being. Landlords ask the score of anyone interested in a rental home, and although someone can boast a solid credit bureau scoring, there may be someone who has a ‘better’ score – this will then receive the apartment.

What data from me will be shared with companies?

What data from me will be shared with companies?

When a company makes a request to credit bureau, only the information relevant to the request will be disclosed. At least that’s what credit bureau says: “Whether an ongoing installment loan is ‘relevant’ to a request from a telecoms company, but it decides alone – the person whose data is shared can not object if it has once agreed to a query.

Incidentally, credit bureau distinguishes between two categories for requesting companies: A contractor and B contractor. The category A contracting parties include banks and savings banks. If you make an inquiry about a person, you will receive all bank-relevant information, ie whether current accounts are available or which credit cards are available.

You also receive information about whether installment loans are in progress, loans have been terminated, or other negative information such as bankruptcy or affidavits. In addition, the Bank learns if invoices or contracts by telecommunications companies, the mail order, etc. were not paid or have been reminded. However, the bank does not know which companies this is the case for.

Requests from other companies stored in a consumer’s credit bureau score will also be reported to the bank. Anyone who applies for a loan from one bank and is denied will find it difficult to be successful at the second bank: The second bank learns through the credit bureau Score that a loan has been requested elsewhere before.

B-contractors are trading companies or telecommunications companies. You will find out less than banks on a request: you are only informed that there are defaults or disruptions. You do not find out in which area and which companies you might be a customer.

However, all contractual partners will find out the personal data such as place of residence, address or date of birth. This is for the purpose of uniquely identifying the person through whom the request was made.

How can I access my data at the credit bureau?

How can I access my data at the credit bureau?

For those who want to know what data the credit bureau stores exactly on one, there is the self-information. Once a year you can apply for it directly at the credit bureau for free. But beware: The credit bureau offers various types of information, including premium access. The free self-assessment is regulated by law and must be offered by it. It hides under the term “data overview according to § 34 Federal Data Protection Act”.

The credit bureau also offers a credit report. It costs only 29.95 euros. As a rule, this is not necessary, as all those who may require a credit report, they can even ask the credit bureau – of course, only with the consent of the consumer.

Although the credit bureau offers a comprehensive online offer, the legally required, and for the consumer free self-disclosure must be cumbersome with a written application form.

What should I do if my stored data is wrong?

What should I do if my stored data is wrong?

A wrong or no longer valid credit bureau entry can have serious consequences for consumers. You do not get a loan, a mobile phone contract or anything like that and only because credit bureau did not delete a record.

That is why it is so important to catch up with self-assessment once a year and check for errors. If you have discovered something that should be corrected by the credit bureau, you can contact the credit reference agency, so you have a chance to delete the erroneous credit bureau entry.

Unfortunately, neither e-mail nor telephone support is offered for such concerns. One must therefore formulate his request in writing. It is best to additionally provide evidence of the wrong entry, eg. As receipts, registration certificates o. Ä. credit bureau then usually contacts the respective business partners and ensures that the data must be adjusted.

In this process, weeks can quickly go into the country. Anyone who needs a loan quickly, and this is denied due to the wrong entry, can be here once impatient. It is therefore advisable to complain about wrong entries immediately and not only when they become an obstacle.

How long does the credit bureau store my data?

How long does the credit bureau store my data?

credit bureau stores various data sets about consumers and companies. As different as the data are the storage periods. As a layman you can lose the overview here. We recommend soliciting free self-assessment once a year and checking each entry. The following deadlines must be observed:

List of individual deadlines:

  • Inquiries for financial products, eg. For example, inquiries about a loan from a bank or an installment loan from the online shop will no longer be forwarded after 10 days, but stored in the personal file for 12 months.
  • Loans, irrespective of installment loans, loans, etc., will be stored for three years after full repayment. Credit card accounts are also saved three years after the account is closed.
  • Also for three years, the credit bureau stores affidavits. The period begins on the day on which the debt was fully settled. Thus, after payment of the debt, one is led for three years with an affidavit in the credit bureau. This also applies to arrest warrants for affidavits. However, here it is important to ensure that the court can issue proof that the debt is fully settled. If you submit this proof to the credit bureau, the entry can also be deleted earlier.
  • If a consumer insolvency procedure was initiated and then rejected, this can also be found in the credit bureau file for another three years.
  • Due receivables, ie unpaid invoices, are deleted after three full calendar years. The deadline for the three years, however, begins to run only at the end of the calendar year. Specifically: A due, open invoice was entered on 15.10.2010 in the credit bureau file. The deadline for deletion after three years starts to run on 31.12.2010, finally the claim will be deleted on 01.01.2014. If the matter is not paid or otherwise regulated, the period is even four years. Here is the credit bureau based on the statutory limitation period.
  • Personal data such as address, place of residence, past places of residence, birth name, etc. always remain in the credit bureau. Data about customer accounts, eg. Current accounts or accounts for mobile phone contracts are deleted immediately after deletion of the account. Attention: But if there is still a claim from such a contract, this is considered quite regular as a claim and is thus subject to the storage period of three years.
  • There is also an exemption for small claims that fall below 2000 euros: If this claim was reported after 01.07.2012 and was paid within 6 weeks, it can be deleted immediately after completion. This claim may not be titled, so paid after the issue of an enforcement order. To delete such a request for the exemption, you should contact the credit bureau in writing and enclose evidence (receipt, bank statement).

Which web pages on the internet enable credit bureau information

Which web pages on the internet enable credit bureau information

There are some pages in the net, which offer a credit bureau information. However, these sites all have one goal: to make money. Here are usually charged fees that you really do not have to pay.

One is on the safe side, if you catch up to the self-information directly at the credit bureau – foreign sites do nothing else, and also require money for it. Note: The self-information at the credit bureau can be requested once a year completely free of charge.

Credit without credit bureau really without credit bureau?

Credit without credit bureau really without credit bureau?

Many consumers are asking themselves this question, especially if we already know that all German banks cooperate with credit bureau. The most well-known credit without credit bureau offerer is the Sigma credit bank from Lichtenstein. This bank has no seat in Germany and is therefore not obliged to ask for information about the applicant at credit bureau. The fancy credit bureau information does not mean that the said bank waives a credit check.

Whether dream vacation, new fitted kitchen or buying a home – not always enough is the savings on the account to realize his dreams and projects.

In times when interest rates have reached a record low, more and more people are embarking on the idea of ​​funding. So-called universal loans do not exist; Although the principle of the loans is identical, there are – depending on the project – different financing options.

A short overview

A short overview

Whether disposition credit, mortgage lending, installment or securities or construction credit – there are various financing options that should be checked in advance to see if they can meet the needs of the borrower.

Depending on the loan, there are also different requirements to be met. While there is often only a regular income for the normal repayment credit, mortgages may also require certain collateral – such as shares, land, insurance – to get the desired amount.

Then there is the credit without or despite negative entry in the credit bureau, which is not frivolous , where borrowers must be careful not to fall into the trap of a dubious provider.

More on the subject of debt restructuring and dispo:

Credit rescheduling also despite credit bureau Credit instead of disposition and overdraft How can I prevent over-indebtedness?

1 The installment loan

1 The installment loan

The installment loan is the most common type of loan. Finally, you can use a installment loan to finance furnishings, the new car or a dream trip.

The borrower can take out financing with or without purpose; with purpose means that the money may be used only for a certain thing – so the car purchase. If the borrower chooses to finance without purpose, the money is freely available to him.

Installment loans can be equipped with a fixed or variable interest rate. For fixed interest rates, the monthly installments remain unchanged until the end of the term. If the borrower chooses variable interest rates, the interest rate reacts to developments in the European interest rate. If the interest rate rises, the lending rate and the monthly installments increase automatically; but if it falls, the credit becomes cheaper.

2 The disposition credit

2 The disposition credit

A disposition credit – or a credit line – is defined as financing whose characteristic lies in the fact that the ordinary current account may be “overdrawn”.

Thus, the holder of the checking account can use money, which is de facto not available. As a rule, the current account can be overdrawn up to three times the salary. Such financing is intended primarily for short-term investments, since, on the one hand, no application must be made to the bank, on the other hand, the discretionary credit is among the most expensive financing that is offered.

The interest rate is – in direct comparison to installment loans – extremely high. The borrower is free when he recovers his account; however, the longer your checking account is in negative territory, the more expensive the credit line becomes.

Even if the loan is uncomplicated, you should use that option only in the context of short-term investments; If you want to finance larger projects, you should opt for a installment loan. Disposition loans are suitable, for example, when unexpectedly high bills (for example for car repairs) have to be paid, but the credit balance in the checking account is insufficient.

3 The call credit

3 The call credit

Withdrawal loans represent the possibility of arranging a sum – up to a maximum of EUR 50,000 – with the bank, which is available if required. The agreed amount is transferred to the current account of the borrower.

However, if only 15,000 euros (or part of the agreed sum) are required at the beginning, interest will only be charged for that sum. With the call-off loan, agreed sums can be paid out – step by step; From time to time, the borrower may also inform the bank that, if he can afford a portion of the amount, he will not need the full amount.

Such financing is suitable if it is unclear at the beginning of the project which costs can actually arise.

4 The construction financing

4 The construction financing

As construction loans or mortgage lending are larger amounts, these lending operations are usually of a longer duration, so that terms of 30 years are not uncommon.

Mortgage lending is repaid with monthly repayments; Here, too, the borrower – as with a installment loan – has to decide whether to opt for a fixed or variable interest rate. For mortgage lending special payments (special repayments) are possible, so that the term can be shortened.

Sometimes the loan can also be redeemed prematurely; However, in this case, the bank must be contacted in advance if a prepayment penalty is due or not.

Mortgage lending, as it involves large sums and long maturities, is only authorized if the borrower can provide proof of collateral and a regular income. Collateral may be funds, securities or life insurance.

5 The securities loan

5 The securities loan

If the potential borrower owns shares, bonds or funds, he can use the loan to borrow his investments – with a certain percentage. Thus, the securities can be transferred as collateral to get a loan from the bank. The loan amount is based on the value of the securities account (current market value).

The mortgage lending value is usually set lower, so that any fluctuations can be taken into account. If prices fall, banks can advise the investor to sell the securities or increase the value of the deposit.

If the borrower uses securities, these can be borrowed up to a maximum of 90 percent of the value; in equities the value is between 40 and 60 percent. That variant may be risky, as the borrower may end up losing more money than expected; The amount of the loan is determined depending on the value of the investment.

6 The personal loan

6 The personal loan

Sometimes, however, a personal loan – the so-called P2P loan – can serve to realize the projects. These are loans that are not made available by the bank, but by individuals who expect high profits by providing the sum. There are various platforms that provide borrowers and lenders.

Above all, those financing for the self-employed and freelancers are interesting, since such professional groups always have problems getting a standard installment loan. It should be noted that the effective interest rates – compared to installment loans – are higher; This may also be due to the brokerage and account maintenance fees charged by the credit-intermediary platforms.

7 Credit despite credit bureau

7 Credit despite credit bureau

If the potential borrower has a negative entry into the credit bureau, it can sometimes be difficult to get funding. It is important that – despite a negative credit bureau entry – you still pay attention to the providers and do not accept the first offer. Finally, there are numerous financial institutions that want to make profit out of necessity and attract with various ads people who have already been rejected by many banks.

This is sometimes a reason why the misconception exists, loans without credit bureau query are dubious. This is not true; As a rule, these are ordinary installment loans. The only danger is trapping a dubious provider. However, there are several criteria that, when met, clearly demonstrate that it is a reputable lender.

A reputable provider will never charge fees for inquiries and non-binding credit offers; He will also have a serious website – including imprint – and on ads such as “money immediately – withdraw money within 24 hours”. If the borrower is unsure whether the found lender is a reputable company, he can also look for reviews on the Internet and check whether there are sometimes negative entries or not.

In the end, the credit comparison is worthwhile

Regardless of whether it is at the end of an ordinary installment loan, mortgage lending or a loan without credit bureau query should be – only who faces the different offers, will ultimately find the cheapest loan. There are numerous portals on the Internet that provide a free credit comparison.

Borrowers but not only pay attention to the interest rate, but also on the overall burden. That sum indicates how expensive the financing at the end – including all processing and account maintenance fees – actually becomes.

Because not every bank evaluates the credit rating the same, customers can receive several offers in the installment loan comparison. It can not be ruled out that a bank that was originally listed only in third or fourth place offers you the best borrowing rate based on your personal data. Zero interest rates attract consumers into installment loans. Why the cheapest installment loan is not necessarily the best. The Flexicor of the General Civil Servants Bank has once again performed well in the installment loan test FOCUS-MONEY:

Installment credit comparison determines the cheapest bid

Installment credit comparison determines the cheapest bid

In order to receive a installment loan in a reasonable time, the credit conditions of the various credit institutions inevitably have to be compared. A reconciliation is necessary as the interest rates and charges for individual loans vary considerably from one house to the next. In order to receive a installment loan in a reasonable time, the credit conditions of the various credit institutions inevitably have to be compared.

A reconciliation is necessary as the interest rates and charges for individual loans vary considerably from one house to the next. The same applies to opaque charges, which are incurred in addition to the borrowing rate and complicate the installment loan comparison. For example, providers may no longer charge processing fees for an installment loan.

In addition, the German Price Calculation Ordinance stipulates that each service provider must specify not only the debit interest for his installment loan, but an amount including all fees incurred, so that the installment credit comparison becomes transparent. However, if you want to use the special services of the National Bank for your loan, you should make sure that the annual fee percentage does not take them into account.

In the installment credit comparison, suitable service providers, starting with the cheapest loan, are listed according to the required information (total amount, duration, purpose). By varying the duration, the monthly rate of the various providers can be determined in a few moments. The provider calculates the current interest rate based on the credit rating when he receives the customer request. On the left side of each offer, a representative example according to 6 a DAUB is listed, which provides another reference point for the installment credit comparison:

At least two-thirds of the clientele are granted the specified or even better credit terms by the respective provider. Because not every house bank rates the creditworthiness the same, several bids can be obtained in the installment credit comparison. It can not be ruled out that a house bank listed in third or fourth position will offer you the best borrowing rate based on your personal information.

What is the installment loan used for?

What is the installment loan used for?

The interest on a loan may also depend on the client’s status or the purpose of the loan. Also, the purpose of “car loan” ensures more favorable conditions: Prerequisite is the handover of the vehicle license to the house bank. The customer can request his offer directly through the installment credit comparison provided that he fulfills two conditions:

Individual service providers can create further prerequisites – for a staff loan, for example, a permanent position for more than 6 months. Based on the information, each house bank calculates which installment loan rates it can provide. Compare with which provider your personal annual percentage is the cheapest. But you should also consider other significant burdens – eg for special repayments.

Now you can download and sign the loan application for the optimized installment loan offer. Send the order together with the desired documents to the house bank. After the documents have been received at the house bank, the desired amount is transferred within a few days to the specified bank account.