A lot of media attention from scandals makes borrowers more attentive before they contact a credit broker.
A targeted search is made for the loan without any upfront costs, in the hope of avoiding the fraud with prepayment and dubious expense reports. It is doubtful whether the measure will have any effect. Prepayment for loan brokerage has long been illegal, but prospective customers still pay in the hope of getting a loan.
We want you to finance securely and at low interest rates. Our guide gives you more than just the tip “keep your eyes open” for financing requests through intermediaries.
Credit free of charge – no protection against black sheep
Carefully looking for a loan with no upfront costs shows caution, but unfortunately the impact is very limited. A mediocre broker would hardly advertise that he intended fraud by illegal prepayment. He will certainly not show that he does not intend to broker credit and cheats heavily on reimbursement of expenses.
Untrustworthy placement offers are no longer recognizable on the poorly made homepage, as they used to be. Black sheep use the same clichés and advertising slogans as reputable placement offers. Extensive research on a specific intermediary in forums and consumer protection can offer real protection. On the consumer protection side in particular, malefactors are mentioned by name.
The range of “rip-offs” in the brokerage business extends far beyond the loan at no extra cost, especially for offers with negative Credit bureau. The factual scale ranges from data theft to insurance sales. An important indication of the seriousness of the agent is currently provided by cocky advertising slogans. If the Credit bureau is negative, the money is not ready for collection on the agent’s desk.
What can a credit broker charge?
It is only with the Google search tool that it is not possible to find out who is providing serious loans without spending a lot of time. We could give you names here. But how do you know if the information is correct. Trust is good, control is better. You should know what a credit broker can charge. This is the only way to assess what is legitimate and what is legitimate, outside of the search for credit with no upfront costs.
Section 655 ae of the German Civil Code regulates what the credit intermediary is allowed to charge in Germany and what is not. Section 655c allows him to charge an agency fee in the agreed amount if the loan is legally binding. All opposition periods must have expired. This is usually the case when the money is already in the account.
In addition, he may charge additional fees. For example, he may not charge consultancy services if he receives a commission after 655c. In addition to his commission, he can only invoice his actual expenses. The costs must be shown individually. With an online placement this can only be a few USD. It becomes expensive when the agent is invited to visit the house. (Ride costs).
* (The preceding lines only reflect our non-binding opinion and are not legal advice. Binding information may only be provided by lawyers).
Credit with poor creditworthiness – that’s how the bank works
Protection against unfair business models is also provided by knowing how a credit with poor credit rating is assessed by credit institutions. Regular credit institutions refuse or suddenly request a guarantor or co-applicant because the score decides. A reputable broker offers the loan free of charge from a bank that does not check the credit request using the score.
The credit decision is made as part of the individual case assessment. The documents that are often to be submitted in the original are checked. The current bank statements are requested particularly frequently. They provide very detailed information about the financial situation of the person concerned. Credit is only granted if the supporting documents refute the negative credit forecast by means of the score or the Credit bureau extract.
In the case of poor creditworthiness, more important than looking for a loan with no upfront costs would be credit protection through attention. An anecdotal agent reduces the already poor creditworthiness through side transactions (savings contracts, insurance, investments, etc.). Every current payment obligation, regardless of whether it is an old loan or a fresh life insurance policy, reduces the income required to prove the ability to pay in installments.
Loan advertising through intermediaries – don’t believe everything
With half-sentences, the advertising promises everything borrowers would like to hear, just to bite many interested parties. In the case of loan offers with a negative Credit bureau credit rating, only the mass secures the intermediary’s income. Depending on which figures are used, only 10 percent of all prospective customers are qualified to lend despite Credit bureau.
If a quick loan is promised despite Credit bureau, it is a micro loan with a short term. Despite Credit bureau, between 100 USD and a maximum of 1,000 USD (existing customers) can actually be in the account quickly. However, the interest rates are also at the level of an overdraft facility. It takes significantly longer to approve relevant loan amounts, for example sustainable debt restructuring despite Credit bureau.
Serious credit brokerage with no upfront costs – contact the market leaders
Our tip for serious credit with no upfront costs and no cost traps through intermediaries is Best Lender. The loan brokerage portal was not yet involved in known scandals. It is even explicitly praised and recommended by the “German Institute for Economic Research” (DIW Berlin).