Application for a loan from a bank despite paid Credit bureau entry
The Credit bureau (Protection Association for General Loan Protection) is a company that stores data on all citizens living in Germany who are involved in financial transactions. Credit bureau is notified of the receipt of a current account, as is the installment purchase in the store, the conclusion of a cell phone contract or the application for a loan from a bank.
The affiliated companies report this. However, if an invoice is not paid on time or a legal dunning procedure is started, a corresponding negative note is made. With such a note, it is almost hopeless to apply for a loan, because a rejection is practically inevitable. But what actually happens if the Credit bureau entry would actually lapse because the bill has been paid?
How long does Credit bureau save the entries?
The entries are stored in the Credit bureau until the thing is done. If an open invoice has been paid, however, the entry is not deleted immediately, instead there is only a settlement note. Everyone who makes an inquiry to Credit bureau now sees that there were difficulties with the repayment, but that the matter is settled.
It is up to the bank to determine whether a loan can be made despite the Credit bureau entry being paid for. Such an entry is normally considered positive because it shows that the debtor was willing to solve the problem. The problem is that this process remains in the Credit bureau three years after completion and is visible to every member who is connected.
Some find it difficult to approve a loan despite the Credit bureau entry being paid for. If you want to avoid this from the outset, you should opt for a loan from Switzerland.
Credit from Switzerland
The entries in the Credit bureau are irrelevant for the banks in Switzerland. Here is a real chance to get a loan despite having paid Credit bureau entry. If you have a long-term employment relationship, you should at least take this step because applying for a loan in Switzerland does not cost any money.