In practice, it regularly happens that consumers want to take out a car loan, but have a negative Schufa information. This is not exactly conducive to lending. But a negative Schufa is not necessarily a hindrance to a car loan. Many automobile banks, whose business purpose is exclusively the granting of car loans, grant car loans under certain conditions also with negative Schufa of the applicant. So it is not absolutely necessary to take out a loan without Schufa.
The facts about the problem
Not every negative Schufa is the same. There are so-called hard and soft negative characteristics. Banks do not rate every entry equally bad. An already completed reminder is by far not as “bad” as the entry on the submission of the sworn statement or a running private insolvency proceedings.
In the case of a negative entry in the Schufa, automobile banks generally do not rigorously reject the loan application. Here are all factors that account for the creditworthiness of a person.
The bank rates among others:
• The Schufa information
• the profession and the employer
• own experience
• The overall situation (marital status and age)
• The amount of the deposit
The chances of getting a car loan despite negative Schufa increase with the amount of the down payment, which the customer brings into the financing. In addition, the bank’s own experience counts. A loan is granted even if Schufa is bad if the applicant was or is already a client of the bank and has always paid his installments on time. A good income and a respected employer also have a positive effect on the decision.
If all factors are correct, it may be that the car loan is approved despite negative Schufa, without the credit applicant must provide additional collateral.
To provide a solvent guarantee
If the bank appears too risky for the bank, but does not want to reject it in principle, it will demand additional collateral. As a rule, this is a solvent guarantee. If the loan seeker is able to bring a good guarantor, the likelihood is great that the bank will grant the car loan despite bad Schufa.
Our tip to the guarantors
Anyone who signs a loan agreement as guarantor must be aware that in case of doubt, he has to pay the installment. Today the self-enforceable guarantee is customary. This means that the guarantor can immediately be held accountable by the bank if the borrower does not meet his obligations under the loan agreement as agreed. Even if only one rate bursts, the reminder also goes to the guarantor. But not only that is important. This guarantee is a so-called contingent liability that negatively affects the creditworthiness of a guarantor. Anyone who intends to take out a loan in the foreseeable future should not give a guarantee.
Why a car loan is also to get with negative
Unlike a cash advance, a car loan is a special purpose loan. The bank has a deposit as collateral, the amount of which the bank can determine and the vehicle registration. If a customer does not pay his installments, the loan can be terminated and the vehicle secured and sold.
If a borrower has paid 30 percent or more in his car loan, it is relatively unlikely that he will default on his installment. The chances of getting a car loan despite negative Schufa are highest among the car banks. With direct or foreign banks, which are to give the loan in the form of cash, it looks again different.