Beware of credits without a Schufa clause
Private households often have their own little financial crises. To bridge financial strains, taking a new debt seems to be an appropriate option, but many banks are very reluctant these days to hand out new credit. People who got received a negative rating by the Schufa credit bureau are not likely to get any money from serious banks.
However, there are numerous advertisements for credits where no Schufa disclosure is demanded. Such offers sound tempting at first, but they often contain big risks and can be a total rip-off for the customer. Such credit offers are found even on reputable internet sites because Google helps to incorporate aggressive advertisements on many websites.
Although such credit offers are not new at all, a lot of desperate consumers are stepping right into the trap. Dubious brokers visit such people, their only intention being to collect high fees and sell overpriced insurance. This often works because people who need money and hope for credit will often sign anything presented to them. The problem is that almost never will someone actually receive the credit. Oftentimes illegal fees are collected, which means that not only does the customer receive no credit, but often ends up paying hundreds of euros to the broker. Trying to get the money back in a legal manner is possible theoretically; however, this usually fails because the customer cannot afford a lawyer. Even if a court rules in favor of the customer, the brokers cannot pay back and the money is lost practically. With foreign credit brokers, it is even more difficult to get any money back. Switzerland especially is known as a source for such credit offers.
As a general rule, it can be assumed that credits without successful investigation of the customer´s credit history cannot be serious, because almost no bank will take such a risk. If money is paid out in such an instance, interest rates are very high and will lead the customer deeper into a debt trap. But in most cases promises made are never kept in any way.