Many people who finally want to buy their own car wonder whether car financing despite SCHUFA is actually possible. The KREDIT 123 team would like to address this question and provides a detailed answer below.
Basically, it is not an easy undertaking, a car despite SCHUFA or. to want to finance despite a negative SCHUFA entry. This is simply because the credit assessment procedure of German banks and credit institutions provides for the query of the data deposited with SCHUFA on an applicant. It does not matter whether it is a savings bank, a credit union, a Raiffeisen bank or a manufacturer-affiliated car bank: They are all contracting parties of the German credit agency SCHUFA and make a SCHUFA inquiry with a credit application!
Who would like to apply thus despite negative SCHUFA entry a car credit with a bank or a car financing, receives as a rule quite briskly a credit refusal. A rejection is issued even if a regular income can be proven. This is how strict the vast majority of banks and commercial credit institutions in Germany really are!
What are the ways out of this situation?
But even despite the fact that a negative SCHUFA entry has an extremely negative impact on the creditworthiness of the applicant, the same still has possibilities to obtain a car loan or car financing despite SCHUFA: namely with the help of loan collateral.
Provision of collateral for car financing despite SCHUFA
Those who do not have a good credit rating and therefore in principle can not get a car loan, can turn the tables by using personal collateral options. These include, on the one hand, the addition of a second borrower, and on the other hand, the entry of a guarantee.
Application for the car loan as a joint loan
If a car loan is applied for as a joint loan and the second borrower has a sufficiently high credit rating, the main applicant can still get his car financing despite SCHUFA in the end.
Tip: Even if the main applicant has a high credit rating, in some cases it is advisable to still add a co-applicant to further improve the interest rates and conditions of the car financing!
Registration of a guarantee
The registration of a guarantee can also ensure that a car can be financed despite a negative SCHUFA score. However, it must be clarified whether a conditional guarantee is sufficient or whether a directly enforceable guarantee is necessary.
Assets and objects as collateral
To realize a car financing despite negative SCHUFA, assets and property can also be pledged, provided the lender agrees to this. In technical jargon, this is referred to as real or tangible loan collateral; probably the best known of these are the mortgage as well as the land charge.
If the credit seeker has a negative SCHUFA entry due to payment defaults, but can prove a high regular income and provide an already paid real estate as real loan collateral, a car financing despite SCHUFA is also possible here, especially since the car to be purchased can also serve as additional collateral. In general, however, approval still depends on the discretion of the contact person at the bank.
Car loan despite SCHUFA from foreign banks?
Another way to get a car loan despite SCHUFA is to apply in other European countries. In this context, the "Swiss loan" in particular has gained a lot of notoriety.
Foreign banks, located for example in Switzerland or Liechtenstein, are of course not contractual partners of the German credit agency SCHUFA and do not query the SCHUFA data of the German applicant in the course of their credit checks. So if you have a high regular income and can basically repay the monthly installments of a car loan without any problems despite a negative SCHUFA entry, you have a good chance of getting a fair and favorable car loan despite SCHUFA at a Swiss or Liechtenstein bank.
By the way, such a "Swiss loan" can be considered not only a car loan despite SCHUFA, but also a car loan without SCHUFA. When taking up the same, namely also no SCHUFA entry is made!
Tip: Taking out a "Swiss loan" without SCHUFA may be worth considering in certain cases for all those who want to continue to keep a "clean slate" with SCHUFA!
Our conclusion on financing a car despite SCHUFA
Car financing despite SCHUFA is not an impossibility, especially if personal or real loan collateral can be provided. Furthermore, the approval of a car loan despite SCHUFA can also be achieved by applying to a Swiss or Liechtenstein bank. The important thing here, however, is to be able to demonstrate a sufficiently high income and convince the foreign bank that is to grant the loan of your creditworthiness!