German credit institutions usually pay out an instant loan within two bank working days. A bank refusal is the non-approval of the loan application by a specific financial institution. Since each bank uses its own lending guidelines, the rejection of the loan application by a financial institution does not preclude another bank from paying out the desired loan.

Sometimes the instant loan increases the chances of success when applying for a loan

Sometimes the instant loan increases the chances of success when applying for a loan

One of the most common discrepancies between the borrower and the financial institution is the inclusion of individual income components against the household income relevant for the credit check. The differences relate both to the inclusion of additional income and to the valuation of the work income of wage earners, for which financial institutions tend to use the lowest transfer amount in the last three months and applicants prefer average earnings.

Consumers with additional income or monthly changing wages have a good chance of getting an instant loan despite the bank refusal, as the instant loan is often issued without proof of salary. In this case there is an obligation to provide the relevant data in the loan application, but the bank can no longer change the income calculation made by the loan seeker by deleting individual components. Thus, the applicant can easily apply for an instant loan despite a bank refusal if this is based on differences in the income calculation.

The immediate loan application after bank rejection due to insufficient total income or poor Credit Bureau

The immediate loan application after bank rejection due to insufficient total income or poor Credit Bureau

If the financial institution that was asked first refused to grant the loan due to an income that was too low to repay the loan installment, the consumer chooses a lower monthly installment for another application for an immediate loan despite bank refusal. This can be achieved by extending the loan term. In the event of a credit refusal due to bad Credit Bureau information, some Swiss banks are available for instant Credit Bureau-free lending. However, the federal money houses define the instant loan differently than German banks and understand this to mean a loan payment within a week.

The processing time for an instant loan, which is significantly longer than that of domestic banks, despite a bank refusal from Switzerland, is due to the fact that the Credit Bureau information that has not been obtained is replaced by a careful examination and stringent assessment of the working income of a credit customer. The federal financial institutions generally only accept credit inquiries received directly from them if the customer’s income from their main job exceeds the garnishment limit. Exceptions are possible through a credit intermediary.

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