Negative entries in the data collection of the Protection Group for General Loan Protection (Private Credit) are basically co-criteria for lending at the bank. But there are also alternatives that work without Private Credit information and entry, are generally a bit more expensive and therefore should be compared exactly.
Possibility to think carefully
If there are already financial problems and corresponding entries at the Private Credit, exemption from this situation becomes more and more difficult if there is not something serious on the revenue side. Of course, it can help to raise money and survive a critical phase when it is foreseeable, or to replace existing financial obligations with worse terms.
For example, a cheap loan from a settlement and without Private Credit is certainly a way to repay overdrawn syndicated loans. However, caution is advised when such borrowing drives up debt and makes repayment increasingly difficult. In advance, it should be calculated exactly whether the conditions of the new loan really bring benefits and the liquidity can also be improved by rescheduling.
The market for loans is large, diverse and sometimes confusing. In principle, there is a suitable solution for almost every need, if you research carefully and also read the fine print. Thus even with bad creditworthiness a favorable credit can be found in a comparison without Private Credit. Comparative criteria should be the annual percentage rate, any separate costs and early repayment options.
The amount of the loan can also play a role, because these loans without Private Credit are limited in their possibilities. All conditions and costs should be binding in the offer, because this is required by law for consumer credit in Germany. If a residual debt insurance, which assumes the loan installments in case of incapacity, unemployment or death of the borrower, mandatory, these costs should be reflected in the APR.
Of course, such a hedge can also be agreed separately, which in some cases even makes sense if, for example, the state of health is already so impaired that hedge in the free insurance market would not be possible or only with difficulty.
A cheap loan from a comparison without Private Credit can be a good way to overcome a financial bottleneck by B. an overdrawn dispo-credit is replaced, which is even more expensive. In this way, you can regain your financial flexibility and be able to pay off the obligation in peace. However, borrowing another loan should be considered if the repayment of other obligations is only stretched and no sustainable solution to the situation is in sight, as the debt spiral becomes ever narrower.