Long-term loans are better covered
A Credit bureau-free loan despite garnishment is obviously not what banks normally imagine as a safe investment, because lending to people who are already in the process of garnishment and at the same time do not want their Credit bureau entry to be queried are for the bank itself an enormous risk. For this reason, people with a garnishment of wages are almost generally rejected, because if the borrower’s salary or wages are already seized, there is usually no financial means to compensate monthly installments on time.
Therefore, the probability that there will be a delay in payment and “burst” rates is very high, which is why lenders usually do not take this risk at all. Nevertheless, some other factors play a role in the evaluation, such as how far the garnishment has progressed and how high the borrower’s income is generally. The type of employment is also crucial, since civil servants usually have better protection against dismissal and a later higher pension, which is why long-term loans are better covered. Low-wage earners with a garnishment of wages are only considered as borrowers of a bank if they can show at least one guarantor with an at least average credit rating. Through its liability to the borrower’s credit debt, the latter covers the risks that the bank would incur from lending.
Alternative credit options with more success
Private lenders promise a higher likelihood of successful lending because, especially when it comes to family members, they are more likely to make decisions based on personal relationships. A Credit bureau-free loan despite seizure of wages is also not a matter of course here, because the loan amount paid out is in most cases taken out by the lenders from their own savings, which of course is usually handled with more sensitivity; especially when it comes to larger amounts. One option for the prospective borrower is to spread the debt by spreading a large amount across different lenders.
This distributes the financial risk better, while still reaching the target amount in full. Of course, this is only possible if the person concerned also has sufficient opportunities in their own environment. If the financial situation also looks bad in the environment, the chances of successful borrowing are generally rather poor, because only a good relationship with each other allows borrowing at all, at least if the borrower’s creditworthiness is so poorly quantified. A Credit bureau-free loan despite attachment of wages is therefore quite possible, but the probability of a successful loan payment is somewhat low.