In order to be able to take out a loan, the solvency is checked carefully before an application is made to ensure that the monthly installments can also be repaid properly. The borrower takes a close look at the creditworthiness. The banks and financial institutions use various credit information for this procedure.
In Austria there is the Credit Protection Association 1870 (KSV), which is a creditor association and specializes in credit information, insolvency representatives and debt collection matters. This is the first point of contact for banks to examine a borrower’s credit rating. At the same time, of course, there are also numerous other ways to determine or monitor the creditworthiness of a potential debtor.
Entry in the register
Every person who has already terminated a contract (for example from an electricity or mobile phone provider) or who has run into financial difficulties because payments have not been made properly, will receive a (negative) entry in the register. As a result, the opportunities to obtain a loan deteriorate. This is primarily about the payment behavior of borrowers and such a negative entry is a warning signal for most credit institutions.
But despite a negative entry at, there is still the possibility to get a loan. To do this, you should still contact a financial institution and talk about the matter, whether there is still a chance to get money. A personal conversation can make a difference here, as the borrower signals to the bank that he is ready to talk.
Obtain self-disclosure – once a year free of charge
Once a year there is also the possibility to obtain a (free) self-assessment from KSV 1870 and other credit reports. For this, a written application must be submitted with an attached proof of identity. A self-assessment can be used to find out which exact data was collected and to which companies or institutions it was passed on.
This option should be used in any case, because this is the only way to get a precise insight into your own assessment and, if there is a wrong entry, you can take countermeasures in good time and thus significantly improve your own payment behavior.
In the case of a false entry, an objection can also be raised and requested that it be corrected or deleted entirely. If incorrect entries are not recognized, banks and credit institutions always assume poor payment behavior, which has a very negative effect on a loan application.
Offer collateral to the money house
Every bank is legally obliged to check the creditworthiness of the prospective customer. If she does not do this, she will be punished. The goal is to protect people from over-indebtedness, because with the pressure of money many bad things can happen.
Therefore, you will not get a loan without a credit report. If you have negative entries in credit reports, you should convince the bank that you are willing and willing to pay. Offer additional collateral. A surety is also welcome, but this one should also have a corresponding credit rating.
Typical collateral for a loan are:
This can be, for example, a home savings contract or life insurance. Perhaps someone from the family or relatives can also stand in as a guarantor so that the loan is secured in the event of insolvency.
Before issuing a loan, every bank wants to keep the risk of getting the borrowed money back as low as possible. The more collateral the bank offers, the higher the chances of getting the desired loan. For this purpose, the bank should also be given insights into the financial situation, here pay slips and account statements can help. Of course, these documents are carefully checked and screened by the bank. If the income situation is stable or if a guarantor can stand in for the loan, the chances of getting a loan are quite good.
Companies with dubious loan offers often advertise, so be careful here. The following points should be noted:
- A loan for everyone with low interest rates usually doesn’t match. Each loan is calculated individually based on credit rating.
- Never pay credit documents in advance or cash on delivery.
- Residual debt insurance is usually very expensive and should be avoided.
- Avoid paying home visits or expensive telephone hotlines
- All facts for a credit information must be visible, including the term, debit and effective interest and, if necessary, an example calculation.
Credit without KSV – there is no such thing! At least not with Austrian banks
Loans that come without the KSV do not exist or are dubious (keyword loan shark). So watch out for offers that think there is a loan without a credit report.Another option to get a loan or funding is through private donors. Perhaps there is a person in the private sphere who would be willing to provide a certain amount. The repayment with interest due can be individually agreed. In any case, written documentation should take place here.
Another option would be to visit a pawnshop. Here, valuable items from your own possession can be monetized for a certain time. The pawnshop checks the value and pays the money in cash. As long as the respective item remains in the pawnshop, a corresponding fee must be paid.