Living without credit rating: Cost traps and prepaid ways out

Several million (credit rating) consumers in Germany suffer from the burden of a negative payment history: a negative Schufa entry makes everyday economic transactions impossible. Banks not only categorically refuse any credit: Even a current account can only be obtained with difficulty if you are on the 'sinners' list of Schufa.

Especially the renunciation of account, card and Co. is practically impossible today: Cashless payment has been eliminated from everyday consumer life in the 21st century. It is no longer possible to imagine the 21st century without. The search engine, however, quickly finds countless offers that promise a way out of the dilemma: prepaid credit cards are offered as well as current accounts on a credit basis or credit free of information.

Beware of financial products without credit checks: they can be expensive

But beware: not everything that is "without Schufa" is also good. The rapidly growing market for financial products without credit checks holds cost traps galore. With a little product research, it quickly becomes clear that inexperienced consumers – possibly in a pressure situation – are to be asked to pay heavily.

"Loans without a credit report" are practically unavailable, even if advertising promises otherwise. Although are over some credit mediators in fact information-free loans to 3.500 euros to have. However, the loan is then granted by foreign banks, which do not query the Schufa database, but carry out a very strict credit check. If you pass this without misrepresentation, you can usually help yourself otherwise.

Providers who advertise with "loans for the unemployed," etc. advertise, collect addresses, which are sold to dubious suppliers. From such offers strictly distance is to be taken.

Fair prepaid offers for cashless payments

When it comes to payment products, you can find a variety of offers, among which some offer reasonable conditions. Among the providers with fair conditions are Postbank, Dresdner Bank and Landesbank Berlin Brandenburg.

In principle, there is nothing wrong with prepaid credit cards in particular: These are ordinary Visa or Mastercard credit cards whose credit limit is limited to a credit previously transferred to the card account.

Watch out for fees: Cash withdrawals in particular are expensive

Some of the offerers take however horrendous fees, which are with nothing to be justified: 70 to 100 euro annual fee – which are to be paid in advance – are no rarity.

In addition, there are often very high fees for cash withdrawals from ATMs: Between four and six euros per withdrawal are due. Depending on the provider, additional fees may be charged for deposits to the card account and when the card is used for cashless payments.

Many of the prepaid credit cards are also offered in conjunction with a current account, which allows participation in the transfer of funds. The accounts are also only managed on a credit basis and are often blocked for outgoing direct debits.

Such accounts are provided even with negative credit records and without proof of income, and are therefore basically useful for people with low credit ratings. However, no offer can be found that eliminates the high cost of cash withdrawals with a credit card. As permanent solutions the offers are suitable therefore only in the emergency.

Conclusion: "barrier-free" participation in everyday economic life is largely possible even with a weak credit rating. It is however – as hardly differently to expect – very expensive, because the offerers want to have paid their risk well.

Update: Since 1. July 2010 it is possible to keep the own current account as seizing protection account (P account) with its bank, if certain conditions are fulfilled for it. It is then a certain base amount z. B. 985.15 euros per month for single people without maintenance obligations exempt from garnishment. This allows the debtor to meet his payment obligations such as z. B. pay rent, electricity and telephone. Under the old legal situation, a garnishment led to the fact that payments could no longer be processed through the account.