Loan without KSV - what you need to look out for when financing

WHAT IS A LOAN WITHOUT KSV?

The majority of lenders in Austria check the data from the KSV before granting a loan. If a loan is offered without KSV, there is no check of credit history or creditworthiness.

WHAT DOES KSV MEAN?

KSV stands for the word Kreditschutzvereinigung. It is an Austrian credit reference agency that collects and stores data on the payment behavior of individuals and companies. If you always meet your financial obligations on time, this leads to positive KSV entries. However, if you have problems repaying loans or paying bills, this will lead to negative entries in the KSV.

A loan without KSV is therefore particularly suitable for people with negative entries, as these can lead to a rejection of a desired loan in the worst case.

Where can I find out which of my data is stored in KSV?

You have the right to receive "information in accordance with Art. 15 GDPR" about your data stored in KSV once a year free of charge. You also have the option of having incorrect data corrected or deleted.

WHAT REQUIREMENTS DO I HAVE TO FULFILL FOR A LOAN WITHOUT KSV

If you want to take out a loan without a KSV check, many lenders require other collateral in order to grant you your loan:

• Age of majority: As a rule, you must always be of legal age to take out a loan. Many lenders also set an upper age limit for granting loans. Pawnshops are an exception to the upper age limit, as you are liable with collateral.

• Regular income from employment: This point is an important criterion for a loan approval, especially for banks. This is because you are generally in a position to pay regular loan installments.

• Bank account and residence in Austria: Most lenders require a permanent residence, Austrian citizenship or at least a residence permit and an Austrian bank account. Pawn loans can also be paid out in cash for up to EUR 9,999, so no bank account is required.

• Medium to good credit rating (except pawn loans): Even if there is no query in the KSV directory, your lender can assess existing loans or your general payment history. For pawn loans, your credit rating is not relevant for pay out.

• Collateral: In order to secure themselves, lenders can demand collateral such as real estate or insurance from you to minimize the risk. Pawnshops only require collateral from you.

• Intended use: As a rule, you must state what you want to use your loan for. Pawn shops are an exception here too, as your financial situation remains anonymous.

• Health: For long-term loans, insurance must generally be taken out to minimize the risk of possible payment defaults, e.g. due to occupational disability.

WHAT FORMS OF CREDIT CAN I CHOOSE FROM?

There are various ways to borrow money from a lender. It depends not only on the loan amount and term, but also on your personal situation. Think about what you need the money for and how long you will need to pay it back. Then choose which form of financing is best for you.

To give you a better overview, you will find an overview of various options below.

HOW DO I INCREASE MY CHANCES OF GETTING A LOAN WITHOUT KSV?

It depends on the provider. Banks attach great importance to a regular income from employment, while other providers are more flexible in granting loans. The most important thing for banks or private lenders is that you clearly state the purpose of the loan. For example, if you have a regular income, a loan restructuring with better conditions can be an understandable reason for banks or other lenders to grant you a loan.

Banks: To increase your chances of getting a loan without KSV from your bank, you should be able to prove that you have an open-ended employment contract as a salaried employee. As a self-employed person or freelancer, you should be able to provide proof of regular income. Professional liability insurance can also demonstrate your high sense of responsibility and risk management. Another option, regardless of income, may be a guarantee or, for example, real estate as collateral. If you can find someone who is liable for the risk of possible payment defaults or can offer a property as collateral, you increase your chances of being accepted.

Private loan: A KSV check is usually always carried out for a private loan. However, if you can prove that you have a stable income, a loan is often possible even with a medium credit rating. Collateral such as real estate or life insurance can also increase the chance of approval. In this case too, a guarantor or even a co-borrower would significantly increase the likelihood of approval.

Take out apawn loan: If you own collateral such as luxury watches, designer bags, gold, electronics or a car, you can take out a pawn loan for part of the value of your item.

HOW CAN I FIND REPUTABLE PROVIDERS FOR LOANS WITHOUT CSV?

There are many different comparison portals where you can check different providers. It's best to find out about your potential lender online:

• Pay attention to customer reviews or testimonials.

• The fees should be transparent.

• The contact information should be easy to find. Test whether the telephone numbers provided are valid.

• You have the option of checking UID numbers.

• A reputable loan provider does not charge any upfront costs before disbursing the loan.

WHAT CONDITIONS SHOULD I EXPECT?

Of course, it always depends on the provider, we will give you an overview of the various conditions below.

Runtime

The term of a loan without a KSV check is generally shorter, usually up to a maximum of five years. Pawn loans have a term of 1-3 months, but can be extended at any time.

Interest rates

With a loan without a KSV check, the risk for your lender is higher, which is why the interest rates are generally higher than with conventional loans.

Loan amount

Depending on the provider, it depends on your general financial situation or the requirements. With a pawn loan, you can usually get up to 70% of the value of your item paid out as a loan. However, if you have a regular income and can also provide collateral, a higher loan amount is also possible from the bank or a private loan provider. It also depends on the purpose of your financing.

IS THERE A LOAN WITHOUT A CREDIT CHECK?

A loan without a credit check - i.e. without proof of income and without a KSV check - is not possible with most lenders. Banks or private lenders want to minimize the risk of non-payment. It is rather unlikely to find a reputable bank as a lender without KSV or proof of income.

The situation is different with pawn loans. As you are not liable privately, but only with your collateral, no credit check is usually carried out. If you are unable to pay your loan, you only lose your collateral. Pawn loans are therefore considered loans without debt.

FREQUENTLY ASKED QUESTIONS AND ANSWERS

What is a KSV entry?

The consumer protection association - KSV for short - collects and stores information on loans and the payment behavior of private individuals and companies and provides information on this.

What do I do if I have negative KSV entries?

To get a loan despite negative KSV information, you can cite a guarantor, take out smaller amounts or take out a pawn loan, as the credit rating does not matter.

Is it possible to get a loan without a credit check?

Most lenders will check your financial situation in any case. Only pawnbrokers keep your financial situation completely anonymous.

How do I find out what credit rating I have according to the KSV report?

You can request your data once a year free of charge so that you can view it. You can find the link above in the text.

Why can professional liability increase my chances of getting a loan?

Potential lenders will see that you value security and handle your finances responsibly. This can increase your chances of being approved for a loan.