Loan Rejected in Germany? Here Is What to Do Next

Ask the bank why and check your Schufa

German banks have to tell you the rejection reason if you ask. Call or email them. Then request your free Schufa report at meineschufa.de (one free Datenkopie per year). Check for errors: wrong addresses, debts already paid, or entries that belong to someone else. Schufa errors are surprisingly common for foreigners.

Fix the specific problem

Each rejection reason has a different solution. Negative Schufa? Dispute errors and pay off outstanding debts. Income too low? Add proof of side income or request a smaller amount. Still in probation (Probezeit)? Wait until it ends, usually after 6 months. Residence permit too short? Apply for a loan term within your permit duration.

Try a different lender type

Do not reapply at the same bank. Every formal application adds a Kreditanfrage to your Schufa, which lowers your score. Instead, use a comparison tool that sends Schufa-neutral inquiries (Konditionsanfrage) to check multiple lenders at once. Different banks, different criteria, different results.

Build your Schufa before reapplying

Open a German bank account, get a free credit card, sign a postpaid phone contract. Pay everything on time. After 6-12 months of positive credit history, your score improves. Since January 2025, debts paid within 100 days are deleted from Schufa after 18 months instead of 3 years.

Keep your debt-to-income ratio below 35-40%

Banks want your total monthly loan payments to stay below 35-40% of your net income. Pay down existing debts before applying again. Even freeing up 100-200 EUR of monthly capacity can tip the decision.

Never pay upfront fees for a loan

According to the Verbraucherzentrale, they know of no case where a loan was actually paid out after an upfront fee was collected. Legitimate lenders charge fees only after disbursement. If someone asks for money before giving you a loan, walk away.