We describe what you should look out for when taking out a loan on the Internet, warn you about over-indebtedness and give you advice and tips on general loan handling.
We will tell you how the bank determines creditworthiness and why loans with credit-related interest rates are often better than its reputation. We also inform you about credit without Credit Bureau and publish articles that make it easier for consumers to make the right decision when it comes to taking out an installment loan.
Fundamentals of loans
If you intend to take out a loan, whether it is a car loan, an instant loan or a small loan, you should be economically able to repay the loan. The amount of the monthly installment to be paid is made up of a repayment amount and the interest component. Before the bank approves a loan and initiates payment, each bank checks the applicant’s creditworthiness. For a normal installment loan, a regular income and a positive Credit Bureau information are the prerequisites that must be met in order for the loan to be granted.
In order for the installments to be paid regularly over the entire term of the loan, it is important to keep the installment as low as possible within the scope of the freely disposable income. Basically, consumers should keep this in mind. Anyone who pays for themselves financially right from the start runs the risk of getting into debt and eventually having to go into private bankruptcy.
Reputable credit brokerage
The easiest and most convenient way to apply for a loan is to apply online at a direct bank or at a credit agency. Before each loan application, however, a free loan comparison should always be made in order to find the banks that offer the cheapest loan offers. You have to pay attention to whether the offers are based on creditworthiness or fixed interest.
For offers with interest rates dependent on creditworthiness you need a personal offer if you want to know how high the interest actually is. If you want to orientate yourself beforehand, it can make sense to use the representative example as a basis. The representative example shows the interest rate that two thirds of all consumers get.
A loan broker is only used if you want to apply for a loan without Credit Bureau. Credit intermediaries charge a commission for their service, which makes the loan correspondingly more expensive. You can usually do without this service.
What to do if the credit rating is poor
It is usually particularly difficult for consumers with poor credit ratings to get a loan from the bank. The banks are at risk that the loan will not be serviced in accordance with the contract and will ultimately be too high. Therefore, you usually need a solvent guarantor or you can use the offer of a credit brokerage and apply for a loan without Credit Bureau.
We hope you enjoy reading our articles, which may even add value to you.