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5 tips for the right installment loan

For almost 140 years, banks in Germany have been reputed to be the perfect partner for private individuals in matters of investments and financing. The installment loan was considered one of the best loan offers for the middle and lower classes on the German financial market at all. But in the years 2009 and 2010, the success story came to a sudden end. Lenders took over banks and replaced the traditional bank with the exception of one branch. With him also the installment credit disappeared from the face of the earth. The instant loan has followed its footsteps.

 

5 tips for the right installment loan

1. Short or long term: Available- vs. installment loan

installment loan

Depending on whether your purchase just overextends your budget or whether this will be the case in the long term, it is worth considering which form of credit is the right one: overdraft or installment loan. An overdraft facility, ie an overdraft facility for a checking account, is often twice as expensive as an installment facility. Therefore, it is advisable in any case to check whether the account is now overdrawn for a longer period and it therefore makes sense to apply for an installment loan. Useful tip: If you use your overdraft facility on a regular basis anyway, rescheduling on a cheaper installment loan offers a lot of savings potential.

2. The tip of the balance: the condition comparison for the installment loan

installment loan

If you have decided on an installment loan, it is always worth comparing the conditions of different institutes before applying. Some providers lure with an “asterisk offer”. This only applies to a restricted group of people with very good creditworthiness, a certain loan amount and term and is therefore probably a few percentage points from your current interest rate. In general, the interest quantifies the price of your loan. Always compare the effective annual interest rate: it includes all costs for the loan and is therefore the ideal basis for a quick comparison. Also pay attention to an identical term and loan amount when comparing different offers: This is the only way the comparison is meaningful.

3. Creditworthiness matters: the Credit Bureau Score

3. Creditworthiness matters: the SCHUFA Score

Most loans are credit-dependent: This means that the credit institution uses your personal data to determine the probability that you will repay the requested loan. As a rule, the bank receives the information for this via Credit Bureau (abbreviation for “Protection Association for General Credit Protection”). This credit agency collects the credit-relevant data of the Germans in order to make them available to banks and commercial companies. The higher your likelihood of repaying the loan and the lower the default risk for the bank, the higher your Credit Bureau score and the better your credit rating. Important: The higher your credit rating is, the lower the interest rate that is usually offered to you. It makes sense to regularly check and, if necessary, correct the data that Credit Bureau holds about you. You can arrange both on the Credit Bureau website.

 

4. Pay attention to the correct wording: Use “Inquiry loan terms”

loan terms

Every credit request is forwarded to Credit Bureau. Too many inquiries have a negative impact on your score and thus on your credit rating. The reason: Credit Bureau then assumes that you make so many credit inquiries because you are always rejected. It is therefore important to explicitly advise the clerk to make a so-called “request loan terms”. Because this type of query is deleted after ten days and therefore does not affect your Credit Bureau value.

5. Everything at a glance: Plan your financing request realistically

financial loan

Whether you or your customers want to buy a new car, finance a modern kitchen or plan a debt rescheduling – your loan amount and the monthly installment should be tailored to your life situation. Clean up and compare all your income and expenses. This is the only way to get a real picture. For example, when rescheduling a debt, it is important not only to replace the old loans, but also to take account of credit card debts and overdrafts. It is also important that you can pay the monthly installment over the entire term.

Cheap installment loans

 

 

If you value special service and guaranteed low interest rates for your installment loan, you have come to the right place: numerous victories and podium finishes in tests by renowned institutes.

Whether installment loan, car loan, debt rescheduling, energy or civil servant loan: You can easily secure your cheap financing online with our loan application. We compare the interest of all relevant providers free of charge and make you a non-binding proposal at optimal conditions. Benefit now from our first-class advice from our installment loan specialists.

    Effective interest and debit interest: Why the comparison of installment loans is not always easy

    Effective interest and debit interest: Why the comparison of installment loans is not always easy

    The current loan conditions depend on the desired loan amount and the term of the installment loan. In principle, the longer the term, the lower the monthly charge. The decisive factor when taking out an installment loan is the interest rate at which the bank lends you the money. This represents, so to speak, the remuneration that you, as a borrower, pay for the borrowed money. The so-called “borrowing rate” remains constant over the entire term. However, the borrowing rate is not suitable as a comparison criterion for an installment loan because it does not include all credit costs.

    In contrast to the borrowing rate, the effective interest rate takes into account other factors that determine the cost of an installment loan. In addition to the borrowing rate, it includes interest clearing dates and payment rates. Processing fees for loan agreements have not been permitted since May 2014.

    You can use the effective interest rate to compare installment loans with the same term if all price-determining factors are identical except for the debit interest rate.

    However, the comparison is complicated by a number of other costs that are not included in the effective interest rate. We therefore recommend that, in addition to the effective interest rate, you also carefully examine the other costs for the installment loan you want and contact our experienced installment loan specialists. We will be happy to advise you and are guaranteed to find the cheapest offer for you.

    Creditworthiness decides on the cost of the installment loan

    Creditworthiness decides on the cost of the installment loan

    The offer for an installment loan varies depending on the creditworthiness of the applicant. Your credit rating gives the bank information about your solvency. It is determined by private credit agencies. Your personal credit score includes a variety of factors, such as existing financial burdens, your assets, family and living situation or your professional background. On the basis of these points, Checker creates your credit rating, which shows how risky it is for the bank to grant you a loan. With a good credit rating, the offer for the installment loan will be cheaper than with a poor credit rating, as the bank takes less risk of default.

    Small loan comparison without Credit bureau.

    The Internet makes it possible to get a small loan without Credit bureau. Normally, information is requested from Credit bureau for every credit request. If it is OK, so it has no negative characteristics, there is nothing to prevent a loan approval.

    If Credit bureau reports negative information, a loan application is usually rejected. But there are also small loans without Credit bureau, for which Credit bureau information is not requested. For a credit approval, only the income and the employment relationship are checked. A small loan comparison without Credit bureau provides the right provider.

    Guarantee the best conditions with a credit comparison

    Guarantee the best conditions with a credit comparison

    When comparing small loans without Credit bureau, the loan seeker should pay attention to the interest rate level. When it comes to interest rates, the greatest differences between the individual loan providers are visible. The focus should be on the target and effective interest rates. The borrowing rate is fixed and is independent of the loan amount, the term and the fees. It looks different with the effect interest. The amount of this varies, and it also includes various factors.

    The term and loan amount represent certain risks that can be found in the effective interest rate. The income of the loan seeker also has an impact on the effective interest rate. The higher earners have better chances of a low effective interest rate. In the case of a small loan that is granted without Credit bureau information, only the income is taken as the loan security.

    The Internet makes a small loan comparison possible without Credit bureau

    The Internet makes a small loan comparison possible without Credit bureau

    The loan seeker can look for a small loan comparison without Credit bureau on the Internet. Numerous finance portals provide a free and fast provider comparison with several offers. The exact entry of income, use, loan amount and term makes the exact restriction and reveals the cheapest financing option. Customers should make sure that it is really a credit comparison that is not subject to Credit bureau information, nor does it require personal input such as address and name.

    For applicants with poor credit ratings

    For applicants with poor credit ratings

    It is particularly important to differentiate between reputable providers and black sheep. The credit intermediaries who provide loans from Switzerland can be called serious. The Credit bureau query criterion is excluded, but proof of adequate income is required.

    Many providers place a loan without a Credit bureau query on the Internet. The credit terms and conditions are different. Therefore it is interesting to carry out a loan comparison. By comparing different providers, a small loan without Credit bureau can result in efficient financing.

    Mortgage credit: the crush on banks for couples.

    Almost 70%! This is the percentage of borrowers who make a couple real estate purchase. A high proportion which clearly indicates that banks more easily finance two-person acquisition projects, without necessarily having gone before the mayor or the priest beforehand. In fact, only half of them are married. In this context of rising prices, it is indeed easier to borrow for two … It must be said that for banks, these profiles are also more attractive because they are considered less risky and more profitable. With a higher strike force, couples benefit from more advantageous conditions and sometimes less demanding eligibility criteria, testifies financer.

    Nearly 7 out of 10 buyers are in a couple!

    Nearly 7 out of 10 buyers are in a couple!

    With financer, 68% of borrowers are in a relationship … but this figure rises to 70% among 40-49 year olds and even 73% among 30-39 year olds. Even those under 30 are 57% to buy as a couple.

    “Buying a property is often a two-person act, as part of building a couple’s life, but also, for financial reasons. At two, the incomes are higher, which allows the couple to have a greater borrowing capacity and therefore to access the property more easily, when a single salary is not always enough … “explains Jerome Robin, founding president of financer.

    64% single borrowers earn less than $ 2,000 net per month, while 80% of couples have monthly net income greater than $ 2,000 … “On the other hand, buying as a couple does not necessarily mean being married … There are even today as many couples who buy without being married as having formalized their union, which was of course not the case with the generation of our parents and grandparents… ”he adds. .

    Married, cohabiting or civil partnership

    Married, cohabiting or civil partnership

    In fact, half of the couples buy without having gone through the stage of marriage: 35% of the borrowers are married whereas they are 33% to buy without being: 22% are in cohabitation but only 11% are married. For many couples, the act of buying two is more engaging than marriage.

    In addition, 51% of borrowers have no children when buying… Real estate purchases often take place before the construction of a family for first-time buyers, but it is also the time to buy larger for those who are already homeowners because 42% of borrowers have 1 or two children.

    Passionately, madly… not at all

    Passionately, madly… not at all

    Only 8% of borrowers buy while divorced or separated … While following a separation, it is always necessary to relocate, unfortunately it is often not possible to buy again. It must be said that this transition period often characterized by economic fragility does nothing to reassure banks. Rental is often preferred at first, while waiting to find a balance and rebuild on a personal and financial level.

    Singles: double punishment

    Passionately, madly… not at all

    No doubt couples remain privileged by banks … In the current economic context, it is now easier to borrow as a couple than alone. This is what emerges from the study of the banks’ eligibility criteria. First of all, the income requested from a single person is often proportionately higher than that required from a couple. In a bank for example, a single person must have a minimum annual net tax income of $ 20,000 to obtain credit, compared to $ 35,000 for a couple. In another, to benefit from the lowest rates, incomes must exceed $ 35,000 for a borrower but “only” $ 50,000 for a couple, or in a third establishment, they must reach $ 60,000 for a single person but 80 $ 000 for a couple… Another national bank does not even take into account the marital status of the borrower: to benefit from the lowest rates, income must reach more than $ 90,000, whether borrowed alone or in pairs .

    Stay-to-live demanded proportionally lower than two

    Stay-to-live demanded proportionally lower than two

    It is the same for the “remainder-to-live” (the share of the income that remains in the household to finance current expenses once the loan charges have been paid and deducted from the taxes for certain banks) which is proportionally more low for a couple… It is a determining criterion for banks, almost as much as the debt ratio… In one of them, it must be at least 700 $ for a single person but 800 $ for a couple. In another bank, the rest-to-live must be at least $ 750 for a single person but $ 1200 for a couple (and $ 250 per dependent child). A third request 670 $ for a single person, and 1000 $ for a couple.

    Unity is strength

    Unity is strength

    “Couples are prime customers for banks. When they buy together, they often have more contributions, but above all higher incomes which will give rise to a double domiciliation of wages, with the opening of two bank accounts – even 3, if there is an account. joint – and the subscription of livret A, PEL or life insurance in future years, at the birth of future children … In addition, some banks recommend couples to take out loan insurance at 100% on each head, which can double the amount of the monthly premium. Finally, when there are two borrowers, the risk of job loss in particular and non-repayment of the credit does not rest only on one person, which further secures the project in the eyes of the banks… ”, explains Sandrine Allonier, responsible for bank relations at financer.

    Couples, undoubtedly “bank darlings”

    Couples, undoubtedly "bank darlings"

    This is why couples often benefit from the best rates… In the financer barometer of “Bank favorites” published at the beginning of February 12 profiles out of the 14 who obtained the lowest rates are couples, because their income more easily exceeds 5000 $ two, or even $ 8,000 two. In Nantes for example, a couple of first-time buyers of 35 and 37 years old obtained in January for a loan of 400,000 $ a rate of 1.20% over 20 years (to compare with the average rate over 20 years: 1, 60%) with $ 8,000 in income for two and $ 40,000 in contributions.

    Increase installment loan: is that possible?

    Yes and no. As a rule, you cannot easily top up a recently taken out loan because banks have set up a kind of lock for such cases. After a certain waiting period, however, it is possible to get a new loan amount from the bank.

    In addition to topping up, there are other ways to increase your loan size.

    In addition to topping up, there are other ways to increase your loan size.

    Let’s take an example situation as a basis: three weeks ago, a borrower took out an installment loan of 5,000 dollars to renovate the lower floor of his home. In addition, he would also like to treat himself to a new dining area, a few great lamps and a new corner sofa. In the frenzy of the renovation work, the borrower realizes that he has made a mistake. The 5,000 dollars are not enough. He needs 7,500 dollars.

    After such a short time, his bank will probably not increase his loan. If you need money again after a few weeks, it is a sign for banks so shortly after applying for a loan that you do not have your finances under control. So that you do not become over-indebted and the bank will get your money back safely, you will probably refuse to top it up. Most banks are blocked for six months until they provide you with additional funds. Then you can try it again.

    What options or alternatives are there

    What options or alternatives are there

     

    However, the bank’s approach does not change the bottleneck of our example borrower. The borrower still needs 2,500 dollars more than planned. To increase your credit anyway, you have the following options:

    1. Take out a second loan: For example, you can take out another loan from another bank to close the funding gap. Your creditworthiness will be checked again for this. In this case, however, you should be aware that your credit check score can suffer and be reduced. Because if you take out two loans from different banks within a short period of time, credit check evaluates this negatively. At credit check it can be given the impression that you are living your life on a pump and that you are in a difficult financial situation. Therefore, it downgrades your credit rating.
    2. Debt the loan: You could also debit the insufficient credit and increase it by the missing amount. You always have a four-week notice period for consumer loans. You could thus trigger the insufficient credit with a new, higher credit. A debt rescheduling is particularly worthwhile if you have other loans – such as an overdraft facility – in progress. So you can put all liabilities on a single loan and then pay only one installment to a bank. A debt rescheduling of several loans often has a positive effect on your credit check, as it shows that you want to get your finances in order.
    3. Rethink your plans: A further and probably the most unsatisfactory alternative would be to rethink your plans and reduce them if necessary. Of course, you can only do this if you do not really need the loan. Our example borrower might think about whether it really has to be the expensive corner sofa or whether he can save on his renovation plans in one place or another? This alternative does not have a negative impact on your credit check, nor does it increase your debts with the bank.

    So if you find yourself in a situation similar to our example borrower, you have a few options to get out of this situation. Our installment loan specialists will be happy to help you and find a solution together with you.

    Borrowing money on the weekend on Saturday is possible.

    Different ways to get money quickly on the weekend on Saturday, also for you!

    Different ways to get money quickly on the weekend on Saturday, also for you!

    If you want to borrow money quickly on weekends like on Saturdays and you need a few tens or maybe a few hundred USD quickly, where can you go? You have to do your shopping urgently or you want to go out with your friends. Or you stand in the Mediamarkt and see a super offer of a plasma TV that only applies today. These are the moments when you want to borrow money on Saturday. This article lists the options that you have.

    1) Borrow from family and friends

    You can ask your friends or family to borrow money. The advantage is that you do not have to pay interest. The disadvantage is that your personal relationship with your family or friends will come under pressure if it appears that you cannot pay the money or cannot pay it on time. If you do pay on time then there is nothing wrong. It is often the case that the principle ‘for what hears what’ applies.

    2) Pawn your things

     

    You can pledge your things at various properties in the Netherlands (also known as borrowing things). Some are also open on Saturdays. This means that you sell your property, get money for it immediately, and have the right to buy back your property within a certain period. You can pledge various goods, such as cars, jewelry (gold, silver, diamond), electronics (your TV, camera, mobile phone). This option is also commonly referred to as ‘borrowing with collateral’. The disadvantage is that you get your money immediately. The disadvantage is that you have to look for a property. It may be that this is not close by and that you have to travel a long way, which also costs money.

    3) Take out a mini loan.

    This is an emergency loan that you can also take out on Saturday with some lenders. For example, one of these providers is Cashbob.

    The principle works easily. You go to the website of such a mini-loan provider, you send some personal details, you send an SMS and you immediately hear whether your application has been approved. The money is transferred to your account within 10 minutes. You can usually borrow up to 750 USD. An additional advantage is that there is no BKR check. So if you already have debts or are in the BKR because you were unable to pay your telephone bill a few times in the past, then there is a good chance that this is not a problem for getting a mini loan.

    Conclusion:

    Sometimes you have to get money quickly during the weekend and you want to borrow money somewhere quickly. Fortunately there are options to get money urgently on Saturday. If you do not want to damage your personal relationships, it is best to pledge something from yourself or borrow the money from a lender.