Anyone who wants to take out a loan, faces a variety of offers, because a loan can be taken not only at a bank or savings bank on the ground, but also on the Internet. The latter option has the advantage that you are not tied to the opening hours of the bank and that a loan application can often be processed very quickly. The credit check on the Internet is standardized in many cases and completed within a few minutes.
Credit comparison – preliminary considerations
There are several comparison portals that can provide a good overview of the current loan offer. It is advisable to use a loan calculator. In advance, you should think about the following points:
- How much money do I need?
- What maximum monthly repayment rate can I pay?
- What collateral is there?
- What should the money be used for?
- What is my credit rating?
- What is the maximum interest rate?
Select credit – use credit calculator
A loan calculator is very easy to use. You only have to fill in the fields provided for the loan amount, the duration and the installment amount. Eventually, further information is required. After that you can click on a button to calculate and get all the credit offers that are listed for you. It is usually the case that the lowest-priced offer leads the list. If you have found a suitable loan or are interested in several offers, you can obtain more information on the website of the respective credit provider. To simplify this process, direct links are usually set from the comparison portals to the credit providers.
Interest – term – creditworthiness
When you repay a loan, you will not only have to repay the loan amount you have received, but also the interest and any incidental costs. These components are the basis for the monthly loan installment. It is above all the interest rates that are subject to large fluctuations. The general market interest rate has a considerable influence here. In addition, the conditions of the bank or savings bank as well as other factors such as the personal creditworthiness of the borrower are decisive.
There are loans that are credit-dependent and there are loans that are credit-independent. For credit-based loans, there are big differences between the loan rates for individual borrowers, because they depend largely on their credit rating. For example, creditworthiness-based loans are particularly worthwhile for people whose credit ratings are rated as very good or excellent by the banks, while those with a medium or just sufficient credit rating are generally better served with a credit rating-independent loan. The question of which credit option is better can not be answered in a general way. In any case, a credit comparison should be made here.
Installment loan or consumer credit
Most loans offered by the banks and savings banks are freely usable installment loans. They can be used to finance larger purchases or repairs or to reschedule existing ones. A proof of use does not have to be presented to the lender. The most important feature of an installment loan is the immediate disbursement of the entire loan amount after the loan application has been approved. The repayment must then begin at the agreed time. Uniform monthly loan installments must be repaid over the entire term. They are usually confiscated either on the 1st or the 15th of the month.
Many banks offer their customers the opportunity to make special repayments or repay the loan ahead of time. In these cases, however, attention should be paid to whether and in what amount additional costs are due.
The question is particularly important when a consumer loan is replaced by a new loan or when several old loans are to be combined into a new loan. Any savings in costs and interest due to a new loan can certainly be canceled out by a high prepayment penalty from the previous bank.
Whether a rescheduling worthwhile, you can learn through a loan comparison and the use of a loan calculator.
Special purpose loans include auto loans, real estate loans, construction loans and modernization loans. In addition, there are loans from furniture or furniture stores to finance consumer goods available in these stores, for example to finance a new kitchen or to finance living room furniture. Car dealerships also offer their own loans. The advantage of these loans are often low interest rates, which can reach up to a temporary zero-percent funding. Here, the consumer goods to be financed with the loan serve as collateral for the trader. They only finally become the property of the customer when he has paid them in full or has paid the last installment of the loan.
Car loans, real estate loans and other earmarked loans are also offered by many banks and savings banks and in part by insurance companies. Here, it is worthwhile to compare as many loans as possible, even with high loan sums even small interest rate differences have a significant impact on the total amount to be repaid for the loan.
Even though the loan conditions for the individual banks are very different and the conditions may vary, there are some basic requirements for the creditworthiness of the customer, without which no reputable bank or savings bank will grant a loan.
In most cases, you must meet the following requirements:
- regular income above the attachment exemption limit
- impeccable Schufa information
- permanent employment.
Other people, such as the self-employed, freelancers, housewives or students, may also be eligible for a loan. However, additional collateral such as a guarantee is required here. Pensioners may also find it difficult to obtain a suitable loan, especially if they have exceeded a certain age limit set by the bank. This is true even if their pension is sufficiently high. Here is the risk that they will die before the loan is repaid, for many banks too big. However, blanket statements can never be made. It is advisable in each case a credit comparison for more information.
Loan application and loan approval
You can apply for a loan on the internet. This is possible around the clock and from anywhere. There are also prepared forms that you can find on the websites of the individual banks. These forms must be completed and sent with the required documentation to the address indicated. To determine your identity, either the PostIdent or the VideoIdent procedure is necessary. More information can be found on the website of the lending bank. Once the documents have been received in full, you will be checked immediately. Often, this can be done very quickly, so that in many cases you can get loan approval after just a few minutes or a few hours, provided all the requirements are met. The payment of the loan is regulated just as fast. It is possible by bank transfer to an account of your choice or by cash payment. However, the latter variant is not offered by all banks. Once you have received the money, you can use it as planned.