Deposit credit | Take out a loan


Deposit loan – deposit guarantee or would you prefer to take out a loan? The dramatically increased rents cast their shadows before moving in. A three month rent deposit is no longer an exception. “Where to get from, if not to steal” is not the only question facing young people who are moving into an apartment for the first time.

Deposit credit – the possible sources

Deposit credit - the possible sources

The rental deposit can be fed from various sources. The deposit guarantee of large insurance companies is primarily advertised as a surety loan. Instead of depositing a deposit, they guarantee liability to the landlord. The insurance companies are involved in the event of a possible loss of rent as well as in the event of damage to the rental property. A bank’s guarantee works in a similar way to insurers’ offers.

The most common method of paying a deposit, however, is still financing via credit. It would be possible to use the previous deposit and exhaust the overdraft facility. With the development of rental prices in recent years, however, an ordinary overdraft facility is hardly enough. For this reason, an installment loan is increasingly being used for the deposit.

Advantages and disadvantages of the insurance guarantee

Advantages and disadvantages of the insurance guarantee

The biggest advantage of a deposit guarantee for the tenant is the moderate monthly insurance premiums. In addition, his deposit is not in danger if the landlord goes bankrupt. A disadvantage is the low acceptance of the landlords, who prefer cash payers. It should not be forgotten that a security deposit can never be paid off by the insurance company. The insurance premium runs until the end of the contract, usually the move. Despite constant monthly payments, no money was saved for the next deposit. The guarantee only postponed the problem of having to pay a high rent deposit.

For an experienced landlord, the insurance guarantee is a red flag. In the event of damage, he will likely have to deal with the insurance company’s lawyers. In the end, even if he gets money, going through the instances is full of risks. In addition, he cannot let the rent deposit work for him to save interest.

One reason for the high rents of the present are the insulation and renovation measures required by law. The tenant is now saving heating costs, but the landlord had to dig deep into his pocket. The three monthly rent deposit helps him to reduce his interest burden. Acceptance of the guarantee means for landlords only an increased litigation risk and loss of interest of often several hundred USD a year.

Installment loan for the deposit

Installment loan for the deposit

An installment loan for the deposit can only be a disadvantage if there are already existing creditworthiness problems. Then it is harder to get it at low interest rates.

With the installment loan, the tenant has the advantage of being a cash payer of the deposit. This ensures the first good impression at the landlord. In addition, other relocation costs, combined in one loan, can be co-financed. Each installment loan as a deposit loan is paid off once. However, the deposit remains intact and thus becomes a savings cushion for the future.

Loan from abroad


A foreign loan is a loan that is brokered by foreign banks. As a rule, the loan seeker must contact a credit broker. The credit agencies located in Germany work with foreign partners and broker a loan from abroad.

Most loan seekers who are interested in a foreign loan have anomalies in their Credit Bureau file. Such entries are made if installments have not been paid, cell phone bills have been forgotten or department store bills have not been paid. Canceled loans, bankruptcies and oaths of disclosure are also noted in the Credit Bureau. Since every German bank queries Credit Bureau before a loan is issued and receives information from Credit Bureau that negative entries are present, the loan will be rejected.

The risk of default is too high for the banks, the creditworthiness has suffered from the entries. A loan from abroad is often the last chance for a loan seeker to make money. A loan from abroad is not affiliated to a German Credit Bureau, and no loan granted is entered in the same. Under certain circumstances, a loan seeker can get a loan from a German bank. However, other loan safeguards such as real estate or life insurance must then be provided.

The foreign loan and the prospects

The foreign loan and the prospects

Even civil servants or employees who have a good income and have no Credit Bureau entries are interested in a loan from abroad. It is not only important that this loan is not entered into Credit Bureau, but a loan from abroad can be used as a second loan, an anonymous loan that neither Credit Bureau nor the bank notices. In many cases, this approach is used by people who want to carry out a larger financing project and who are hoping for good interest rates because of their creditworthiness. Because in the case of a civil servant loan in particular, it is required that all existing obligations be repaid and combined into one civil servant loan. This is the reason why the loan from abroad is very popular, it is better known under the name Swiss loan.

Of course, a foreign loan is also not granted without restrictions. There will be no credit check by Credit Bureau, but the credit check will still be carried out. To be able to choose a foreign loan, you must have sufficient and regular income. An open-ended employment contract is also mandatory, and you must also be of legal age. The loan amounts are limited to two amounts, firstly 3,500 USD and secondly a maximum of 5,000 USD.

The conditions for a foreign loan

The conditions for a foreign loan

The conditions that show a loan of $ 3,500 (as of June 10, 2014), repayable in 40 installments of $ 105.40, the total loan amount is $ 4,216.00, the effective annual interest rate is 11.27%. For a 5,000 USD loan (as of 10.6.2014), repayable in 40 installments of 150.55 USD each, the total loan amount is 6,022.00 USD, the annual percentage rate is 11.26%. For example, if you now want to take out a 5,000 USD loan, you must have a net working income of 1,600 USD and that for a single person.

In addition, many foreign banks have an age limit stating that an applicant must be 18 years old and no older than 58 years. The income for a loan from abroad must be above the garnishment exemption limit. This form of credit is secured by assignment of wages. If there are payment defaults, the garnishment is carried out immediately. If you want to avoid this embarrassment, you should pay back this loan particularly correctly. Hartz IV recipients and the unemployed are excluded from a foreign loan because they have no attachable income.

The reputable credit broker

The reputable credit broker

The loan from abroad is only offered by credit agencies. A loan seeker should not fall for the brooding slogans of some intermediaries. A reputable credit broker will only charge its fees once the loan approver and the money have been received by the loan seeker. The reputable methods also include the disclosure of all costs, such as the loan amount, the term, the interest rate and the rate. Placements that work particularly correctly also provide a sample calculation of how high the loan will ultimately be.

With all warnings about dubious credit intermediaries, a foreign loan is the last resort for many people to get the financial situation in order or to carry out a small debt rescheduling. Loan seekers often order in different department stores and a considerable sum comes together. This could be converted into a loan with a foreign loan, which may reduce the installments to be paid.

Loan installment payment: debit from current account or postal payment slip?

When applying for a loan, you must decide whether to pay the monthly installments by debiting a current account or a postal payment slip. The spontaneous questions are: which one to choose between the two? Which is the most convenient in terms of practicality and “risks”?

In this article we will explain what is the current account debit, the postal payment slip, what is the difference between the two payment methods and which is the best.


Debiting a loan to the checking account

loan to the checking account

Until a couple of years ago, the Rid, Direct Wisebank Relationship was used to charge installments on a current account. In practice, the debtor authorized his bank to accept the debit requests from the credit institution in which the loan was requested to allow the institution to automatically withdraw the monthly amount of the installment.

The payment of the installments of a loan is currently made through a Sepa debit. In this case, unlike the payment via Rid, you authorize the credit institution to withdraw the monthly installments of the loan directly from the current account.

The SEPA debit of the installments of a loan on the current account has numerous advantages:

  • You don’t have to remember every month to make the payment and therefore risk forgetting it. If you delay the payment of the installments of a loan, you risk being reported in credit information systems such as Crif;
  • The bank makes the payment automatically every month
  • You are exempt from stamp duty payment
  • It is a safe system
  • You can revoke the payment by debiting a current account at any time

If you decide to pay the installments of a loan by debiting a current account, you must be careful to always have the amount of the installment available every month to avoid finding yourself with the red account.


Payment of a loan by postal payment slip

loan payment

If you decide to pay the installments of a loan by postal order every month you will have to go to the Post Office, to the authorized ticket offices or connect to the internet banking service. This payment method allows you to have under control the available finances. The disadvantages instead are manifold:

  • You risk forgetting to pay the installment or pay it late, as a result, being reported in credit information systems
  • For each payment made you must incur an additional cost 
  • You have to pay every month.


Debit on current account or payment by postal order?

loan payment by postal order?

As we have seen, between the two methods it is more practical and convenient to charge a loan on a current account. If, on the other hand, you request the assignment of the fifth of the salary or the assignment of the fifth of the pension, you do not need to choose one of the two methods. The monthly installments of both assignments are withheld directly from the salary or pension and therefore you do not risk forgetting to pay the installment or not having enough money on the current account.

Discover all the advantages of the transfer of the fifth of the salary and all the advantages of the transfer of the fifth of the pension!