Small loan with favorable conditions

There are many ways to get a small loan with favorable terms. Those who are not yet sure which bank is the right one should not be afraid to carry out a comparison on the Internet and pay attention not only to the possible loan amounts and terms, but also to the effective annual interest rate. The annual percentage rate in particular can be a decisive criterion when looking for a small loan with favorable conditions.

Requirements for lending

Requirements for lending

If you want to get a small loan with favorable conditions, you should have a good credit rating, a secure income and an impeccable credit bureau information. In addition, the income should be so high that it stands in a reasonable relation to the loan amount taken up. A small loan is always mentioned when the loan amount is between 500 and 5000 USD. The amount of the monthly repayment rate depends on the length of the term and the effective annual interest rate, which can be both credit-dependent and credit-independent.

Credit-dependent and credit-independent loans

Credit-dependent and credit-independent loans

Credit-dependent loans offer particularly favorable conditions for anyone who can demonstrate good, very good or excellent creditworthiness. If this is not the case, a credit-independent loan would be the better choice. Here the interest rate is the same for all bank customers, provided they are creditworthy at all.

Application, approval and paymento

Application, approval and paymento

A small loan with favorable conditions can be applied for either on the Internet or in a bank branch. If the lender is a purely internet bank that does not have a nationwide branch network, the latter option is not available. However, such a bank would have the great advantage that the interest conditions and the conditions for lending are usually particularly favorable. If the loan application has been received by the bank, it will be checked immediately. This includes not only obtaining credit bureau information, but also a thorough examination of all collateral that is relevant for lending.

If the credit bureau information is in order, the bank can provisionally approve the loan application and will provide the customer with a detailed message as to which documents it needs for a final assessment of the creditworthiness. As a rule, this will be the current proof of wages or salaries as well as the current employment contract. If the applicant is already a pensioner, proof of pension would be required.

If the bank concludes that it can approve the loan application, it will transfer the small loan to the customer’s checking account with favorable terms within a few days. A cash payment would only be conceivable in the very rarest of cases. The start of the repayment, the length of the term and the amount of the monthly installments are agreed individually.

Early repayment of financing: how much do you pay?

The early repayment of the loan is an operation that can be carried out in relation to the credit lines taken out in order to make personal, family and professional expenses. However, before approaching this kind of initiative, it is necessary to try to know what are the clauses and rules that underlie this possibility remitted to the debtor and, in particular, what are the economic conditions that regulate an eventuality of this nature. In other words, when it is possible to proceed with the early repayment of financing? And how much do you pay?

First of all, let’s remember how anyone who has taken out a loan has the possibility of being able to repay the sum obtained even before the natural expiration of the loan. The early repayment of the loan is therefore an alternative method of repayment compared to the ordinary one, which provides for the termination of the relationship through compliance with an amortization plan which provides for the gradual return of the capital and interest, according to the procedures established in internal of the contract signed with the lender.

 

The possibility of early repayment of the loan is not

loan payment

however, an extraordinary option granted to the debtor, on the contrary. In all loan agreements, in fact, the possible possibility that the debtor may pay off all or part of his debt prematurely is clearly stated, under conditions and characteristics that will be governed by the same contract.

In this context, it is of interest to find out what the cost of such an early repayment is. As regards mortgages, the burden was canceled by the so-called Bersani decree, which canceled the penalties for mortgages for the purchase or renovation of the first home. For other cases, including personal loans, the penalty continues to exist, although limited – in most cases – to 1% of the capital still to be repaid. Considering that there may be significant differences depending on the lender, our advice is to carefully consult the loan agreement signed.

As regards instead the method by which it is possible to proceed with the early repayment, we remind you that this is generally linked to a prior request to be made against your bank, in which you will indicate the date on which you believe you can proceed with the termination of the relationship: a preventive step that will allow the bank to calculate with certainty the total to be paid for the extinction of the credit relationship, and which also applies in the case of partial extinction (with the amortization plan that will continue in installments of a reduced amount, proportionally as extinct).

 

Early repayment of financing, How? 

loan repayment of financing

The payment of the residual amount can be made by bank transfer or, alternatively, bank draft or bank check. In this second hypothesis, however, it will be necessary (especially in the case of the bank check, while facilitations may be made for the circular) to wait for the time necessary for the bank to verify the solvency of the negotiated debt security.

However, it is given that each lender has different rules to that effect, if you intend to proceed to ‘early repayment loan is a good idea to discuss it ahead of time with your consultant and reference, below, follow the signs agreed.

Car loan despite further loans – fast & cheap

Nevertheless, a vehicle loan can rarely be put on the back burner. Families in Germany depend on the car.

 Car loan despite further loans – everyday business

In metropolitan areas, where the workplaces are, living space is priceless. In most cases, you drive to work every day with your own vehicle. Public transport is not suitable. Modern work often requires the flexibility not to look at the clock when needed.

Many also work shifts. The working day always starts and ends at different times. Without a vehicle ready for use, there is chaos. Everyday life gets completely out of joint.

Against this background, the decision is finally made to venture into a car loan despite further loans.

Credit despite ongoing loans – often not a problem

Credit despite ongoing loans - often not a problem

With existing credit obligations, most prospects fear they will not be qualified for additional credit. Right, there can be problems, but that’s not the rule. Loans paid on time have little impact on credit bureau’s credit rating. The proper score remains.

Basically, the old loans even show that the debtor keeps his promises to pay. The credit protection over the real value also speaks for the car loan despite further loans. Personal creditworthiness only has to guarantee the difference to the mortgage lending value. In other words, car loans can easily be approved even with poor credit ratings. Unfortunately, there is a risk that current payments and income will become unbalanced due to the additional credit.

What does the bank’s guidelines look for?

What does the bank

All banks and savings banks are legally obliged to carry out a credit check. A bank may only grant secure credit. The low impact of serviced loans on the score speaks for the car loan despite further loans. But, the total amount of debt should always be balanced in relation to income.

In addition, the Sachsicherung speaks for the car loan. It can therefore only be problematic at two points. Once at the amount of the net income. Most banks have a sufficiently high attachable income component.

This is not a fixed sum, but the amount varies. Please note the individual seizure exemption limits. Also the ongoing installment payments. In addition, the household budget must report a surplus. After all, despite further loans, the rate for the car loan can only be paid by money that is actually “left over”.

Vendor choice – direct bank or dealer

Vendor choice - direct bank or dealer

Basically, all doors for the car loan are initially open despite existing debts. However, it is worthwhile not to forego possible savings, especially when there is a shortage of funds. A direct interest comparison shows whether the car loan from a dealer or a direct bank loan is cheaper. The direct bank definitely has the opportunity to act as a cash payer.

Additional discounts for cash payers, through leveraged car loans despite additional loans, are likely. In addition, the third-party loan not only enables cash payment in the dealership. But also the purchase of a good used car from private customers. In this way, the retail margin of the car dealerships can be saved. The Internet shows in real time how much money a vehicle is worth according to the dealer EK. Basically, cost accounting almost always speaks for the online loan from a good credit comparison.

Use car loan for debt rescheduling

Use car loan for debt rescheduling

Problems can be expected if the budget bill does not work out in the sense of lending. However, there are different ways to achieve secure solvency at the same time.

The first approach, when money is running out, is of course to save. There are savings opportunities with regard to the budget surplus in the individually calculated costs.

That would be:

  • rental fee
  • water
  • electricity
  • also mobile phone contracts
  • Insurance
  • savings plans

Also costs of leisure activities, such as the contribution to the gym. If saving alone is not enough, debt payments can be reduced by rescheduling debt.

To do this, simply pay attention to the special conditions when comparing loans for car loans despite further loans. Many banks from the comparison offer debt rescheduling options together with the car loan. Over the term of the debt rescheduling loan – as a cheap car loan – the rate can be adjusted to the surplus.

Final installment loan – possible online?

Final installment loan - possible online?

It is not uncommon for car buyers to lower monthly rates by agreeing on a balloon rate. This loan model is also possible online. But people who are looking for a car loan despite further loans cannot be advised to do so. After all, the small running rate doesn’t run forever.

The car is also getting older. It loses value every year. Due to the loss in value, the vehicle is hardly suitable later to serve as security for the property. A critical situation arises from the loss in value as soon as the balloon rate is to be refinanced.

Especially with a tight budget, it is advisable to take out an installment loan with the same installments. So that small affordable rates remain possible, it is better to increase the term.

Car loan despite credit bureau – credit opportunities

With a negative credit bureau, the tide turns. Car loan despite further loans is still possible. But, reality often has little to do with the brisk advertising slogans. Sachsicherung continues to speak in favor of lending, but the score warns against the approval of the loan.

Now it depends on the individual case whether and to what extent there are actually credit opportunities. In general, only a sufficiently high secure income speaks for a bank’s loan approval. After all, not only regular banks are obliged to check their creditworthiness, but also credit banks with special loans. The budget statement must also speak clearly for lending.

It should also be borne in mind that a car loan is still very expensive as a risk loan despite further loans.

How much does a special loan cost despite credit bureau?

How much does a special loan cost despite credit bureau?

  • For example, 10,000 USD “extra credit”, the offer from Lite Lender, costs according to Astro Finance – 9.12 percent APR.
  • Borrowers at Auxmoney pay for the same car loan despite additional loans and credit bureau, again according to Astro Finance – 17.90 percent APR.

As a benchmark for comparison:

The currently cheapest regular car loan is offered from 1.69 percent APR.

Compare loans online ¬ĽAdvantages and disadvantages of online banks.

Loans can be obtained from direct banks at much more favorable terms than from house banks. Conventional financial institutions are generally unable to offer conditions as favorable as direct banks. This is because conventional banks maintain branch networks that cause high costs. They pass this on to the end customer in the form of higher interest or credit costs to the end consumer.

Advantages and disadvantages of online banks

Advantages and disadvantages of online banks

These costs no longer apply to online banks , since they do not have a branch network and thus save personnel and space costs. Banking orders are only carried out online, by phone or fax. In addition, these institutes are not tied to opening times. The loan amount is also paid out very quickly after checking the documents. The disadvantage of direct banks is, of course, that there is no personal contact with an advisor. This disadvantage is more than made up for by the lower interest rates and lower loan costs.

Credit comparison with direct banks

Credit comparison with direct banks

However, consumers should also make a loan comparison with direct banks, e.g. B. on online bank before deciding on one of the many providers. A loan comparison on a comparison calculator on the Internet is quite simple. The customer selects the loan amount and the term, and the calculator shows the cheapest providers in a matter of seconds. Many computers also offer the option of entering the intended use for the loan. This also ensures a better selection in the search results.

Credit decision criteria

Credit decision criteria

Those interested in credit should pay particular attention to the effective annual interest rate and the possibility of early repayment of the loan. The APR is the only amount that credit can really be compared to. The annual percentage rate includes the borrowing rate and the processing fee. It is expressed in percent.

The possibility of early redemption without prepayment fees is also an important decision factor. If you want to redeem a loan with a term of 10 years, perhaps after 5 years without a prepayment fee, this option must be agreed in the loan agreement.

Another point to consider for the borrower is the credit dependency of the effective interest rate. The cheapest interest rates are only available with a good credit rating. Therefore, the customer can also search specifically for credit-independent credit offers with fixed interest rates.

 

Budget bill for credit

Anyone who has ever wanted to take out a loan is probably familiar with the household accounts of credit institutions and banks. With this calculation, the banks check above all whether the borrower can also afford the desired loan, that is, can pay from his income. So it is the bank’s safeguard not to give financial benefits to people who cannot repay them.

Which documents are required

Which documents are required

The banks request some documents from the applicant to check the creditworthiness. First of all, of course, this is proof of income. So the pay slip or the last three pay slips. In some cases, confirmation is also required that the borrower has no fixed-term contract.

The three consecutive salary slips also show the bank advisor on the household bill for the loan whether a garnishment has already been attached. Which of course is an exclusion criterion for lending. A copy of the ID card can also be requested from the banks.

What happens then

What happens then

The bank advisor then compares the income with the expenditure. In other words, it lists which expenses, such as rent, car, insurance, maintenance, food, etc., have to be deducted from income. For example, many people cannot quantify their monthly expenses for clothing, groceries, household insurance, telephone and internet, or only very inaccurately. For this reason, the banks apply a lump sum for this. This is between 650 USD and 700 USD per month.

If more than one person lives in a household, a flat rate of 200 USD is added for each additional person. The banks do not consider whether they are adults or children who live in the same household. Because the demands and living habits can change over the years in which the loan runs and there must also be enough money available for living for several years. In many cases, lending already fails at this point, because the cost of living, which the banks have set relatively high, is not attained by many borrowers.

If all the required criteria of the banks have been checked positively, in most cases there is nothing standing in the way of lending. If the mandatory credit bureau information does not produce any negative entries, the loan amount is paid to the borrower. The budget bill for the loan should, however, be filled out honestly or discussed with the bank advisor. It is of no use to the bank or the borrower if the installments can no longer be paid in the end.

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!