Take out credit – What to look for

This also applies to you if you want to take out a loan. What should you consider when comparing? Rather, it is necessary to know in advance what to look for when searching. When asked “Which loan is right for me? We’ll show you how it works and what you have to watch out for here.

Borrowing: what to look for?

Borrowing: what to look for?

If you want to make a bigger purchase or are surprisingly in a financial emergency, you often need to take out a loan. But credit is not the same as credit. Therefore, it is particularly valuable to pay attention to every little detail when choosing a loan. The boom in the German economy and the phase of low interest rates motivate several thousand German consumers to take out loans every year.

The granting of installment loans is also worthwhile for credit institutions. For this reason, debtors with strong credit ratings rely on a large selection of offers. However, interested parties should always look at the change. Special promotions are often linked to special credits, which are often only advertised in the advertising industry. Those who want to take out a loan online are well advised to check the conditions of the individual service providers in advance.

The comparison only makes sense if the loan offers are viewed with the same rates. In addition to the loan amount and the due dates, information about the monthly repayment rate and the due dates must always be treated equally. This interest includes the nominal interest, the processing fee, discounts and deductions, commissions and any insurance.

A low effective interest rate reduces the loan amount. Therefore, this interest rate is crucial for choosing a loan. Those who cannot pay the tranches in the long run are creating new financial problems too quickly. A loan without processing fee is conceivable for the loan with processing costs. It is also useful to draw up a financial plan before borrowing that regulates the cost of the loan in the event of illness or job loss.

It should be further examined whether potential debtors prefer a loan, in particular from a direct or branch office. Loans free from Credit Bureau should be handled with care. Such loan offers are usually associated with high or rapidly rising interest rates. Those who choose their loans carefully and pay attention to these details will certainly not get caught in the creditworthiness trap.

Borrowing – what to look out for

What needs to be considered when borrowing to be on the safe side? Especially at a time when interest rates are very low, consumers are more often tempted to take out a loan: many offers make it difficult to see what is on them and it is not always what is on them So there are a couple of points you should pay attention to to make sure you get the loan without taking any risk. to have.

If you are not quite sure which loan is suitable for you or if there are other concerns, a phone call or the direct route to the house bank to find out is usually helpful. So that you can get a precise idea of ​​the house bank where you want to apply for a loan, evaluations and other literature references are helpful, which can also be found in web forums and evaluation portals: test stickers such as the TÜV are of course a clear indication of a respectable provider.

Cheap loans are very tempting, but you should still be careful not to forego covert spending. Comparisons can be very useful here, for example on www.mein-kredit.net you can make a loan comparison. Of course, the way to the house bank is also an aid. Providers without a correct print with missing information such as e-mail address or address should be avoided because you do not know who is behind them, good providers can be reached via a free telephone number.

Instant credit with immediate payment

Time has become faster. Consumer behavior has also changed. Today it is more than ever about consumption. If there is no money, it is easy for consumers today to take out a loan.

For consumers who are in a hurry, the banks advertise with an instant loan with immediate payment. They promise immediate processing and immediate payment of the loan amount. Thanks to the Internet, this is not a problem. But what is it about these advertising promises? Is there an instant credit with immediate payment and what does that bring to the customer. We investigated the question and did the research for you.

The advantages for the borrower with an instant loan with immediate payment

It is very important to the loan seeker to process his request promptly, approve it and then pay it off. Consumers who need an instant loan should contact a direct bank. Loans, which are now standardized banking products, are processed automatically here. This means that if the creditworthiness is adequate, the loan applicant can actually expect his requests to be processed and approved within a few minutes.

In order to take out the cheapest possible instant loan, it makes sense to do a free loan comparison in advance. The lower the interest rate, the cheaper the loan is in terms of costs. For consumers who want to save money when making debts, the free credit comparison is actually indispensable today. The bank of your choice can be clicked directly from the loan comparison and an application completed, which in turn is sent with a click of the mouse.

When filling out a loan application, loan applicants should work carefully so that all information is truthful. Every commitment is preliminary. It applies subject to the examination of the documents. If you state gross earnings instead of net earnings on income, you can have problems with the immediate loan payment with immediate payment. The loan is only paid out if all the information is correct and the consumer submits the requested evidence.

Thanks to the automatic processing at banks, consumers with the best creditworthiness have the chance today that their application will also be processed and approved on Sundays and public holidays. Only the payment is not so quick. An online instant credit requires the use of the Post Ident procedure. To do this, a branch of the Post Office must be open, which is known not to be the case on weekends and public holidays. In this respect, the instant credit and instant online payment is not as easy as the advertising suggests. Instant loan yes – immediate disbursement rather no.

Apply for an instant loan with immediate payment

If you apply for an instant loan with immediate payment, you should assume that the credit request will be processed immediately and that the credit will be approved immediately if it has the appropriate credit rating. Theoretically, immediate disbursement would only be possible if the customer could be in the bank on site to accept the loan in the form of cash. This is usually not the case. The immediate payment means that the loan is paid out immediately after the contract documents have been received and checked. Until then, a time is always assigned.

If you really need money quickly, you should use your disposition loan or apply for one. The desired credit can be paid out immediately as part of the overdraft facility.

If the loan is applied for online from a direct bank, it takes about seven banking days, i.e. a good week, from approval to payment of the loan amount. This is quite quick for editing. It is probably a little faster at a branch bank, but the fastest way is if it is the house bank. In the branch, the customer can legitimize himself and the post delivery times that extend the process are completely eliminated.

Credit despite sick pay

If an employee receives sick pay, it can be assumed that he has a serious illness. Sickness benefit is paid after six weeks of illness as continued wages. Many workers do not know what to do after their illness. Can he work again, is there unemployment or even Hartz IV? Questions that can gnaw on a sick person.

In the past, employees were protected against dismissal during a sickness certificate, but today the employee can dismiss the employee. This gives rise to fears of existence that often end in depression. In addition, many workers also have difficulties with their finances. A loan would have to be applied for, important purchases are in the house. But does the bank grant a loan despite sick pay?

The loan despite sick pay – the situation

The loan despite sick pay - the situation

Employees have less income while receiving sick pay. The professional situation has also become uncertain. Will the employee keep me busy? Can I still work? These are questions that can already strain an employee. In addition, there is the financially tense situation because sickness benefits are lower than the previous wages.

Banks are very reluctant to take out a loan despite sick pay. After all, neither the customer nor the bank knows how the customer’s financial situation will develop. Does he get unemployed or in Hartz IV? The situation is different for civil servants or civil servants. This occupational group receives their income longer before sick pay is paid. There is also no prospect of dismissal, the job is secure, the employee cannot be dismissed. This means that this clientele has a good chance of getting a loan despite sick pay.

But even the employee who does not work in the privileged professions has the prospect of a loan despite sick pay. If he knows that the service can be resumed after the end of the illness, the bank will agree to a loan despite sick pay. This would be the case, for example, if the employee had broken a bone. There is no telling when it will heal.

But there are diseases where the end is open, where the employee does not know how to proceed. Does the disability pension come from which no one can live or unemployment? This naturally reduces a customer’s creditworthiness and the bank rigorously refuses the loan despite sick pay. However, it does not intervene in loans that are still in progress if the employee pays the installments correctly.

The way out

The way out

The bank will refuse the loan in spite of sickness benefit under the given circumstances, unless the customer is satisfied with the overdraft facility that the banks provide their solvent customers. If a overdraft facility has already been set up, the bank could expand it. It can often be used to pay for the most urgent things.

However, the overdraft facility also has a catch, because on the one hand it is an expensive loan and on the other hand it should only be used for short-term use. If the employee could work again after his illness, the overdraft facility is not a problem because he could be rescheduled into an installment loan. If this is not the case, however, the income remains reduced, the overdraft facility can become a debt trap.

The employee should consider that interest is drawn on each quarter to use the overdraft facility. If nothing is returned, the amount will add up properly. If it then comes to the point that the banks no longer carry out transfers because the account is not funded and return debits arrive, then the employee has an urgent problem.
Therefore, the use of the scheduling should also be carefully planned.

The loan despite sick pay could be realized if the employee can name a second applicant or a guarantor. Both persons must be solvent, that means a sufficient income and a clean Credit Bureau.If a guarantor is found, it should be fully informed about the guarantee. For example, that the guarantee is a big risk. That the guarantee can possibly ruin him financially.

The second applicant must also be solvent; from the outset he has the same status as the borrower. Specifically, if the employee can no longer pay, the bank immediately turns to the second applicant. In most cases, a guarantor is only used when the borrower has gone through all legal instances up to enforcement. This type of loan should only be used if it is certain that work can be resumed after the illness and if there is absolute trust between the two borrowers.

The alternatives

The alternatives

The employee with his limited credit rating could, under other circumstances, receive a Credit Bureau-free loan from abroad. These banks do not query Credit Bureau, but there must be a minimum income. For a single person this is at least 1,100 dollars. The income must show an attachable portion. Permanent employment is also required. Proof is provided with a copy of the employment contract.

Since these banks also request bank statements, the bank will see that sick pay is being drawn. However, the foreign banks do not accept this, the loan despite sick pay is also rejected here. The reason that sickness benefit cannot be attached. Unemployed people also do not receive this loan, and unemployment benefits cannot be attached.

Those who receive sick pay still have financial worries about their illness. A small loan can often be taken out from relatives or acquaintances. If the employee is lucky, a written loan agreement should be drawn up.

There are portals on the Internet that offer loans to employees. There are two known ones, Fine Bank and Across Lender. There, the employee can create a profile and submit his credit request. Private investors do not see the conditions for a loan as narrow, but still insist on certain conditions. For example, the Credit Bureau must be clean. The interest rate level will also be higher.

If you see no other option, you can register there and confidently present your loan request. However, the employee has to bring time until lenders agree to commit to a loan.
There must also be no enforcement notices, reminders or disclosure notices, which is also a credit exclusion for private investors.