A borrowing should always be well considered. Finally, you enter into a payment obligation to the lender that is fixed and irrevocable. In addition, there are additional costs, for example in the form of interest, which have to be corrected on a regular basis. Unfortunately, conditions and additional costs are not always apparent at first glance and many consumers do not know what to look for when they want to take out a loan. For this reason, Crediteriol has put together the most important facts.
Fast money for you via direct payday lenders online
A loan application for payday loan direct lender can only be successful if certain conditions are fulfilled. In a nutshell, certain criteria must be in place for you to be considered creditworthy. Below is a list of the most important conditions for taking out a loan:
- Only those who have reached the age of 18 and have reached the age of majority can borrow money. Only then are you fully capable of acting and contracting.
- In addition, you must have your first residence and a bank account in Germany in order to get a loan in the Federal Republic of Germany.
- As a rule, no loan agreements are concluded with employees who are entering into a new employment relationship during the probationary period. Quite simply because here shorter notice periods for the employee must be considered and the lender would have to take a higher risk.
- A fixed-term contract could also be unfavorable if the period of employment does not correspond to the repayment term. It is therefore better to have a permanent employment contract.
- The self-employed and freelancers are more likely to take bad credit cards. In some cases, it is sufficient to submit the business evaluations last years. Many lenders reject self-employed and self-employed workers from the outset, as these professions seldom have a secure and regular income.
- If you want to take out a loan, you should not have a negative credit bureau entry. The score calculated by the credit bureau is used by the lender as a guideline to estimate your creditworthiness.
Taking out a loan – what should you pay attention to?
Once you have decided to take out a loan, you need to think about the nature of the loan agreement. Finally, depending on the purpose of the financing, two different credit models are available, the pros and cons of which you should weigh carefully. The most straightforward, but also the most expensive type of loan is considered as the disposition credit:
Although an outright loan is available immediately, the interest here is far above that of a installment loan, which is why a credit line is very costly. In general, this form of credit is only recommended if you have to bridge a short-term financial shortage and can repay the borrowed money in a short time.
But beware! Not infrequently, the repayment credit is only the beginning of the end. Because often borrowers do not come out of the minus due to the high interest rates. In many cases it then needs a installment loan to carry the account balance back into the plus. Ratsamer is hung the inclusion of a classic installment loan. Significant factors of a installment loan agreement include the loan amount, the term and the monthly repayment installment.
But that’s not all, because you should also think about the monthly amount of the installment and the associated interest costs and repayment term. In particular, the relationship between interest payments and repayment is to be observed. It is best to use a loan calculator before borrowing: this allows you to play through various repayment scenarios and decide on the installment rate with the interest premium that best suits your personal economic situation.
Insolvency after borrowing?
Another tip: Do not calculate with the ideal case, because all too often make sudden unemployment, divorces, deaths or illnesses a stroke through the carefully prepared bill. Since such miseries usually occur unexpectedly, it is advisable to complete an unemployment insurance or residual debt insurance before the loan application. It is even better, of course, you have saved a small upholstery from the outset, with you can settle the installments in the short term.
If it is an acute payment problem you have several options to maneuver yourself out of this emergency situation. Either you reduce the installments to a level that is compatible with your financial situation or you apply for a deferral.
In any case, it is wise to get in touch with your bank as soon as possible and explain the current situation. In rare cases, even a repayment subsidy comes into question. Less popular, but therefore no less useful is the search for a debt counseling. Here you will find many valuable tips and information.
Take credit best there:
Most people who want to apply for a loan do so at their bank, where they already have an account anyway. Today, however, there are many options at which bank to conclude the loan agreement. A search on the Internet has proven itself many times over, as some direct banks often offer more favorable terms than banks with branch structures.
Online, they can quickly, easily and completely independent of any business or opening hours to perform a credit comparison between different providers. In this way you can reliably find the cheapest offers. Of course, your bank also knows this: therefore do not be afraid to compare the online offer with that of your house bank. It should have happened already that the house bank changes the conditions and improves the offer.
Of course, deciding where to take a loan is not just a cost issue. If, for example, personal advice on borrowing and during the term of the loan is very important to you, you should give preference to a branch bank. This is where you will be assigned a personal adviser who will be available to answer your questions and any other matters relating to the loan agreement. Online banks do not provide a personal contact and do not have any branches where you could ask. But the conditions are also cheaper.
Attention pitfall when taking credit
Caution is always required! Especially with money transactions and loan agreements that are processed online, you should beware of dubious credit providers. A rip-off is best recognized by the following points:
- Intransparent fees are charged BEFORE the loan is granted.
- improper credit pledge, defies bad credit and creditworthiness. However, this point is not to be confused with serious credit despite credit bureau. For smaller loans can certainly be given to people with minor credit bureau entries under certain conditions.
Dubious lenders therefore recognize that you are promised a loan payment in any case, regardless of the credit bureau information. And if advance payments are required during the so-called payout process.
In addition, the Federal Court has the processing fees, which many banks claim for credit check etc., declared inadmissible – no matter whether the processing fees are mentioned in the terms and conditions or in the loan agreement. Please remember, before you take out a loan.