Fixed rate loan – The example shows the differences

Some want to fulfill their dreams with a loan. Whether it is a new home, a new computer, a trip around the world or a car, the banks are happy to provide a loan if the conditions are right.

A comparison calculator on the Internet shows the best offers, because interest is not the same as interest. These comparison options are free of charge and can be adjusted according to the amount of the loan and its term. One should not forget that the interest is fixed for the entire term. This means that the borrower does not benefit from falling interest rates. However, rising interest rates cannot affect him either.

Fixed rate loan

Fixed rate loan

Loans are usually offered at a fixed rate. When choosing the right bank, you should therefore pay attention to the effective annual interest rate, because all fees and costs are already included here. The interest margin of the individual banks is quite large. 

Across Lender is currently charging 4.69 percent APR. Fine Bank has the highest interest rate at 9.50 percent a year. This shows how important a comparison calculator is. This is all the more important in the case of real estate loans, because the terms here are ten years in advance.

The credit rating

The credit rating

The fixed-rate loan also depends on the credit rating. Since most consumers do not get the lowest interest rate at all, it makes sense to look for a loan that is independent of the credit rating. However, if you have entries in the Credit Bureau that are too bad, you can expect the bank to reject the loan request. In the latter case, all that remains is to apply for a fixed-rate loan abroad. There are also comparison calculators for this.

Freelancers and self-employed

Freelancers and self-employed

When looking for a loan with fixed interest rates, it is striking that freelancers and self-employed people have to put up with high hurdles in order to get a loan approval. Most banks immediately reject these applicants because the income situation is uncertain. The founders in particular can sing a song about it. Across Lender, Lite Lender, Best Bank and Binary Lender are promising for a loan. Seventies bank also sometimes supports the self-employed and freelancers with a fixed-rate loan.

How does an instant loan with special repayment work?

Private borrowers in Germany no longer just want a loan that can convince with a low interest rate; for many borrowers, application, availability and flexibility in repayment also play a decisive role. The trend in borrowing today is clearly towards online loan products, because these can very often convince with quick and easy application, flexible repayment and low interest rates.

Especially when it comes to the speed of application and availability, instant credit products from the Internet often have the edge. Today, quite a few banks also offer an instant loan with a special repayment. The special repayment proves to be extremely practical for the borrower, because he can make use of an additional and flexible form of repayment. The amount of the special repayment is variable and can be individually influenced by the borrower within a certain framework. It is not uncommon for the special repayment to make up between 30-50% of the remaining debt per year, so the option for the special repayment makes perfect sense.

Instant loan with special repayment – This advantage arises for the borrower

Instant loan with special repayment - This advantage arises for the borrower

As already mentioned, the special repayment is an additional repayment that can be made at the borrower’s discretion. For example, if the borrower can unexpectedly raise money through an inheritance or other circumstances, he can use it to repay the loan. Due to the special repayment, the residual debt can be reduced directly and the loan liabilities can be prematurely released. Since the total interest costs for all loans with installment repayment are determined from the remaining debt, the borrower can significantly reduce the total loan costs through a special repayment.

Secure instant loan with special repayment at a low interest rate – this is how borrowers secure the best conditions

Secure instant loan with special repayment at a low interest rate - this is how borrowers secure the best conditions

Borrowers who want to call up an instant loan with a special repayment at the best interest rates and save a lot of money should of course focus on the interest conditions when making the comparison. The effective interest rate should always be selected as the basis for the loan comparison, as this is variable in amount. In addition to the bank’s borrowing rate and fees, the effective interest rate also includes factors such as term and loan amount and the borrower’s credit rating. In practice, borrowers with a positive Credit Bureau and a high regular income can always secure an instant loan with a special repayment at the best interest rates. The same applies to borrowers who choose a short term and a low loan amount.

Compare instant loans with the option of special repayment – be sure to use the loan calculator

Compare instant loans with the option of special repayment - be sure to use the loan calculator

Only by comparing credit calculators on the Internet is it possible for the borrower to quickly and easily compare several credit products with regard to specific requirements (term, income, loan amount and much more). The loan calculator comparison often allows very low interest rates to be called up.

Instant loan despite bank refusal

If an application for a loan is rejected by the bank because the loan applicant does not meet the required requirements, many of those affected wonder whether an instant loan can be obtained despite the bank being refused. If prospective creditors know what makes banks tick and how they make their decisions, they often manage to get an instant loan despite bank rejection. In this article we give you the relevant information that can be helpful when it comes to an instant loan despite a bank refusal.

The different strategies of the banks

The different strategies of the banks

Similar to the fact that the entire market economy is different and multifaceted, the same applies to banks in the financial world. Currently, the image of banks is no longer seen only through banks that have branches and branches, as customers have known for years and days. Since the Internet came into existence and has become part of everyday life for consumers, there are more and more direct banks that are completely branchless. The direct banks sell their products exclusively via the Internet.

That is why they are able to work very efficiently and cost-effectively. Direct banks generally grant loans on better terms than branch banks because they largely pass on the cost advantage that they have due to the lack of branches and fewer staff directly to customers. In order to keep the credit default risk low from the outset, the banks take appropriate precautions and guidelines that must be taken into account when deciding on a loan. However, these guidelines are individual and vary from bank to bank, as is the interest at which the loans are granted. Anyone who receives an instant loan from a bank despite bank rejection can then assume that their loan is correspondingly expensive. Banks hedge themselves especially with customers with poor creditworthiness by demanding higher interest rates.

Instant loan despite bank rejection from the house bank

Instant loan despite bank rejection from the house bank

Consumers who have already made a number of credit inquiries online and only ever receive cancellations should give their house bank a try. If it is a branch bank, you can have a personal interview in connection with the loan application. In such conversations, it is often possible to remove inconsistencies from the world or at least explain them plausibly. In addition, there is an opportunity to ask for alternatives. Sometimes it is enough if the loan amount gets a little lower and the term is designed so that the rate can be paid from the freely disposable income. If the creditworthiness does not make a promise possible, a solvent guarantor can join the contract as additional security.

If the loan was applied for in a branch bank and rejected there, there is always the possibility for the person concerned to ask why a rejection takes place. A loan is often rejected for trivial matters. This can be a long-standing entry in the Credit Bureau that becomes a handicap or simply the fact that the desired loan amount and the resulting rate are simply too high. A loan applicant should therefore prepare their own household accounts in advance, which they use to determine how much of their freely disposable income is and what rate they can afford. Sometimes it is enough to plan a longer term because it also reduces the monthly charge. A personal conversation with the customer advisor can be helpful and useful.

Get instant credit elsewhere despite bank refusal

Get instant credit elsewhere despite bank refusal

In the future, loan seekers who find out the reasons for a loan refusal in person can prepare better and take the bank’s instructions into account when making the next inquiry.

Good to know: All banks enjoy freedom of contract. You cannot be forced to grant credit to someone who you see as too great a risk for yourself. Therefore, prospective borrowers whose loan application is rejected by many banks should look elsewhere for alternatives. If you do not get a loan from the bank due to its poor credit rating, you should try to borrow money from friends or relatives or take out a loan on the life insurance that may be available if there is an urgent need for money. The creditworthiness doesn’t matter.

Where to find an instant loan for retirees

Pensioners are actually not among the banks’ favorite clientele. Bring money and put it there, then the door will be held open. On the other hand, if they want to borrow money, then many banks put themselves at risk. Age or the rather narrow pension are often cited as reasons for rejection. Many retirees have a very high pension and enjoy excellent health even in old age.

Since retirees still have wishes that can sometimes only be fulfilled with an instant loan for retirees and pensioners, some banks have recognized the trend and offer, among other things, loans that are especially tailored to retirees. The loans are tailor-made and take into account not only the age of the clientele, but also the amount of the pension.

The benefit of an instant loan for retirees

The benefit of an instant loan for retirees

Banks should actually be happy when pensioners ask for a loan. They are considered extremely reliable when it comes to repaying liabilities. Before a pensioner cannot pay, he prefers to ask within the family if the missing money can help him out there.

In addition, pensioners are considered to be very economical. You have provided for old age with various insurance and investment options that can be used as security for an immediate loan for pensioners. This is definitely an advantage for banks if you also offer a loan to pensioners.

The difference between an instant loan for retirees and a classic installment loan

The difference between an instant loan for retirees and a classic installment loan

An instant loan for pensioners is not comparable to a classic installment loan. So there will be no funding that will run over a long period of time. The bank will base the term on the age of the borrower. This means that large amounts of credit are canceled, which require a long repayment phase. As a rule, loans of up to EUR 5,000 are possible without any problems. If you can also name a younger guarantor for the bank, the loan amount and the term can increase.

Where to get an instant loan for retirees

Where to get an instant loan for retirees

Such a loan can be taken out online as well as at a local bank. As a pensioner, you may not be as well versed in the use of the Internet and will prefer a personal consultation. This decision can sometimes have a negative impact on the interest rate, since you can usually find a lower interest rate on the Internet. But that may be secondary in this case. It is important that you feel comfortable and in good hands with the credit decision and advice. A few dollars more in interest is then not so important.

Swiss credit over 3500 dollars

 

If you are interested in a Swiss loan of over 3,500 dollars, we can show you the options for lending. You will also receive information about which bank has the Swiss credit and, if desired, you can also apply directly there. Contrary to what is stated otherwise, it is very possible to apply for the Swiss loan of $ 3500 directly from a bank: not in Switzerland, but in Liechtenstein.

Take out a Swiss loan of over 3500 dollars

Take out a Swiss loan of over 3500 dollars

The possibility of taking out a loan without Credit Bureau is a real blessing for those who have negative Credit Bureau information and therefore cannot get a loan from German banks. Life with bad Credit Bureau is not easy when it comes to proving creditworthiness. Banks and telecommunications companies as well as mail order companies keep a low profile and refuse to do business. That means no new cell phone contract, no goods from mail order and no credit from the bank.

When unexpected costs in the form of an expensive car repair come to those affected, good advice is expensive. Here even in the truest sense of the word, because the Credit Bureau-free loan is a lot more expensive than a comparable loan from German banks. In addition to the extremely high interest rates that are required, there is also the placement commission and, in the case of direct application, the notary fees for certified proof of income.

If you have a bad Credit Bureau and have to pay a deposit when moving or want to buy other important consumer goods, you have to find ways to finance the wishes. The advertising for Credit Bureau-free loans usually comes from credit brokers who promise credit even in particularly difficult or hopeless cases.

Please don’t fall for this advertisement. Fine Bank in Liechtenstein, which offers the so-called Swiss loan of $ 3500, only grants the loan to customers who are creditworthy. It is true that Credit Bureau does not provide information, but credit applicants still have to prove regular income from a permanent position – without income there is no credit. The loan is also not given to the self-employed or freelancers.

Only dependent employees who have been in the job for a year have the chance to get a loan. Low earners or part-time workers are also out of the question if their income is below the garnishment limit. In addition, protection through a guarantee is not possible. The bank also looks at the public debt register. Anyone who has submitted the EV or is going through insolvency proceedings will not get a loan.

Hire a credit broker

Hire a credit broker

If you are unsure whether the foreign bank is granting a loan, it is best to contact a credit broker. The intermediary arranges a preliminary check so that no additional costs arise in advance and the loan is only mediated if the person concerned is creditworthy. The brokerage commission is only payable if the broker can actually broker a loan. Reputable companies are Agree Bank or Across Lender.

Loan to be redeemed

Interest rates have dropped regularly in recent years, making existing loans significantly more expensive than new contracts. For this reason, a loan to save money can be saved. In addition, debt rescheduling is advisable if the customer is dependent on reduced rates and the current lender refuses to extend the term.

Processing a loan to be paid off

Processing a loan to be paid off

Before the customer signs the contract for a loan to be repaid, he makes a careful loan comparison. In doing so, he not only considers the accruing interest, but also pays attention to further loan conditions such as the possibility to suspend the installment and the right to free special repayments. At the same time, when examining whether a new loan agreement is worth repaying, borrowers must not disregard the early repayment fees that may have to be paid for the early loan repayment.

The new contract partner wants to make sure that his customer uses the loan as a replacement and not as an additional loan. The budget calculation he makes is based on the fact that the borrower actually repays the existing liabilities with the new loan. Only a few financial institutions are satisfied with the promise of their customers regarding the use of funds in the event of a planned replacement. Rather, it is common that they do not transfer the loan intended to settle existing liabilities to their customer’s current account, but directly to the existing credit accounts. For this purpose, the borrower submits a list of the loans to be repaid, and the corresponding amounts are obtained from his current creditors beforehand.

The partial amount intended to compensate for the negative balance in the checking account is of course received in the event of a loan repayment. This also applies to any increase that may be associated with the loan repayment and for amounts in which the current creditors do not accept payments from third parties, which is the case especially with some credit card issuers. Consumers understandably do not want to include cheap loans such as car loans on a loan to settle existing liabilities.

However, many lenders insist on taking into account all of the liabilities apparent from the Schufa information and only allow exceptions for any existing real estate loans. The Schufa information does not indicate the extent to which the overdraft facility and the credit line of a credit card account are used. Nevertheless, the redemption of these liabilities is indispensable, since they are associated with above-average borrowing rates.

What consumers pay attention to after the loan repayment

What consumers pay attention to after the loan repayment

Bank customers make sure that they do not pay the installment loan installments within a short period of time by reusing their overdraft facility. Ideally, they will no longer take advantage of this before the debt is fully repaid, or only for a few weeks. The credit card should also only be charged with the amount that can be settled immediately after receiving the monthly credit card statement. The re-use of granted credit lines following debt restructuring can be effectively avoided by agreeing on a sufficiently long loan term.

Account holders can have their disposition limit lowered if they fear they will soon be used again. Orders in retail on an installment payment basis remain possible after the loan has been redeemed, especially since, unlike a bank, the retailer does not find out from the Schufa information whether credit liabilities already exist. However, they should also only be made in exceptional cases, so that various liabilities do not have to be serviced again within a short time after the debt rescheduling.

Immediate loan despite bad credit

It is not impossible to get an instant loan despite poor credit rating. It just has to be done skillfully. You can find out what needs to be considered and where the possible pitfalls lie in our article on instant credit despite poor creditworthiness.

A strategic approach makes an instant loan possible despite poor creditworthiness

A strategic approach makes an instant loan possible despite poor creditworthiness

In order to make the “bad credit rating” generally understandable, the following are essential features that clearly indicate a bad credit rating.

  • Negative Credit Bureau
  • Existing unemployment
  • Long sickness-related sickness
  • Hartz IV receiver
  • Disability Pensioners
  • Single parents with several children
  • Low earners
  • time employees
  • Part-time workers

The creditworthiness is rated particularly badly if not only one of the mentioned characteristics but several apply to a person who wants to take out a loan. If this is the case, it can be hopeless to get a loan because no bank and no private individuals agree to issue an instant loan despite their poor credit rating. Which is no wonder. Whoever lends money also wants to have the chance to get it back.

How banks react to customers’ poor credit ratings

How banks react to customers

The bad creditworthiness of a loan applicant does not necessarily lead to the rejection of loan requests. There are banks that grant a loan despite the poor credit rating of the customer. However, they then charge correspondingly high interest rates, making the loan expensive for the customer. Other banks do not immediately refuse if their creditworthiness is poor, but instead request additional collateral from the applicant, such as a solvent guarantee.

The perfect solution – a solvent guarantor

The perfect solution - a solvent guarantor

It is still the case that banks almost always issue an instant loan despite poor creditworthiness as soon as a solvent guarantor is included in the contract. The bank is thus shifting the risk of default on the guarantor, who always has to sign a joint and several guarantee for installment loans. If the borrower does not pay his installments later, the bank immediately uses the guarantor. This can be done with the joint and several guarantee, so that a total loss can theoretically be ruled out, unless the guarantor does not pay.

Not every bad credit rating is really “bad”

Not every bad credit rating is really "bad"

In addition, the characteristics of poor creditworthiness can be assessed very differently. Someone who earns little but has a clean Credit Bureau, from which it can be seen that in the past loans went through cleanly, will also receive an immediate loan in spite of poor creditworthiness if simple collateral is provided.

The situation is completely different if the Credit Bureau information is negative and the loan applicant also has no work. The fundamental question here is what should be used to repay the loan installments. Unemployment benefit is not a seizable income. In such cases, especially when there are several negative criteria, it is pretty hopeless to get a loan.

A loan without Credit Bureau

A loan without Credit Bureau

If the poor creditworthiness is only due to the fact that the applicant’s Credit Bureau is negative, the so-called Swiss loan, which is applied for through a credit intermediary, can be the solution. The Swiss loan is a Credit Bureau-free loan. What is in the Credit Bureau does not matter for the lending. Loan applicants who apply for a loan without Credit Bureau must be able to demonstrate permanent employment with attachable income. Those who are unemployed or receive Hartz IV benefits will not get this loan. Guarantors are not accepted by the lenders.

Conclusion

Conclusion

It is not entirely out of the question to get a loan even with poor creditworthiness or bad creditworthiness. It always depends on what is how bad. In the case of a negative Credit Bureau, the Credit Bureau-free loan is actually recommended first. In many other cases, it is sufficient if the bank is given a solvent guarantor from the outset or subsequently. Solvent then always means that the guarantor’s creditworthiness must be so good that the bank can pay the loan to him. This presupposes that the guarantor is not fully burdened with his own obligations, then it can also work with the instant loan despite poor creditworthiness.