Swiss loan for self – employed

If a self-employed person applies for a loan, the bank first sees the associated risk. Freelancers and traders do not have a consistently high income and the economic situation is also subject to fluctuations. The self-employed must therefore do particularly well in the Credit Bureau examination.

Even a reminder invoice within the past three calendar years leads to a reduction in the scoring value and not infrequently to the rejection of the application. If this happens, a Swiss loan for the self-employed is a good alternative to get the money you need quickly and easily.

Swiss loans are Credit Bureau-free

Swiss loans are Credit Bureau-free

A Swiss loan is a loan that is granted without Credit Bureau information. Anyone who applies for a loan in Germany will be registered by Credit Bureau, even if the application is rejected. It is different with the so-called Swiss loan, which is therefore particularly suitable for the self-employed, freelancers and everyone whose credit rating is not optimal.

Such a loan is not registered by Credit Bureau and therefore has no negative impact on the future credit rating. A Credit Bureau-free loan is usually a bank based abroad. Credit Bureau-free loans are therefore not dubious from the outset, as some may suspect.

Special features Credit Bureau-free loans

Special features Credit Bureau-free loans

A Swiss loan for the self-employed is usually granted up to $ 3500 and is not tied to a specific purpose. The borrower does not have to indicate what he wants to use the money for. The application is not made to the bank itself, but is processed through an intermediary based in Germany.

A commission is only paid if the loan is approved. If the credit broker requests the commission in advance, skepticism is appropriate. The same applies to attempts to sell the applicant additional insurance or savings contracts in order to improve their creditworthiness. A reputable foreign bank only requires proof of income and possible collateral when submitting the application.

Apply for a loan now and grab the best offer!

Real estate credit: private and commercial real estate financing

A real estate loan is the financing of a property through a loan. The real estate loan is an essential component for the construction or renovation of houses or structures.

A distinction is made between private and commercial real estate financing. Private real estate financing is a loan for private individuals that is used to acquire or build owner-occupied residential property.

The other option is to buy property as an investment. A distinction is therefore made between owner-occupier financing, the most common form of credit granted for real estate, and financing as an investment. This is investor financing. Here the financier is the landlord of the property and does not necessarily live in it. The property is bought for rent, the rental income, which is primarily needed to repay the real estate loan, can later be used to build up assets.

Financing private real estate

Financing private real estate

First of all, of course, equity can be brought in, as is the case with savings or liquidable securities. In addition, employee savings allowances, state subsidies, promotional programs of the Best Bank or residential residents can also be claimed.

There are also various types of loans. These are the real estate loans. These can be provided by banks, state funding institutes, building societies or insurance companies. However, all lenders require an approval according to the German Banking Act in order to grant commercial real estate loans.

However, loans from employers or other private individuals can also be used to finance real estate. The special thing about real estate financing is the real estate lien, which is usually required through a land charge on the mortgage object to be financed.

Taking out a real estate loan

Taking out a real estate loan

Lenders see the real estate loan as the loan that has the lowest default risk. The loans are secured by a mortgage or a mortgage. However, it may happen that the remaining obligations cannot be settled by selling the house. This is often the case with foreclosures.

If the fixed interest rate expires, changed real estate prices can pose a further risk. If property prices fall, the loan may no longer be secured. In such a case, if the mortgage lending value is lower than the remaining debt, the lender may request additional security or risk premiums.

If there is no match between the borrower and the lender, the lender has the right to terminate the real estate loan. The borrower now has the right to look for another lender within a certain period. If this search is unsuccessful, the lender has the right to sell the property after the deadline, i.e. to sell it.

Repayment of the real estate loan

Repayment of the real estate loan

In the case of a real estate loan, the loan granted must be repaid within a certain period of time. The repayment takes place on the one hand through the repayment and in the form of interest.

Annuity loans are mainly granted for real estate loans. The repayment shares flow into the remaining loan. In this way, the interest burden is reduced in the course of the financing.

As a rule, the annuity loans are not concluded for the entire period that would be required for payment. In Germany, contracts between 5 and 15 years are concluded as part of the fixed-term interest period. The shorter the time period, the higher the risk for the borrower if the interest rate rises.

Not only the usual repayments can be agreed between the lender and the borrower. Suspension of repayment may also be possible. If the repayment is suspended, the borrower pays the interest. The redemption rates, on the other hand, flow into a redemption surrogate. The repayment portions are saved here and used to repay the loan amount at the end of the repayment period.

Redemption surrogates can be pension insurance, life insurance, or mutual funds. The home loan can also be used as a repayment option. Once allocated, this too has the character of an annuity loan. In the case of newly concluded home savings income, the home savings sum is completely pre-financed up to its allocation.

Risks and opportunities of private property purchases

Risks and opportunities of private property purchases

Buying or building a property can lead to an increase in assets. In the worst case, however, there may also be a loss of assets. Indeed, the key to the success of wealth creation is the direct comparison of the development of wealth when buying a property versus how the wealth would develop if it were rented.

If the advantages prevail here, then the purchase of this property makes sense. When buying the property there is a rent saving. In addition, the increase in the value of real estate can be counted among the advantages of the purchase.

However, the credit and maintenance costs are disadvantageous and risky. Real estate owners should never lose sight of the risk of losing value. In order to actually achieve a return, the location of the property should be carefully examined. When renting out the property, it does not always necessarily mean that a secure return can be achieved.

If properties are acquired in poor locations and with poor construction, mostly no rental income can be earned. The risk here clearly lies in the fact that the desired return on the capital brought in cannot be achieved at all. In addition, possible vacancies in the course of the holding period of the property cause losses. When such properties are resold, there is usually a further serious loss. Especially with tightly calculated real estate loans, this can lead to financial ruin.

Consumer protection rules for private real estate loans

Consumer protection rules for private real estate loans

Real estate purchases and their financing are legal transactions in which immense sums of money are moved. As a rule, the sum of the financing exceeds the annual income of the borrowers many times over. As a result, there are a number of legal requirements for the financing of private real estate.

First of all, the purchases of real estate and the ordering of mortgages must be notarized. But there are also consumer protection rights for the loan agreement, which the lender must comply with.

The right of withdrawal is an integral part of consumer protection rights. The lender must notify the borrower of the right of withdrawal. It is not sufficient to list this right of withdrawal in the contract. Private borrowers also have legal protection if they fall behind with their installments. This does not mean that the loan cannot be canceled at all. However, lawmakers protect private borrowers from being seduced.

Due to the Risk Limitation Act, which came into force in 2008, the borrower may only terminate the loan if he is behind with 2.5% of the loan amount. As a result, with a conventional construction loan that bears interest at 5% and has an initial repayment of 1%, the borrower can be in arrears for five months without the real estate loan being terminated by the bank. In addition, the options for realizing the property by the lender were restricted by the Risk Limitation Act.

Tax treatment of real estate loans

Tax treatment of real estate loans

The national markets for real estate loans are shaped by the tax framework. If national tax law grants tax reductions for real estate loans, this can be an incentive to buy a property and to bring in as little equity as possible for this.

In Germany, the taxation of real estate financing depends on the use of the real estate. If the property is rented or leased, this income is subject to income tax. However, interest or fees can be deducted as advertising costs for the rented properties. The rental income is thus reduced by the costs of the financing.

Special legal regulations apply to rentals to close relatives. For relatives, the rental price may be reduced to 66% of the local rent. The tax deductibility of interest is not affected. In the case of private and owner-occupied houses, the financing costs for the real estate or other expenses for the real estate in Germany cannot be used for tax purposes. The rent savings are also not relevant for the taxpayers.

Urgent and extremely urgent loans changed

Loans promoted is a form of fast financing which, despite the rapid timing, requires the request for promissory notes as collateral and means of payment instead of the monthly installment. It is a form of financing which, although it is not an economically viable choice, is suitable for all those who are protested or bad payers and who would have difficulty accessing credit. It is easy to understand how the fast loan with promissory note allows to reduce the time of disbursement of the credit in order to have a liquid availability to meet the expenses.

For obtaining the fast loan with the bill of exchange, which constitutes the means of repayment of the loan and of payment, the stamp duty must be affixed to it since its first issue. If the institution providing the loan does not have the correct regularization, it cannot make expropriation actions on the assets of the person who issued the bill not covered. The fast loan with promissory notes provides for the payment, by way of repayment of the loan, of bills of personalized amount based on the assessment of the financial situation of the applicant and an amortization plan that usually varies from 12 to 120 months.

Loan with bills: speed and security

Loan with bills: speed and security

The fast loan with bills is a particular form of non-finalized financing that allows you to obtain a financial capital with the only guarantee of the signature affixed to the bills of exchange, an executive debt that allows the credit institution to recover the amount of money disbursed. Due to its peculiarities, this type of financing can also be requested by those who have been reported to Crif as bad payers or protested. In the fast loan, the monthly installments are the bills of exchange which constitute the form of payment and guarantee for the bank or for the financial company that grants the loan. The promissory note represents an enforceable title and, in the event of insolvency, the lender can request the attachment of the assets owned by the borrower. Delivered before the signature of the loan on the bills of exchange, the fast loan with bills significantly reduces the timing of acceptance but also of possible rejection of the application.

In fact, it is possible to obtain the required financial capital over a period ranging from 24 hours to 3 days maximum. The clearly reduced time frame in accepting the preliminary investigation of the loan and in the disbursement of the requested capital is what characterizes and distinguishes the category of fast loans with bills. The bills themselves constitute the guarantee of recovery of the assets of the contracting party in the event of non-fulfillment of the financial obligation assumed.

The bill of exchange, which at the same time constitutes the means of repayment of the loan, allows the lender, in the event of non-payment of the amounts due, to proceed with the start of the procedures for attaching the assets of the fast loan contractor to recover the sums disbursed. It goes without saying that this logic that underlies this form of loan allows the institution that evaluates the request for the loan to be exchanged to experience, in the shortest possible time, the practice of accepting and disbursing the financial amount.

Quick loan with bills: request and send documents

Quick loan with bills: request and send documents

If you do not have time to waste to get around the various banks and financial companies, you can scrutinize the credit offers and offers online ; it is simply a matter of surfing online, choosing the broker or the credit agency that allows you to send all your useful documents electronically to request the fast loan changed and in a few days, if not even in the next 24 hours, you can receive an answer by a credit counselor.

It is good to know the necessary documents that you can independently send to speed up the loan with bills:

  • work contract;
  • income certificate for individuals without paychecks;
  • valid identity card;
  • fiscal Code;
  • collateral with the signature on the bills.

Foreign credit: how to apply for it and for whom it is suitable

A loan from abroad comes with numerous advantages over domestic loans. First of all, it should be noted in this connection that a loan from abroad does not differ much from a domestic loan. Maturities, conditions and repayment structures are more or less identical.

However, there are differences in the application for loans and the granting of loans. Foreign lenders refrain from providing Credit Bureau information, which is due to the fact that a community of this type is a typical German model. However, there are still some requirements that can vary from bank to bank and country to country. A Liechtenstein bank, for example, requires different credit certificates that confirm the creditworthiness of a potential borrower than a French or Italian bank – at least in most cases.

On the Internet, many portals that specialize in foreign loans, but also large foreign banks, can directly look for suitable information, which conditions apply to foreign borrowers and whether there is any possibility of getting a foreign loan. In the EU area, the chance of a loan from a foreign bank is e.g. B. significantly higher than in non-EU countries, also due to the usual currency fluctuations, which represent an additional risk for lenders and borrowers in addition to interest rate fluctuations.

The main requirements for a loan from abroad

The main requirements for a loan from abroad

As mentioned, the main difference between a loan from abroad and a domestic one is that the lender refrains from providing information to Credit Bureau. However, he wants certain conditions to be met.

  • Depending on the type of lender, bank and country, this includes proof of income. As a rule, the amount of the proof of income depends on the number of dependents. A single person who only has to take care of himself already receives a loan with significantly lower proof of income than a person who has to support an entire family.
  • Another requirement that many banks require is age. As a rule, the borrower must not be younger than 18 or 21 years old and no less than ten years younger than the legal retirement age of his country of origin. In Germany, the age limit is 57 years. However, southern banks are generally much stricter than central and northern European credit institutions.
  • As in Germany, in many other countries, the self-employed have significantly more problems getting a loan because the requirement for a regular income is theoretically not fully met. Even pensioners and the unemployed have little chance of getting a loan from a foreign lender.

How to apply for a loan from abroad

How to apply for a loan from abroad

Nowadays it is possible to take out a loan from abroad without problems via the Internet. Experience has shown, however, that it is much safer to seek a personal conversation with the bank or lender where a loan is to be taken out. In this way you get to know each other and the borrower can prove his seriousness.

Another advantage of the personal loan application is that you can take a close look at the credibility of the lender. There are so-called loan sharks not only in Germany, but also in other countries that try to defraud with hidden clauses.

If you want to apply for a loan from abroad due to the travel costs or time problems on the Internet, you should first look at comparison portals, which many foreign lenders analyze and compare.

It is also highly recommended to use a credit broker. Although this receives a commission, which is usually associated with increased expenses for the borrower, a reputable foreign credit agency usually bears the risk if the lender is untrustworthy. There are also many customer review portals where you can find out about the agencies that provide foreign credits.

Reasons for using a loan from abroad

Reasons for using a loan from abroad

Many people have a Credit Bureau entry, which is not negatively affected in a few cases. With each new rental or mobile phone contract, the contracting party usually first obtains information and then gives Credit Bureau a note that the person concerned is taking on new obligations. In the case of a mobile phone contract, the duration of the liability is based on the length of the contract, and in the case of rental contracts on the notice period.

Even with a loan, the bank usually obtains Credit Bureau information, which means that it is more difficult for many borrowers to get a loan. However, Credit Bureau receives a note from the bank with every loan application, regardless of whether it is positive or negative.

In order to have no problems with moving into a new apartment, but also with a new mobile phone or other contract due to negative Credit Bureau information, more and more people in Germany are trying to circumvent the Credit Bureau clause, especially when applying for a loan. Therefore, they resort to the increasingly popular option of a loan from abroad. As a result, Credit Bureau does not even know that a loan application has been made because other countries do not know the protection community as such.

Even if you are not granted a loan abroad, you at least avoid the risk that Credit Bureau will include the application as an item in a person’s Credit Bureau balance sheet.

Loans changed: loans changed online and loan with bills

Introduction

This article is a sort of complete guide to the loan changed, you can see the mirror with the main topics, each of which, if it deserves further clarification, has been deepened (see the menu on the right all the various topics covered. I hope you enjoy, we put the soul, also report any questions and clarifications and we will answer within our limits, the purpose is to make the most thorough guide to the loan with bills present on the internet, giving you only the information you need so that you can choose with maximum awareness: happy reading :).

In recent times of economic crisis and with a macroeconomic scenario in serious recession and employment crisis, credit institutions and financial companies have made efforts to offer credit customers (individuals and / or companies) new commercial and large offers. added value such as bills of exchange or loans with bills of exchange. Although the imaginary collective may think that this contractual situation is “outdated” and atavistic, today, the operational and commercial practice has absolutely reassessed the credit product assisted with the exchange rate. We see in this guide to better understand what it is and what the contractual and commercial discipline that revolves around the loans assisted by the release of bills of exchange. But, first we start from the analysis of the guarantee and the payment instrument represented by the bill of exchange, whose regulatory source is the Royal Decree of 14 December 1933 n. 1669.

The promissory note: peculiarities and requirements

The promissory note: peculiarities and requirements

The bills of exchange are securities of the order that attribute to the legitimate owner the unconditional right to be reimbursed a certain sum at a maturity indicated on the security; it is no coincidence that, in commercial practice, different types of bills of exchange exist according to the maturities such as: bills of sight, at a certain time, at a certain time, on a fixed day.

As sanctioned and contained in the Royal Decree 14 December 1933 n. 1669, in article 1, the bill of exchange must contain the following elements :

  • the denomination of promissory note (or money order or promissory note) inserted in the context of the title and expressed in the language in which it is drawn up,
  • the unconditional order to pay a certain amount (for the route) or the unconditional promise to pay (for the money order),
  • the name, place and date of birth, or the tax code, of the person designated to pay (person called “drawee” for the routes and “issuer” for the promissory notes),
  • indication of the deadline and place of payment (intended as the Municipality),
  • the name of the person to whom or to the order of which the payment is to be made (subject called “beneficiary”),
  • an indication of the place and date where the promissory note is issued,
  • the signature of the person who issues the promissory note (a person called “tractor” in the case of trafficking and “issuer” in the case of promissory notes). In promissory notes (promissory notes) the tax code of the issuer or the place and date of birth must also be indicated

The promissory note: commercial typologies

The promissory note: commercial typologies

The security or bills of exchange guaranteeing the loan can be issued in the form of draft bills or bills of exchange (the famous promissory note or promissory note).
The bill of exchange is nothing more than a payment order that the signatory (the tractor) provides to a debtor (drawee) for complete personal benefit or a third party (creditor / beneficiary).
The debtor is in the situation of accepting or not: in the first case, the subject becomes the principal obliged both towards those who will have to receive the payment of the debt and towards those who will be in possession of the documentary title by means of a turn.
The drawing subject remains however responsible, towards the creditor, both for acceptance and for payment; the only way to exempt yourself is with the provision of the liability for acceptance clause. Each of the creditors will be protected against all those who, after the drawing, will come into possession of the title.

The promissory note or money order is issued directly by the debtor and contains his promise to honor the obligation contracted with a certain beneficiary. In this case, the issuer always remains the principal.

Title of exchange: non-fulfillment, creditor’s actions

Title of exchange: non-fulfillment, creditor

If at the expiration of the exchange rate, the debtor does not ad hoc fulfill the contract, the creditor can proceed with the direct action, which can be asserted against the insolvent or any endorsers. This procedure is prescribed after three years from the expiry of the promissory note and entails a recovery of the credit, reported on the security by means of a payment order. In addition, the creditor in possession of an unsuccessful bill of exchange can raise the protest action and request the non-compliant the sum not collected, in addition to any expenses and interest. In addition, the beneficiary of the amount of the bill of exchange can act directly and automatically against the assets of the defaulting subject by means of an attachment, in order to satisfy them, by means of the liquidation.

Peculiarities of a loan with bills

Peculiarities of a loan with bills

Recently on the credit and banking market, with the impetuous economic crisis and the “tightening” of credit, the changed loans have returned to fashion and by popular demand, which allow you to sign a loan contract, the amount of which (capital + interest) is reimbursed by paying the bills, which acts as a credit and as a payment instrument.

The peculiarity of this form of loan is linked to the fact that the subscriber (both private / public employee and independent or retired person) will have to face the amortization plan by not paying a monthly installment with direct debit on the current account or postal order but, through the fulfillment of the bills of exchange effect at the bank branch indicated on the security itself.

Requirements needed

Requirements needed

As regards the requirements required by financial companies or credit institutions, to take out a loan backed by a foreign exchange guarantee, they can be attributed to the following:

  • be employees (private and / or public sector) with a paycheck or regular guarantees (in particular for requests for large amounts),
  • self-employed or VAT number holders, who must present the Cud or Model 730,
  • pensioners, who must show the monthly pension slip as documentation.
  • creditworthiness of the applicant ( no foreign exchange protest ),
  • any presence of a guarantee such as a guarantor, a life insurance policy or severance pay (for employees),
  • patrimonial solidity and ownership of real estate.

The amounts to be disbursed as a loan changed vary from a minimum of 1,500 USD up to the maximum amount of 50,000 USD, while as regards the duration of the installments, it varies from 1 year to a maximum of 10 years at the discretion of the credit institution or financial institution that provides it.

Loans changed for bad payers and protested subjects

Loans changed for bad payers and protested subjects

The accessibility to the promoted loans is also extended to the bad payers registered on the CRIF lists and to the protested subjects. (Here you will find all the specific information on how to access it)
In some cases, however, the bad payer must still meet the following requirements :
be the owner of a real estate property and sign or present an additional guarantee such as a paycheck and severance pay in the case of employees.

The maximum amount payable will be proportionate not only to the net monthly salary but also to the amount accrued for liquidation purposes.

In the event that other loans are pending, the financial capital must not exceed 1/2 of the salary received.

Additional guarantees are often and willingly required for subjects reported as bad payers or protested, especially for self-employed workers reported as bad payers to the CRIF: in this case it is necessary to present a life insurance policy or a guarantee that guarantees the obligation assumed from any contractual breach.

Even if the exchange rate allows the creditor to initiate an attachment action against the assets of the insolvent debtor, however, in commercial practice, banks and financial companies to protect themselves from any risks, require the stipulation of a surety policy. This is a signature credit capable of representing an additional guarantee given against an obligation assumed towards a third party. As reported in article 1936 of the Civil Code: “A guarantor is the one who, personally obliging himself towards the creditor, guarantees the fulfillment of an obligation of others. The surety is effective even if the debtor has no knowledge of it. “.

Advantages of a loan changed

Advantages of a loan changed

Compared to any other type of loan such as personal loans, assignments of the fifth and payment delegations, the exchanged loans are a form of fast financing for the applicant ; in particular, in cases where you need a sum in a few hours (24-48 hours) to face urgent expenses or to carry out unexpected projects. This is why we talk about fast, safe and online promissory notes: in less than 24 hours from the submission of the request, the credit company (bank or financial), assessed the documentation sent by the applicant and the reliability of the guarantees presented, approves or rejects the file communicating the outcome of the credit to the customer.

In addition, as we have already had the opportunity to highlight, the subjects who can apply for a loan changed are, in commercial practice, all catchment areas :

  • applicants with ordinary outstanding credit requirements capable of obtaining both “canonical” loans and those with a guarantee of exchange effect; in general, the latter are the fastest ones even if, more expensive,
  • applicants with “problems” of creditworthiness and with a previous financial history to say the least rosy; these are people who do not have an employment relationship or are not holders of a paycheck or have had particular previous problems in returning other loans. Even housewives divorced without a job can apply for and obtain a loan: in this case, the maintenance allowance of the ex-spouse is required as a guarantee of the loan. The endorsement could be an additional source and instrument of guarantee to face any negative repercussions that would derive from the default of the credit title.

For the beneficiary or creditor of the amount drawn up on the credit title, if the debtor does not punctually fulfill the obligation, the foreign exchange loan represents a “privileged” form since it can be based on the debtor’s assets in a faster, faster way and effective.

What are the disadvantages instead

What are the disadvantages instead

If, on the one hand, we have highlighted the advantages of the loans changed for the applicant and for the beneficiary, on the other hand, the disadvantages of this peculiar form of loan assisted by the guarantee of the guarantee of exchange credit must be highlighted. A first “problem” is represented by the promissory note itself, which is a form of protection and guarantee for the bank or financial company, which can immediately raise the protest action and start the immediate debt recovery. Failure to comply with the payment of the promissory note has very negative costly consequences : registration in the Protest Register could aggravate the debt situation, which is already very precarious. No further loans and liquidity may be requested until the insolvent debtor has proceeded to regularize the ad hoc situation.

Loans with bills of exchange are a form of financing which represent the “last valid opportunity” of access to the credit market. Often, a person who decides to use this form of credit has already tried the other credit routes with failure. The risk of taking out the foreign exchange loan is not free from rather expensive costs and burdens, which must be well assessed. Here is an example of a rate of interest rates required on a loan with bills:

Amount required Months of refund 50% Rate with interests 50% Rate without interest
$ 5,000 60 30 from $ 105.00 Taeg 8.33% 30 from $ 105.00 taeg 10.33%
$ 10,000 60 30 from 210 $ Taeg 7.49% 30 from $ 210.00 taeg 9.50%
$ 20,000 120 60 from $ 235 Taeg 6.49% 60 from $ 403.00 taeg 7.97%
$ 30,000 120 60 from $ 602.00 Taeg 6.93% 60 from $ 349.00 taeg 6.42%

As can be seen, the APR is rather exorbitant compared to the “average” of the interest rates applied on personal loans; to this must be added additional ancillary costs such as those related to the purchase of debt securities, the reloading of stamp duties, and the preliminary fees. That is why, before taking out such a form of loan, it is good that you evaluate all the cost items that weigh on the loan amount.

A “negative” note is also represented by the ancillary guarantees that can be further requested and subscribed: the presence of a guarantor, the signing of a life insurance coverage, a real guarantee represented by the pledge given that, pursuant to article 2784, this relates to movable property, credits or other rights.

Loans exchanged between serious private individuals

Loans exchanged between serious private individuals

In order to reduce brokerage or credit brokerage costs, an interesting variant of the changed loan was born on the social lending market, the one among serious private entities. It is a fast and reliable form of loan since it is possible to ask savers and lenders of funds and personal savings accumulated over time. Even a close family member or acquaintance can grant this form of loan through the issue of bills. A valid advice and form of protection for the lender of monetary funds is that of signing between the parties a private agreement which, according to the dictates of article 2702 of the Civil Code, it ” fully proves until the complaint of the fake, of the origin of the declarations by those who signed it, if the person against whom the writing is produced recognizes the subscription, or if this is legally considered as recognized “.

Take out a loan: at the bank or from a private person

A loan is always required when certain sums of money are missing that cannot be raised through own funds. The purpose for the loan is irrelevant. The purpose of the loan is of no interest to banks and credit institutions, particularly in the area of ​​small and consumer loans. On the other hand, it becomes more important if a loan is to be taken out to finance or build a property, since there are significantly different conditions there than with the other forms of credit.

A loan can be realized through various lenders. The most frequently used and, accordingly, the safest is the bank or credit institution. However, private lenders are also an option, especially for smaller loan amounts. Taking out a loan is not difficult and only requires less preparation

Taking out loans – Preparing for the loan interview

Taking out loans - Preparing for the loan interview

Before the prospective borrower starts applying for a loan, some preparation should be completed. On the one hand, your own credit needs should be precisely defined. What is important here is the fact that when issuing loans, fees are usually charged by the credit institutions, which must be counted towards the loan amount. It is therefore recommended to choose a high loan amount so that you have enough financial leeway even after deducting the fees. But the borrower’s own budget should also be revised in advance. Since these factors also play a role during the credit discussion, the lender should carry out all statements in a well-structured and written manner so that they can be presented during the credit discussion. The various budget calculators offered on the Internet are helpful here.

Monthly income and expenses can be compared to calculate the remaining available budget. For the sake of simplicity, annual and semi-annual payments should be counted down to the respective months so that a comprehensive and correct overview is created. It should be noted in these calculations, however, that banks generally want to leave a sum of between 10% and 15% of their monthly income in reserve so that short-term expenditure can also be made. These sums still have to be deducted from the total of the available budget. Now the borrower gets an overview of what the maximum loan rate may be. With this amount in mind, the borrower should now start comparing the different lenders. Again, the Internet offers the necessary tools.

Thanks to various loan comparison calculators, the loan terms of the different banks and credit institutions can be compared with each other. Here the borrower can now see directly which loan amount he would have to pay with which loan installment. Depending on the loan amount required and the possible rate, the term of the loan can be determined. Once the right and suitable bank has been found, the potential borrower can make an appointment with the bank. He should take the statements already made with him to this interview, as this can significantly speed up the process of lending. The appearance of the borrower is particularly important in such a conversation. Even if many criteria decide on the granting of a loan, the opinion of the bank advisor is also a criterion.

Well-groomed clothing and a calm, thoughtful demeanor are therefore extremely important in such a conversation. Carrying the calculation that has already been carried out further convinces the bank advisor of the serious intentions of the customer and of their comprehensive preparation. Further points can now be raised during the conversation. If the borrower can provide various types of collateral, this can not only have a positive effect on the valuation of his loan application, but also have a lasting impact on the interest rate. The more secured a loan is, the lower the bank can set interest rates.

Land, real estate, life insurance, savings contracts and retirement provisions can serve as collateral for loans. These are accepted as security by the banks and can be used to secure the loan. During the interview, a credit application is completed after a credit check and if the bank advisor is positive. The customer must sign this. In addition, other documents often have to be provided because the bank wants to secure them. The last payslip and a copy of the current employment contract are usually requested. This is how the banks hedge against a borrower’s default. If all the data are to the satisfaction of the bank, the loan can be approved quickly and without much effort. So the sum is available to the borrower within a very short time.

Take out loans from private

Take out loans from private

Taking out a personal loan is much less difficult than getting through the banks. However, one also has to take into account that a personal loan does not offer the security that a credit institution can provide. The sums that can be realized through a personal loan are often lower than in a banking business. The big advantage here is the flexibility of the loans and the lack of control by the lender. Even if a certain creditworthiness and a regular employment relationship should be proven, entries in the Credit Bureau for a personal loan are no obstacle. This means that even in difficult situations, a loan can be taken out if this would not be possible through conventional banks and credit institutions. You can either take out a personal loan from friends, acquaintances or relatives, or organize it via a mediation platform on the Internet. Thanks to the right preparation, smaller sums in particular can be quickly organized.

Taking out a loan is not difficult. With a little preparation time, every borrower can ideally prepare for an upcoming loan discussion. This preparation not only provides a better overview of the possibilities, but also ensures that banks and credit institutions have a much better reputation due to the planned approach.

How to recognize dubious credit intermediaries!

When arranging loans and loans, the credit intermediary can be quite helpful to get a loan. Credit brokers receive a commission for arranging the loan, which is paid either by the borrower or the credit institution. However, the commission is only paid when the loan to the customer is paid to the intermediary.

The activity of the credit intermediary in Germany must be documented by official approval. The loan brokerage contract is concluded between the potential borrower and the credit broker according to §655a of the German Civil Code (BGB) to ensure that customers are served properly and seriously.

The work of the credit intermediary

The work of the credit intermediary

Although a loan broker can bring benefits to customers looking for a loan, credit brokers still have a bad reputation in some cases. Even serious credit brokers cannot correct this overnight. However, from the huge range of banks and credit institutions, the credit intermediary can offer his customers exactly the loan offer that is tailored to the financial situation of the potential borrower. When filling out the contract, it is essential to pay attention to what the customer signs, because advance fees for expenses often indicate that a dubious credit broker is at work. Large credit intermediaries, as suggested by us, who have been able to establish themselves on the market for years, can certainly be used for the mediation.

With these intermediaries, an inquiry always remains free of charge, even if the bank refuses. At the same time, the credit intermediary prevents too many inquiries from being received by the direct banks, because each bank or credit institution notes in the applicant’s Credit Bureau that a credit inquiry has been made. This is how other banks see how many inquiries were started by the customer, the next bank then assumes that all inquiries have been rejected and therefore may not grant a loan. Because a bank always acts on the principle of caution and at the same time suspects the applicant’s poor creditworthiness, although there is still no evidence of a regular income. The credit broker also prevents customers from getting a bad picture from banks and credit institutions through too many inquiries.

Online loan brokers and their processing flow

Online loan brokers and their processing flow

In principle, it is possible to request a credit broker who works online at no cost, even if a rejection should occur. The credit broker also helps online to find the right loan for his client with the best terms and the lowest interest rates. You can choose between free credit, a small or urgent loan, but also a loan with specific financing goals. Car, modernization or real estate loans and construction finance, on the other hand, are earmarked and should only be used for their intended purpose. After the application by the customer, the credit intermediaries pass on the inquiries to the banks or credit institutions, which could be considered for the financing. Since credit intermediaries always work with certain banks, they can assess which bank could finance which project when they apply. Only when the bank signals that the customer’s credit application is being processed must evidence of monthly income, self-disclosure with monthly recurring fixed costs and the personal financial situation of the applicant and his family be presented.

This is how the customer recognizes dubious credit intermediaries

This is how the customer recognizes dubious credit intermediaries

Consumer advocates are always warning of dubious credit intermediaries who, through their behavior, repeatedly undermine the credit intermediary’s reputation. In order to recognize the dubious way these credit intermediaries work, customers should pay particular attention to the following:

Credit intermediaries who only send the application form instead of the credit agreement after the customer’s request for high cash on delivery costs. A prepayment is absolutely to be avoided, because here the customer only pays instead of getting a loan.

If credit contracts are linked to expensive insurance, this only costs money unnecessarily and the customer now has insurance, but still not the desired credit.

A credit intermediary is only entitled to his remuneration once the loan application has been granted by the bank or the credit institution. The amount of the remuneration must be anchored in a contract between the customer and the credit intermediary so that the customer knows what additional expenses the borrower may incur after the loan has been granted.

Reputable credit intermediaries always work in such a way that the necessary steps to obtain a loan are always understandable. To make sure that the credit broker works properly, inquiries and opinions from other customers on the Internet can help you find the right credit broker. Various forums can be used to find out what experiences other applicants have had with the various intermediaries.

These help with the first pre-selection, because if many customers rate this or that credit broker positively, then it can be assumed that the credit broker will do his job seriously and professionally. The experience of many customers with Astro Finance is very good.

However, applicants should always be aware that funding with a low or low income will hardly be possible. In this case, the credit intermediary cannot help that a bank processes the application for a loan at all. A realistic assessment of your own financial situation can protect against disappointments and at the same time avoid over-indebtedness.