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.

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