Month: January 2019

Compare Personal Loans

Anyone who wants to get a personal loan through a bank in Germany can not avoid a Private credit query and a Private credit entry if the loan is granted. Even small blemishes in the Private credit file can prevent the granting of a loan. In addition, especially in the area of ​​Private credit-free loans, there are a lot of black sheep trying to exploit the customer and, for example, working with horrendous interest rates. The best alternative to this potentially disappointing path is called bon credit.

  • Crediter provides serious loans without Private credit for 40 years.
  • No Private credit information is required to check the creditworthiness and the loans are paid out without a Private credit entry.
  • Lending is kept strictly confidential. Neither employer nor house bank learns something from the credit without Private credit.
  • Thus, loans from Crediter are the perfect side-loan, with no effect on existing or future loans.
  • One receives only credits without Vorkosten. That means, the quotation does not cost a cent.
  • In addition, Crediter offers a telephone hotline that can be consulted by experts on loans, terms and other topics at any time.

It opens a window where you can specify in detail what loan you are looking for. So amount and duration, desired rates and even different preferences, such as low rates or low interest rates. Within just one day, Crediter will give you exactly the loan offers that fit your preferences and take your time to look for the best option for yourself. This complete process is free, regardless of whether a credit agreement actually comes about. If you opt for a loan selected by Crediter, you fill out the necessary documents and send them back to Crediter. The speed at which this step is completed is therefore also dependent on the customer. Now Crediter is reviewing the request. That is, it ensures that the customer’s income is sufficient to cover the loan and that there are no serious problems (for example, debt collection procedures) on the customer’s side. If the application has been successfully checked, the money is in the shortest time in the account. 

loan Test winner Crediter is by no means only an emergency solution if other banks have already denied a loan. Crediter also offers many advantages on its own

  • Cre-free personal loans from Crediter are a quick, uncomplicated affair. You are also never harassed by agents by phone or at home. The whole process runs online and by mail.
  • Everything happens completely anonymously. There is no Private credit entry, nor is the employer or the house bank aware of the loan. Thus, a personal loan offers via Cre Loan perfect as a subsidiary loan.
  • The loan request is free of charge, there are no pre-payments and even if the offers from Crediter should not suit, there are no costs.
  • A Cre Loan commission only accrues when a loan offer is accepted and disbursed.

 

Are loans between individuals dangerous?

Private loans are one more financing option that you can take into account when you spend an economic hardship and need money. In Asian culture they are very common. Not so much in the West, although in recent years they have become more popular due to the difficulties in obtaining financing through the banking system.

In this article we will explain exactly what loans are between individuals, how they work, what their interest rate may be, how they are regulated and, most important of all, why they can become very dangerous for the debtor.

What is a loan between individuals?

As its name suggests, a loan between individuals is no more than a loan that occurs between individuals, without the intervention of any conventional financial institution, such as a bank. The one who lends the money can be a friend, a relative or a third party that we do not know anything about.

The mechanics of this type of loans is very similar to that of a conventional loan: a creditor lends a certain amount of money to a debtor and the latter agrees to return it, together with their corresponding interest, within a certain period of time.

What characteristics does a loan between individuals have?

The interest rate applied to the loan can be very small (and even nil) if it is a friend or a relative who lends us the money. On the contrary, if the creditor is a third party, the interests that it will surely demand will be much higher than those we can find in the banking market. In the latter case, you may also ask for an endorsement, which if it is a mortgage loan will be the home.

On the other hand, the repayment term of these loans is not usually as long as that which a traditional financial institution could grant us, so that their repayment could become more complicated.

Why are private loans so dangerous?

Go ahead that the loans between individuals are one hundred percent legal and have existed since the origins of civilization. There have always been wealthy people who, in exchange for an interest or commission, have lent money to others who needed it.

At present, if the loan is personal, it is regulated by Law 16/2011 of June 24, whereas if it is a private loan with mortgage guarantee, it is necessary to resort to Law 2/2009 of March 31.

Whether it is a personal loan or a mortgage loan, the ideal is that the agreement is raised to the public, that is, that we sign it before a notary. This is the best guarantee for both parties to cover their backs if a problem should arise in the future.

In summary, we are facing a loan with a high economic cost and whose repayment term is smaller. In addition, it is not guaranteed by the Bank of Spain, so the risk to the debtor is even greater.

Our advice is that before signing it, you have very clear all the conditions that appear in the contract, as well as the obligations that will arise as a result of it.

 

Loan offer

The term credit is derived from the Latin word “credere”, meaning “to believe”, and “creditum”, which means “entrusted, which is based on good faith”. It generally refers to the transfer of cash or book money from a lender to temporary lending to the borrower. The borrower undertakes at the same time to repay in the future and often also to pay interest.

The path from the application of a borrower to the payment of the loan

  • An example for clarification:
  • Which special forms / sub-forms of loans are there?
  • Possible pitfalls in loan agreements
  • What can be done with negative Private credit or bad credit rating?
  • Current figures and interest rate developments for loan offers

 

The path from the application of a borrower to the payment of the loan

The path from the application of a borrower to the payment of the loan

In order for the loan application of a potential borrower to be decided positively, a number of prerequisites must first be met . Such conditions include the following:

    • Over 18 and German citizenship

First of all, the applicant must be of legal age, which means that he must have reached the age of 18. In Germany, citizens are only fully able to take legal action at this point in time, with the consequence that legal contracts can be fully effectively concluded. In addition, the applicant must have a main residence in Germany and have a German bank account.

    • Probation period over

In addition, it is important that the applicant is not in the probationary period of his employment, so he must be in employment for at least six months with his current employer. Why? Since the notice periods are shortened within the probationary period and thus represent a great risk for the lender. In addition to the exclusion of the probationary period, there is also the condition that an indefinite employment relationship must be present. Some lenders also allow a temporary employment relationship, but this should apply for the duration of the loan.

    • Sufficient income

The lender requires the presentation of proof of income so that it can be understood that the claimant also has enough income to repay the loan. In addition, some lenders also require you to submit account statements that fully track revenue and expenses over a three-month period.

    • Credit for own use

Another requirement is trading on your own account. What does that mean? This requirement implies that the applicant uses the loan for himself and pays for the resulting costs. This is to prevent the applicant from borrowing money for a third person who may not be financially able to make repayments in accordance with the contract.

    • No negative Private credit entries

Finally, it is checked whether the applicant has negative Private credit entries. The Private credit provides an insight into the personal payment behavior and the personal level of indebtedness. The score is calculated by the Private credit, which allows the lender to assess whether the claimant can repay the loan. For example, defaults on the Private credit have a negative impact.

After examining all these conditions and making a positive decision by the lender, the conclusion of the loan agreement and the loan amount are made.

An example for clarification:

Suppose the applicant needs a new car and wants to finance it with a loan. The prospect now indicates to a potential lender the loan amount over which he wants to complete financing with the help of a loan. Let’s say he needs $ 10,000. The lender now takes a close look at the conditions described above and examines their existence. Depending on the period for which this financing is to run, the interest rates will also decide . In the present case, we assume a loan period of 60 months. This yields interest rates of around 2.49%.

The lender will be able to disburse a loan amount of 10,000.00 euros. Now he has to pay installments of € 178.00 for 60 months, so that ultimately, including interest, a total amount of around € 10,800.00 will be repaid .

Which special forms / sub-forms of loans are there?

The type of loan is the basis for the availability, purpose and forms of repayment of this loan.

The most common form of a loan is the loan, which is usually concluded with a repayment agreement between two parties. There is also the form of cash credit. Here, a credit line on the personal checking account or a separate account, such as a disposition credit. There is also mortgage lending, which is one category of the loan. This loan is taken over a very long period of time, usually over 30 years. To secure this loan, liens are granted to the lender. There is also the possibility of an investment loan. In this case, objects of fixed assets are financed. It can also come to a working capital loan. These are cash advances intended to finance working capital. Further cash advances are goods financing or cash advances. Another form would be the borrower’s note loan.

Possible pitfalls in loan agreements

Possible pitfalls in loan agreements

The currently very low interest rates currently make the taking of a loan very attractive . Nevertheless, one should always be aware that there is a risk of hidden costs and information gaps. There are a few pitfalls that can be encountered when concluding a loan agreement.

    • Early repayment

First, many lenders take a fee for early repayment of the loan amount, this is called prepayment penalty. While this lender’s claim is still capped, it can be required of the borrower. The consequence of this limitation is also that the processing fees have been increased by some lenders.

    • processing fees

Upon termination of the loan agreement, these paid processing fees will not be refunded. In addition, combinations of loan agreement and residual debt insurance are not worthwhile. Caution should be exercised on this topic.

    • insurance premiums

When taking out a residual debt insurance, no insurance premiums will be refunded and an immediate period of notice usually does not exist either. In addition, one should always compare the offers of different lenders, before deciding.

What can be done with negative Private credit or bad credit rating?

Everyone is well aware of this or a similar situation: it is urgent to wash the clothes and just then the washing machine gives up its spirit and actually there is no money for a new one. A (small) loan could be the solution here. The way leads to the potential lender – who informs after a short time that the loan application must be rejected because of a negative entry in the Private credit.For many borrowers now the hope for a cash injection is lost. A negative Private credit entry is rejection number one in Germany.

However, there are ways to still get a loan:

First you could let a guarantor take part in the loan agreement. This means that a third party runs the risk of having to pay the loan agreement rates if the borrower is unable to pay. However, a better alternative could also be the direct lending of money from the guarantor. In addition, could lend to a life insurance. Finally, there is also the possibility to conclude a loan without Private creditauskunft. This option is open to those who have a permanent job and a regular income but are still burdened with a negative Private credit entry. Such a loan is granted if the applicant can demonstrate sufficient attachable income. The lender is usually a foreign bank. Another option would be a loan with the help of private investors. There are many private lenders who want to promote projects and help fulfill desires. The return is rather subtle. Of course, private lenders want to see collateral, for example with the help of a car.

Current figures and interest rate developments for loan offers

Interest rates on loan agreements change almost daily. This applies to private loans, in particular for mortgage lending contracts. Currently, interest rates are low, especially in the area of ​​mortgage lending. This state of affairs is shaped in particular by the monetary policy of the European Central Bank . This should strengthen the economy within the eurozone. The currently prevailing low interest rates are intended to encourage consumers to conclude loan agreements – in whatever form. At the moment loans are cheaper than ever.