At the moment, private borrowers can look forward to an incredibly large variety of loans. Numerous banks and credit institutions now have several credit products in their portfolios that do not only differ in terms of use. The enormous variety of offers has once again increased significantly due to the online banks on the Internet. Since the introduction of the Internet into private households, the Internet banks have been able to record an ever increasing customer growth.

Anyone looking for an inexpensive loan offer today will certainly find what they are looking for at the online banks. In addition to attractive interest rates, they often also offer the free use of the loan amount. Accordingly, borrowers can also use a loan to balance their accounts, for example. It makes sense to use a loan to balance an account, because banks charge high interest rates especially for overdrafts.

This is important when comparing several loan offers

If you want to permanently secure the cheapest loan offer for account balancing, you should pay attention to the effective interest rate when comparing several offers. In contrast to the borrowing rate, the effective interest rate covers all borrowing costs associated with taking out a loan.

In practice, the bank takes into account processing, administration and provision costs as well as the term and loan amount as well as the creditworthiness of the borrower. By choosing the right term and loan amount, borrowers can have a decisive influence on the effective interest rate and save a lot of money.

If you opt for a short term and a low loan amount, you have to expect significantly lower borrowing costs for borrowing. This is simply due to the increased credit default risk with high loan amounts and long terms, which the banks naturally take into account in the interest rate. Last but not least, the creditworthiness of the borrower is also important. Those who have a regularly high income and a positive Credit Bureau can secure the best interest by far.

A loan to balance the account should, if possible, always offer the special repayment, the special repayment enables the loan to be repaid early and usually free of charge. The liabilities can be reduced directly through a special repayment with a one-off payment, so that the credit costs can be reduced again.

Find credit to balance your account with the best terms

With its numerous financial portals, the Internet now offers the possibility of quick and easy loan comparison. Since borrowers can take individual information into account when comparing with a loan calculator, the use of a loan calculator is highly recommended. By taking well-defined framework conditions into account, the borrower can quickly filter out the best offers and, above all, save a lot of money in the long term.

In its file, Credit Bureau not only enters reports of financial misconduct, but also information about every borrowing and telecommunication contracts. Colloquially, consumers only refer to registered negative characteristics as Credit Bureau entries.

A guarantor is liable to the financial institution for the repayment of a loan if the actual borrower cannot make it. However, private guarantees involve risks for a bank, because in some cases legislators consider them to be immoral. For this classification, it is sufficient that the guarantor takes over financially and the bank was able to recognize this fact. Borrowing is often possible even with a Credit Bureau entry without a guarantor.

The Credit Bureau entry does not completely exclude a loan

While direct banks often actually view every negative feature as a reason for excluding the loan, traditional banks in some cases grant a loan despite Credit Bureau entry without a guarantor. The prerequisite is that the Credit Bureau entry was forfeited some time ago and that it is a soft negative feature. Ideally, the loan applicant can prove that his financial circumstances have changed significantly since the Credit Bureau entry was forfeited.

Many consumers forfeit a Credit Bureau negative feature during a period of unemployment and live in secure financial conditions after starting work again. In this case, the house bank is a suitable point of contact for a loan despite Credit Bureau entry without guarantor, since it can easily check the applicant’s improved economic situation based on the account management.

Alternative ways of borrowing with Credit Bureau entry

Several soft negative features as well as a hard or a fresh soft negative entry often lead to the fact that all German financial institutions do not grant a loan despite Credit Bureau entry without guarantor. In this case, it is advisable to use Credit Bureau-free loan options. The classic form of a loan without Credit Bureau is the pawnshop loan. The pawnbroker receives a pledge as security for the lending and therefore does not require any information from Credit Bureau.

Less well known is the possibility of loaning an existing life insurance contract or private pension insurance. In this case, the insurer pays out the desired loan and waives the demand for credit protection, since its customer is liable for the repayment of the loan with his own assets. However, borrowing from mortgaging life insurance or pension insurance does not make sense for government-sponsored contracts because the government reclaims the allowances granted.

Another alternative for a loan despite Credit Bureau entry without guarantor is borrowing in Switzerland. The banks based there are not Credit Bureau contracting parties and therefore do not receive any information about any negative entries that may exist. However, they require a higher minimum income than most German credit institutions and, with a few exceptions, limit lending to 3500 USD.

Love has entered mutual life and with it the crown of love. The baby is there, long awaited and greeted joyfully. But financial joys often come with joy. Not only does the baby cost money, but the income is reduced. Most of the time, young parents have not yet saved anything and so the question of a loan is raised. But how can a loan be taken out despite parental allowance?

The loan despite parental allowance – the prospects

The parental allowance is a benefit granted by the state so that a partner can take care of the baby if he wishes. It is usually the mother who takes this place. If the mother was employed before the birth, she now receives 67% of the previous income as parental benefit. This payment is limited in time, it is only paid for 12 months. If you want to bridge the financial bottleneck with a loan despite parental allowance, you have to expect difficulties with a loan.

Parental allowance, like child benefit, is a state benefit that is not subject to attachment. This means that this income will not be included in the banks’ budget. Therefore, the bank has to accept a reduced income. The bank and the parents often do not know whether one of the partners will return to work after parental leave. Even if part-time employment is targeted, income remains lower than before birth.

A loan despite parental allowance is not approved if the mother is a single parent, even if she could pay the loan. The reason is that the parental allowance is limited in time. A different situation arises if the loan can be repaid within 12 months, despite parental allowance. But then the rates will be high, which under certain circumstances cannot be paid.

Even with the constellation if both partners have taken out a loan before the birth, the credit chances can be reduced. This process also reduces the creditworthiness of a loan despite parental allowance. The bank regards lending as a risk during this period. Because nobody knows what comes after the time limit. If the single parent becomes unemployed and then receives unemployment benefits or other social benefits, the installments could also no longer be paid and a loan default could result.

A completely different option is available during parental leave, namely when a partner can demonstrate a full-time job and sufficient income. The partner could then take the loan application in his name or at least secure the loan as security. Then the bank will grant a loan since it has two incomes as collateral for at least one year.

However, this project cannot be considered if no partner is available. One could ask for a guarantor among friends and acquaintances. But that’s also one of the things, because the guarantor is extensively checked whether he can easily pay the installments in the event of a loan default. The guarantee is also entered in the surety of the guarantor, which reduces its own credit rating.

Can the overdraft facility be an option?

Often, the loan amount is not so large that the overdraft facility could be used. Banks make the disposition loan freely available to their solvent customers. However, the overdraft facility is expensive, it has an interest level in the double-digit range, some banks charge up to 15% interest. If the credit line granted is exceeded, an additional 5% interest may be incurred.

If you use the overdraft facility, you should make sure that you can pay back within a few months. Repayment would be possible with small installments, similar to an installment loan. If the job is taken up again after parental leave, the overdraft facility could be converted into a small installment loan, which is definitely cheaper.

The alternatives to credit despite parental allowance

A loan despite parental allowance can also be successful with a consumer loan. Many retailers, furniture stores and mail order companies offer the opportunity to purchase everyday items. The customer is often surprised with particularly cheap offers. Think of the 0% financing here. For example, the furniture for the children’s room could be bought in a furniture store.

Even if you are an existing customer in a mail order company, you can fulfill your wishes in installments. In addition to the initial equipment for the baby, this can also be the stroller or the furniture for the children’s room. If the installments were paid on time, then further installments are possible without asking for income. However, if the credit rises above 1000 USD, the mail order company will carry out a more stringent credit check. The goods remain the property of the mail order company until the loan is paid.

Another way to get a loan despite parental allowance are the credit portals. There, private investors offer money to customers looking for loans. If a sufficient number of private investors trust their parents’ loan request, the loan can be successful, for example, via Spin Lender or Across Lender. However, loan seekers should make their loan request understandable and trustworthy. Even if there are negative entries in the Credit Bureau, it should be mentioned consciously.

If the young parents have bad Credit Bureau, banks will refuse the loan simply because of the parental allowance. Usually there are Credit Bureau-free loans that are intended for people who have negative entries in Credit Bureau. However, these banks also have strict requirements for their customers. Income must be sufficient and above the garnishment exemption limit. For a single person that would be a net 1,160 USD.

In addition, the foreign banks require a permanent job that has existed for at least one year and may not be temporary. Parental allowance is also not counted as income at these banks and therefore only the salary remains as security. The Credit Bureau is not queried and the credit is not entered.

If a partner now has a full-time job with a sufficiently high income and a permanent position, the credit could be in his name. However, this only makes sense if the partner also has a bad Credit Bureau. The loans are not cheap, the interest rate is also in the double-digit range similar to the overdraft facility. The loan amounts are also limited. Most of the 3,500 USD are approved, which are repaid in 40 monthly installments, the rate is 105.00 USD.

 

If an employee has been unemployed for a long time and has finally found a new job, then a trial period must generally be completed. Even people who have finished their training and are starting their careers start with a trial period. However, there will be problems with a loan during the trial period. Banks usually only lend money to customers if there is a permanent contract.

The reason banks see this is that neither the loan seeker nor they themselves know what will happen after the trial period. Does the employee receive a permanent contract, a fixed-term contract or become unemployed again? This scenario is too uncertain for banks and they are very reluctant to take a loan during the trial period.

The overview

The trial period is an arbitrary thing that comes from the employer. A trial period helps employers and employees get to know each other better. A trial period has been agreed so that both sides have the same opportunities. In this way, the employee and the employer can dissolve this relationship at any time. The trial period lasts about six months in most cases.

Before banks approve a loan, they thoroughly examine the customer’s economic situation. In addition to the income, which must be above the garnishment exemption limit, employment is also checked. If the employee is still working during the trial period, banks require collateral. The risk of default seems too high to them. Proof of creditworthiness is checked using proof of salary, bank statements and a copy of the employment contract.

Impeccable Credit Bureau is just as important as permanent employment and a sufficiently high income, and must not contain any negative entries.

The cautious approach is explained by the fact that the employee becomes unemployed again after his trial period. Income is reduced from one month to the next. Many customers who were in a similar situation could then no longer pay their loan because the money was simply missing. If credit is taken into consideration during the trial period, then the customer must also act with foresight. He can do this, for example, by setting the installments so that they are still payable in the event of unemployment.

The amount of the loan should also be reconsidered. Maybe a small loan amount is enough to pay for the necessary things. In such a case, banks without collateral will not approve the loan during the trial period. Unless the customer can name a property, a loanable loan, a second borrower or a guarantor. Banks often also offer residual debt insurance which pays the installments due when unemployed.

Here, however, the customer should read the conditions of this residual debt insurance very carefully. Because the protection often only takes effect after a certain time or it only takes effect with reservations. This type of insurance is also very expensive. The premiums are added to the loan amount completely, which not only increases the loan amount but also the customer pays interest for the insurance. Anyone who now needs a small loan generally does not actually need any residual debt insurance if he sets the installments in such a way that they can be paid even under difficult conditions.

The reasons for a loan during the trial period can be varied. Most of all, a car is needed to drive to work. If the employee opts for a high-quality car, he could deposit the vehicle letter with the bank. She sees the letter as security and the loan could be approved during the trial period.

Is the overdraft facility an option?

If the worker has an urgent need for money and the amount is not too high, the overdraft facility could be a solution. If there are no abnormalities in the account movements, the bank will leave the credit line intact. According to how high the income was, there might already be a disposition of up to 6,000 euros or even more. This can be used to pay for or buy something.

However, the overdraft facility is very expensive, it has an interest rate in the double-digit range, there are banks that charge up to 15% of interest. If the customer then exceeds the credit line granted, the bank can calculate an additional 5% interest. The overdraft facility is actually intended for short-term use. If it can be quickly offset, the overdraft facility could be the solution for the loan during the trial period.

If the employee then receives his permanent employment contract, the overdraft facility can be compensated or converted into an installment loan. In any case, this creates a better interest rate.

The guarantee

But what if the overdraft facility is already exhausted and the bank refuses to increase it? The option to get a loan during the trial period is to pay the loan within the trial period. However, high installments then have to be paid, which not every employee can pay. If there is a possibility not to pay the loan during the trial period, a guarantor could be named to serve as credit protection.

The guarantor can come from the family, but must be solvent. This means that if the borrower defaults on the loan, the guarantor is obliged to do so. Therefore, he must have a sufficient income to guarantee that the loan installments can also be paid. Likewise, the Credit Bureau must be impeccable, there must be no negative entries in it.

The bank will require a joint and several guarantee, which equates the guarantor with the debtor. If the customer no longer pays, the guarantor is immediately taken into recourse. The same thing happens with a co-applicant, who, however, is jointly and severally liable from the start.

Credit Bureau free?

If the Credit Bureau of the loan seeker is bad, however, there are negative entries in it, then a Cream bank will not grant a loan during the trial period. In this case, there are the Credit Bureau-free loans that are heavily advertised on the Internet. However, these banks also require permanent employment, which must have existed for at least one year.

 

If you are looking for a loan, you do not have to pay in advance. Prepayment is an instrument used by credit intermediaries who do not work seriously. But why do you hire a loan broker? There are loan seekers who have a bad credit rating due to negative entries in their Credit Bureau and were rejected by local banks.

Credit brokers promote the Credit Bureau-free loans, which are often the last lifeline for people with limited credit ratings. However, there are black sheep among the brokers who require payment in advance before the customer has even received a loan application. This is not allowed, a credit agency receives the commission only after the loan approval. But is there a loan without prepayment?

The outlook

The credit without prepayment is part of normal banking. People who hire a credit broker because they do not get a credit in this country due to their limited creditworthiness are often ripped off by the broker asking for prepayment before anything is started. If this happens to a loan seeker, he should look for another intermediary. Not all credit intermediation should be done badly, but caution is advised.

The customer, who has already received a number of loan rejections in this country, turns to a credit broker in an emergency. After all, they advertise on the Internet that they can promise a loan to every customer, even without a credit check. The customer only has to pay in advance or sign insurance contracts. Ultimately, the customer has no credit, but an insurance policy that he doesn’t need at all.

However, the situation on the financial market is such that most banks and credit intermediaries issue every loan without prepayment. Before a loan is approved, the bank checks the income, the Credit Bureau and the permanent position. If the customer can meet the conditions of the bank, there is a credit without prepayment. However, there are loan applications that are rejected due to poor creditworthiness if the income is too low or the Credit Bureau is bad. This is where credit brokerage comes in. because their advertising is aimed at these customers in detail.

Often you can find a credit with prepayment for the Credit Bureau-free loans. If the customer pays, they will receive the loan rejection within a few days. But he never sees the advance payment again. However, if he has commissioned a reputable credit broker, he will very well get a loan without prepayment. Serious credit brokers can be recognized by the years of experience with which they do business. ‘Even strong brand-certified agencies and those tested by the German Company can be classified as serious.

Certainly no credit broker works for free, but he will only get his commission after the loan approval.

The Swiss loan with a credit broker?

It is the Swiss loan that always appears in negative light. These loans have been around for decades. But it is the credit intermediaries that have given this credit a bad name. The Cream bank and Lite bank are reputable business partners who of course know nothing about a prepayment. A serious loan from Liechtenstein, for example, is always a loan without prepayment. Although the loans are subject to a higher interest rate, the bank does not use the Credit Bureau query, and the loan is not entered.

There are various ways to apply for a loan from Liechtenstein or Switzerland. The aforementioned credit brokerage and the customer himself can submit a loan application to the bank. These banks have a website and simple platforms that everyone understands. The loan processed by a credit broker without advance payment saves the customer a lot of time and nerves. All he has to do is provide the necessary credit documents, the credit intermediary does everything else. For this he calculates 5% of the loan amount as a commission.

Especially with financially weak people, dubious loan brokers do their business. A loan is promised, but prepayment is required for the loan to be approved, the intermediaries say. But here only the broker does a good business with prepayment.

The credit without prepayment

If you are looking for a loan without prepayment, you are right with your house bank. Other branch banks or direct banks also grant the loans without having to calculate advance payment. If the loan is rejected because a negative Credit Bureau entry is responsible, it does not have to be the end. There are banks that grant a loan even with this limited credit rating. However, caution should be exercised here, because there are also black sheep among these providers. The provider should be carefully selected. Prepayment is no serious work, just like insurance contracts.

The customer can submit the loan application directly to the selected bank, which grants no-Credit Bureau-free loans. With a credit comparison, the customer can see whether these loans are on offer by the provider. However, advertising promises such as Credit Bureau-free loans up to USD 100,000 are simply an exaggerated advertising strategy, but unfortunately many customers still fall for them.

Generally, a loan without advance payment is only approved if there is a sufficiently high income that has a attachable portion of at least 100 USD. Those who earn less will not receive a loan. There must also be a permanent position, which must not be limited and should not have a trial period. Proof of creditworthiness is determined on the basis of payslips, bank statements and a copy of the employment contract.

The customer must be of legal age and must not be older than 62 years. The place of residence and the current account must be in Germany. The peculiarity of this loan are the restricted loan amounts. In most cases, three sums are approved. The $ 3,500 loan is the most approved loan and has a rate of $ 105.00. The other two loan amounts are 5,000 USD and most recently 7,500 USD. The terms of all three loans are 40 months, the interest rate is in the double-digit range. It is recommended to pay the loans on time because the bank will initiate the garnishment immediately in the event of a payment default.

 

 

Large debts are unproblematic if they are matched by appropriate assets and the repayment takes place over a long period of time. They are of concern if the payment of credit installments consumes a large part of the income.

This means that homeowners can safely take out a loan despite high debts a few years after the purchase, while other indebted consumers find it difficult to obtain a loan. Existing liabilities are recognizable for full banks in the Credit Bureau information. In addition, the borrower ensures that he can repay all future installments on time despite the existing debt.

The bank loan for high debts

Whether the bank grants another loan despite high debts is less based on the absolute amount of the debt than on the monthly loan installments. These must be commensurate with the disposable income for the approval of an additional loan. Since there are no fixed repayment obligations for the overdraft facility, for a call credit and for the credit card account, these types of credit are generally not taken into account when checking the ability to repay.

However, their use for long-term financing is not recommended since financial institutions charge higher interest rates for these forms of credit than for installment loans. If the bank refuses further borrowing due to excessive existing liabilities, the additional loan can still be taken out with another applicant. In the case of couples, it generally makes sense for the previously less burdened partner to apply for the loan if he has sufficient income. A Credit Bureau-free loan is possible in spite of high debts, since the federal bank is not aware of existing liabilities without a Credit Bureau request.

The amounts are limited to 3500 to 5000 USD, and lending also requires a sufficiently high income from work. Unlike many domestic financial institutions, Cream banks do not take child benefit or any additional income into account in their household calculations, but only the regular wages from their main job. Credit brokers often state in advertisements that their customers get a loan despite high debts and even with low income.

Since the service providers represent a large buying power face-to-face banks, they actually often get a loan, even if the borrower would fail with an application submitted directly to the financial institution. The commissioning of a credit intermediary is risk-free if he works seriously and, according to the legal basis of his activity, only asks an appropriate commission. As soon as an intermediary calculates preliminary costs, doubts about its seriousness are appropriate.

Alternatives to bank loans for high debts

An order on an installment payment basis in retail is possible regardless of existing liabilities, since Credit Bureau dealers only report possible negative characteristics, but no existing debts. So that installment payments can continue to be used as a dedicated loan despite high debts in the long term, consumers make sure that all invoice amounts are paid on time at their main source of purchase. Every delayed payment deteriorates the internal creditworthiness and jeopardizes the future approval of partial payments, while renewed Credit Bureau requests from existing customers are unusual.

On a website for private loan brokerage, a loan can be applied for despite high debts if the lenders registered there classify the intended use as worthy of funding. One of the larger brokerage platforms enables borrowers to either submit their application with or without a Credit Bureau request.

Since private lenders reward complete information through an increased willingness to subscribe, honest communication of the existing debt is recommended in most cases. The fact that traditional banks refuse the desired loan despite high debts encourages private lenders to take out loans for social reasons.

Debt restructuring as a special case

Debt restructuring is a special case of a loan despite high debts. This can be combined with a moderate increase in the total loan volume and is primarily used to reduce loan costs. For this purpose, the new lender will replace all existing liabilities, so that the customer will only have to repay one loan. The savings effect of the debt rescheduling loan is based on the fact that the interest on the new loan is lower than the interest cost of the previous loan.

The particularly costly forms of credit such as the overdraft facility and the credit card credit line are included in the debt restructuring. Long-term successful debt restructuring requires that the borrower behaves in a disciplined manner and does not immediately take up existing credit lines. The new lender ensures the use of the loan to repay the loan by paying the loan amount directly to the current credit accounts wherever possible.

Anyone who applies for a loan knows that this will result in considerable costs. However, they are usually offset against the loan amount. The cases where costs are calculated before a loan approval are in the area of ​​dubious credit intermediaries and are a rip off. The Dresden Higher Regional Court decided back in 2012 that the loan is the rule in Germany without any upfront costs. Processing fees that banks charge are also not permitted.

The banks, however, charge the processing fee if a loan was obtained. The banks were prohibited from doing so on the grounds that a loan request was in the bank’s best interest. Basically, not much has changed because the banks are now shifting the fees to the interest rate. Not only the banks, but also credit intermediaries with no upfront costs, work seriously.

What is credit intermediaries?

The process of the dubious credit broker is always the same. The customer makes the loan application. The credit broker informs the customer that in order to actually be granted the loan, preliminary costs have to be paid. The customer does this in the belief of also getting a loan. But there is no credit here, but the terse reply from the credit broker that he could not have found a lender, and the loan declined. However, the customer does not see his preliminary costs again.

However, dubious credit brokers are not the only ones who have to pay upfront costs, the customer is often visited at home and is practically urged to sign an insurance contract. This is often not followed by a loan, but the customer has to pay the insurance premiums. There are also many credit intermediaries who sell advisory contracts, call expensive advisory hotlines and calculate undetectable expenses. A reputable credit broker with no upfront costs doesn’t work that way.

But why hire a credit broker at all? If the financial situation is difficult and the search for a loan proves to be exhausting and because many inquiries have had no result, a reputable credit broker is practically the ideal place to look for a loan. Many people have difficult financial circumstances and because of this, the work of a credit broker will be an important tool.

But there are not only reputable credit brokers on the internet, many alleged credit brokers also want to cut a piece of the cake, but only ask their customers to checkout without creating an equivalent. A trustworthy credit broker with no upfront costs will not require advance payment in advance.

A reputable credit broker with no upfront costs works on a success basis, meaning that he only receives his commission after the loan approval. A reputable credit broker will not charge incomprehensible expenses. Here the customer should be on the lookout for a reputable credit broker.

There are many credit intermediaries who sometimes work with foreign donors. To establish contact, a call or an Internet connection is sufficient, which does not cause any great costs. The reputable intermediary will submit his loan application with all necessary and transparent costs such as the effective interest rate, the interest and repayment rate, any loan security, non-mandatory additional offers such as residual debt insurance and all detailed information regarding a loan to the customer.

The guide of the reputable credit broker

The Internet spills over with loan offers from loan brokers. The customer can then lose track of things. Therefore, the loan brokerage should be chosen carefully. There are a few clues as to how the customer can recognize a reputable credit broker without any upfront costs:

– the credit intermediary has been working in this branch for a long time
– Registered tests such as from the German Company
– Careful checking of the customer’s creditworthiness
– all inclusive credit agreement open and transparent
– No calculation of preliminary costs or prepayment
– no home visits
– no expensive hotlines
– no cash on delivery fees
– do not require a reorganization or consultancy contract
– a bank employee should be available when the customer calls
If the customer pays attention to these things, he will find a reputable credit broker with no upfront costs.

The work of the credit intermediary

The reputable credit broker has an advisory function and can even obtain a loan in difficult cases. Customers often do not have the right overview of online loan offers. The credit intermediary can also help here. It is the customers who have a poor credit rating and turn to a credit broker. A loan has often already been refused. The advertising of the credit agencies promise all types of loans to customers with poor credit ratings.

In Germany there are more and more non-solvent citizens and thus the business of credit intermediaries is flourishing. Customers should avoid particularly large-scale advertisements that promise loans in all situations and with all loan amounts. If he adheres to the aforementioned features, he will also hire a reputable credit broker without any upfront costs. Basically, when lending, if a customer has no income, if he has negative entries such as a garnishment or an oath of disclosure, no permanent employment, he will not receive a loan, no matter what the advertising promises.

A reputable credit broker with no upfront costs is exactly like a reputable bank. He checks the creditworthiness of the customer extensively and makes no promises that are not tenable. Credit intermediaries can be found as commercial brokers in a company or they offer their services to insurance companies or financial companies. There are also special large credit agencies that cannot afford to work frivolously. They all have a good reputation to lose and he’s hard cash in this industry.

Processing fees are also not permitted

A reputable credit broker makes his good contacts. Often there are explanations in the work of the mediator why a negative Credit Bureau has arisen and thus have a mediating position. Many credit intermediaries receive their commission from the lending bank, so customers can be sure that they do not have to pay any upfront costs.

The law stipulates that a credit broker is not allowed to charge upfront costs, but reputable banks are also not allowed to charge processing fees. Legislators clearly state here that all checks by the bank are in the interest of the bank. If there is no credit, the applicant does not have to pay any fees,

The difference between nominal and effective annual interest is considered as the bank’s income. This includes all the costs that make up a loan, including the processing fees.

Even for the Credit Bureau-free loans that come from abroad, no upfront costs are common. The loan request is also free of charge.

 

Many people are dissatisfied with their job and are considering a change. Of course, changing jobs like this also carries risks, because nobody can predict whether the new work environment will be better or worse.

But problems can also arise from a completely different side. The banks are initially skeptical about a professional change, at least until the end of the trial period and take on a permanent job. 

The problem when changing jobs

For banks, it is ideal if the customer has a permanent job with a regular income. If there is a change of job, the professional situation is initially uncertain. A credit decision in favor of the customer is unlikely under these conditions. Anyone planning a loan despite changing jobs should apply for one before switching. Nevertheless, the borrower should carefully consider whether a loan is absolutely necessary under this premise. What happens if there is no transfer after the trial period? Can the installments still be financed?

How do you get money when changing jobs?

If the bank refuses a loan despite changing jobs, other options remain open. First, the overdraft facility can be used on the checking account. This does not even require consultation with the bank. However, this is a very expensive variant, because there are double-digit interest rates. The amount of this overdraft is based on the previous incoming payments and can help over a small financial bottleneck.

The range of lenders has expanded in recent years and a new market has emerged. We are talking about personal loans. In the background are private people who see lending money as an investment. The guidelines for lending on these platforms are not interpreted as strictly as is the case with banks. Therefore, there is hope to get a loan this way despite changing jobs.

The Swiss loan

In order to apply for a loan from a Lite bank, a permanent employment relationship is required. A request directly after a job change is pointless here, because the banks require that the borrower has been with the company for at least one year, which of course is not the case when changing jobs. These Swiss loans are used by people who no longer receive money from Infra banks due to their negative Credit Bureau entries.

However, a permanent job is the basic requirement for a loan to come about. After all, the banks in Switzerland do not waive their collateral either. If the borrower does not pay, the bank can have the attachable part of the income attached. This security is sufficient for the banks to grant a loan.