Browse Month: April 2020

Compare loan offers of different institutions.

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

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

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.

Loan despite Credit Bureau entry without guarantor.

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

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

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.

How to take out loan despite parental allowance.

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 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?

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

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.