“Borrowing quickly” is sometimes easier said than done. Questions accompany the credit request: Where is credit cheap, what can I do if no credit is granted?
We support your financing requests with information and offers from the loan comparison. Our credit advisor explains what lenders look for and how to get around credit hurdles.
Taking out a loan – requirements
Granting credit means derived from the Latin “credere or creditum” to lend something to “good faith”. A debtor (borrower) can take out a loan if the creditor (lender) trusts them. The computerized world summarizes trust in the ability to repay and the willingness to repay as a numerical or numerical value.
This value is called the score. The score shows how high the risk of credit default is. The score summarizes all information about contractual compliance in the past and data from comparison groups. Overall, the comparatively modern credit check procedure ensures relatively secure and, above all, fast lending.
If someone wants to take out a loan online or at their house bank, the majority of them use a computer program to decide in real-time about the granting of credit. In addition, the computer checks that there is a sufficiently high attachable income share. Whether the borrower can actually afford to pay the installment is decided on the household bill.
Taking Cheap Loans – Loan Models and Interest
Some loan offers are characterized by particular flexibility. Examples would be the overdraft facility, the credit card or other short-term loans. Each of these loan examples is particularly easy to approve, and often there is not even an application made to the overdraft facility. The bank automatically grants the discount frame. If there is not enough money in the account, the overdraft facility automatically ensures liquidity.
The disadvantage of this convenient form of borrowing is high-interest rates. Short-term loans often cost up to 8 times an installment loan. Taking out a loan, flexible but not as expensive as the overdraft facility, would be possible with a credit line. As with the overdraft facility, interest would be paid on the credit line only for withdrawn funds. The loan can be called up and repaid in any amount.
The money is actually available about 24 hours after the call-up of a partial amount or the total amount.
An installment loan is the loan option with the lowest interest rates, but at the same time very inflexible. Approved credit is paid out in one sum. Applied via Good Credit, the money can be available approximately 48 hours after the legally binding application. Fixed payment obligations are a disadvantage. The rate must be transferred on time every month. A little more flexibility is only possible with installment loans with payment breaks.
When does the credit approval problem arise?
Credit institutions (commercial lenders) may only grant “secure credit” across Europe. If the score shows a risk, the household bill does not work or the income is too low, problems arise. Credit institutions reject the application or require additional security. Nevertheless, the loan of choice does not necessarily have to be secured by a guarantor or the loan is waived.
Free credit comparisons also show offers that are a little more expensive for a reason. Risk premiums may well make it easy to approve the loan again. Taking out a loan is not quite as cheap because of interest rates dependent on creditworthiness, but it keeps convenient access to the installment loan open. If an interest mark-up is not enough to secure credit, risk credit is an alternative.
In the case of risk credit, which is made possible by a handful of commercial providers – often advertised as a loan despite Schufa – the individual case is examined. For the credit check of the individual case, the decisive criterion is not the score or the Schufa excerpt, but the submitted documents. Account statements and other attestations must prove that the score is incorrect and that lending is still secure.
Taking out a loan without Schufa would be a special case. Commercial lenders from Germany have to work with Schufa. It is still up to you whether you pull out a Schufa statement, but you must report approved installment loans to Schufa. Without Schufa means that a foreign bank with admission to lending to Germans can completely exclude Schufa.
Loan brokerage – always risky?
Obtaining credit, even in difficult cases, promises the advertising of every credit broker. Unfortunately, the big words do not have to be followed by deeds, since no credit intermediary decides on the lending itself. He only arranges credit and is not enough money himself. Credit brokerage would be risky if dubious business models are offered.
Typical examples are credit advertising with the aim of selling insurance, credit cards, investments or savings models. Tangible fraud may be assumed if the intermediary requests advance payment, for example, documents on delivery. Despite all the warnings in the media, borrowing through intermediaries can also be very serious. The credit portals Good Finance would be prime examples.