Payday Loan for Mothers

Borrowing for mothers varies depending on their specific life situation. While banks grant loans to working single mothers without hesitation, the perception of parental leave is a hurdle to borrowing. Mothers living in a stable partnership are best off taking loans together with their partner. Read http://indynda.org for a critique

The peculiarity of the household bill for mothers

The peculiarity of the household bill for mothers

Banks use their current income as part of their budgetary accounts, although parental allowance is usually not counted as such. The reason for this is that it is a temporary state payment; However, if the parental allowance is not counted, it will be overlooked that the mother will again receive earned income once it has been abolished. The child allowance, as well as the maintenance of the child, are among the fixed income recognized in a household bill.

If, as a result of the revenue and expenditure statement, the bank finds that it can not disburse the desired loan for mothers, it often helps to extend the repayment term due to the reduced monthly credit installments. Alternatively, grandparents may appear as guarantors or co-borrowers.

If a loan for mothers is used to finance items that are necessary for the child, even lone mothers should objectively seek to borrow together with their fathers. Mothers even foresee unanticipated expenses when planning their repayment, so that they will not be forced later on to borrow further or to make a costly change to the repayment agreement with some banks.

Assistance from the state and payday loans

Assistance from the state and personal loans

If mothers receive Hartz IV benefits, they can apply for an interest-free loan to the Job Center for necessary purchases, with installments withheld in small amounts from future benefits. In temporary emergencies, social services can also provide interest-free credit for mothers, even if they cover their own livelihood. Many universities have a Student Mutual Loan Fund, which is managed by either the Student Union or the Student Council.

Another way to successfully apply for a mothers’ loan is through websites for private individuals. The official operator of the respective websites is one licensed bank each, while the credit decisions are made by private individuals. After looking for a loan mothers describe on the corresponding websites their life situation and indicate what they want to use the credit sought.

The lending is sometimes done by a single lender, usually provide several people the desired loan in each case partially available. The actual loan transaction takes place via an account of the bank which operates the credit intermediation website. Since many of the registered private lenders are strongly guided by the personal situation of a borrower in their decisions, loans for mothers can be easily taken up through a private mortgage lender.

Compare Car Loans

A credit comparison provides in such cases numerous offers at much better terms. Another advantage of such a rescheduling lies in the increased planning security, since the interest rate of installment loans is fixed over the entire term, while the interest on the credit line are variable.

Compare car loans

Compare car loans

Motor vehicles are traded at prices that burden the family budget over many years. Even small differences in interest rates on a car loan over a long term make some hundreds of euros difference.

A very cheap car loan at first glance gets the buyer through the banks of vehicle manufacturers. Here are at almost all groups in the market segment of small and compact cars currently auto loans of 1.9 percent APR and less to have. That sounds pretty easy and convenient, car, car loan and insurance from a single source, but the matter has its price.

Car loan from the house bank

Car loan from the house bank

A second possibility of vehicle financing consists in a car loan through the house bank or via a direct bank on the Internet. These online banks do without individual customer service. Here, the borrower has to work out all the information about the car loan itself. The thus saved personnel costs pass on these banks to their customers via a lower APR. These car loans are currently available with interest rates of just under six percent, loan calculator on the Internet help with credit comparison.

With such a car loan, the new and used car customer acts as a cash payer at his car dealer. Since every seller is immediately wide awake, because now ringing cash in the cash register. So motivated it is not difficult for the dealer to grant one or the other percent cash rebate. For example, given the negotiating skills, discounts of 10 percent and more should be possible compared to the recommended retail price.

A car loan is used to finance the purchase of a car. It is used by many buyers and resembles a classic installment loan. However, there are a few differences in the loan rate that you should keep in mind.

What is a car loan

What is a car loan

A car loan is a loan that is used to finance the purchase of a car. Since vehicles are a relatively expensive purchase, such a loan is often used. There are different types of car loans that differ in terms of financing and the type of collateral required. The three-way financing is similar to the classic leasing model. Here, the buyer pays a certain amount of the vehicle, then pays the installments spread over several years and returns the vehicle after the financing expires, finances it or buys it. In the latter case one speaks of a so-called balloon loan. This form of financing is offered by both traders and various banks. Far more often than the three-way financing the installment loan is used. The buyer pays only the installments from the bank until the costs are paid. Since the car itself serves as security, the lending rate here is usually much cheaper. In addition to banks, various online portals also offer classic installment loans, which are tied to car sales.

Advantages of a car loan

Advantages of a car loan

A car loan has several advantages over other forms of credit. So the conditions are usually better than normal installment loans, since the security is great. Thus, even customers who have a weak credit rating, have the opportunity to complete a car loan.

Another advantage is the possibility of down payment. If you pay a certain amount directly when you buy, you can expect much lower rates. The flexibility in financing is therefore very high and offers you a lot of leeway. The disadvantage is only that you can not take advantage of discounts on installment payments. In addition, you must deposit the vehicle registration document as additional security. On top of that, a car loan is a good alternative to the classic installment loan, whereby there are big differences between the different car banks.

Autobanks: the differences

Autobanks: the differences

Depending on the Autobank, there are sometimes significant differences in the completion of a car loan. So there are institutes that require a high credit rating despite the safety of the vehicle. Especially car dealers, who have luxury vehicles on offer, rely on additional collateral and higher rates. Leasing is also an option in many cases. However, auto banks are not always the best choice despite the low interest rates. In some cases, traders offer a so-called cash payment discount, which can only be claimed with a correspondingly high credit. In many cases you can save money, provided the discount is high enough. Here it may be worthwhile to negotiate or directly to claim a car loan comparison. After all, a vehicle is a big investment that you, as a buyer, do not want to pay.

Loan for Student Finance

Regardless of the decision which course of study it should take, at which university and in which city, the question of student financing arises for many people and in many cases a loan is used. But which loans are best for student financing?

The Federal financial aid

The Federal financial aid

First of all there is of course the Federal financial aid (Federal Training Promotion Act). If you have the opportunity to finance your studies along this path, you should be aware of them in almost all cases. It is unlikely that you get better terms from a bank or a regular provider.

A prerequisite for Federal financial aid is that parents do not earn too much money, otherwise they have to finance their studies. But what if the Federal financial aid simply is not enough, because you live in a relatively expensive city, for example? Or if extra purchases have to be made that exceed the budget?
We have found additional opportunities besides the Federal financial aid, to finance the study and to increase its finances.

Our recommendations:

Our recommendations:

When it comes to rather small or medium-sized purchases, such as a boost of new literature or a laptop, especially small and mini credits can be worthwhile. These are not only quickly applied for and paid off, but in many cases also cheaper than the traditional disposition on the checking account.

For permanent or longer-term financing

When it comes to bigger credit, which should help to finance the study in the longer term, it is not always the same providers who are in favor of small loans. 

Risks of financing studies by credit

Risks of financing studies by credit

Whether you can really talk about risks is questionable, but of course students have to be aware of what it means to finance their studies with a loan – and that you just get out of college with a loan that you still have to pay off.

With virtually all providers, the repayment starts some time after the end of the payout period. It does not matter if you are still studying, unemployed or have little money. A deferral is difficult to impossible. And a reduction of the rates is possible only in a few exceptional cases. You should plan well here in any case.

Other alternatives

Other alternatives

In addition to Federal financial aid and classic loans, there are other ways to finance or facilitate the study.

Scholarships as an alternative

Another alternative for students who do not have to repay money at all is through scholarships. However, these are of course limited and bring many conditions with it. For example, there are scholarships that are aimed primarily at particularly strong students or people from difficult social backgrounds. Also, those who are socially engaged may have a chance on a scholarship.

In all cases, you should be prepared to report progress on a regular basis, otherwise you risk losing the scholarship.

Education loan

The education loan, like the Federal financial aid, is a state benefit that is usually used in addition to the Federal financial aid. However, it can also be used independently of this and can offer a low-interest alternative to other loans.

Conclusion on student financing with credit

As mentioned above, the student loan should, if possible, be regulated by the Federal financial aid. But even if this is not feasible, other options remain. One should be very sure that the study is also terminated, because the credit must be repaid in any case, after the study is completed – even if no degree has been achieved.

Personal Loan

Personal loans of lending private investors

Personal loans of lending private investors

Private loans today differentiate between the lending of relatives or acquaintances and the personal loans of lending private investors. When lending under relatives or acquaintances usually a fixed amount is awarded with a term, but without interest. The advantage of having a loan is that you know that person and are aware of their repayment intent. A repayment within the family or between acquaintances is therefore usually relatively uncomplicated.

Loan seekers without a solvent relationship still have the opportunity today to take out a personal loan. For a few years, special providers, especially on the Internet, have been promoting lending between individuals. The principle is simple, private lenders provide a certain sum, which in turn is given to borrowers. In the case of the providers Smava or Auxmoney, credit-seeking persons thus present their credit request for which the amount to be absorbed is intended. If private lenders find themselves, a loan agreement can be concluded. Prerequisite in this case is also a sufficient credit rating and no negative entry in the Private Credit.

Upon approval of the project by the providers, private investors have the opportunity to invest money in this project. The maximum limit of investment is evident in the specific provider. Loan seekers can apply for personal loans at Smava or Auxmoney between 1,000 and 20,000 euros. The terms vary between 12 and 96 months, loans are available from an interest rate of 4.25%.

It should be noted that most investors want to invest in projects that promise a high interest rate of around 15%. For these personal loan investors, the providers provided collateral in order to be secured even in the event of non-payment of monthly installments. Through a complex system of cooperation with various banks, the providers ensure their “investing” customers a high degree of security.

Even self-employed people have the opportunity to get a personal loan. The basic requirement is a minimum of 24 months self-employment, a “clean” Private Credit and the submission of various documents (tax assessment, BWA etc.).

How Long it Takes for me to Get Fast Loan

Quick credits, as their own name indicates, are characterized by the immediacy with which it is possible to get the money that is needed to get out of a certain hurry. But… what is really the period in which you can have the cash after starting to apply for an urgent loan? Are certain ads that ensure that the loan can be obtained in a matter of minutes? The answer to this last question is brief and concise: yes.

Quick loans, money in a matter of minutes

Quick loans, money in a matter of minutes

But analyzing in depth the term of time that a quick credit supposes, the approximate breakdown of the process of requesting an express loan would be the following one:

  • First phase: enter the data of the application. During the first phase of the request for a quick credit you must specify the amount of money that is needed, the time period in which you want to return the money and you have to fill in the personal data. This process does not usually take more than 10-15 minutes.
  • Second phase: receive the approval or denial of the loan. The second phase is the most important of all, since it is the one that decides whether the user is valid or not to receive the borrowed money he has requested. The period of time of this phase depends on the lender agent that is resorted to, although the most usual thing is to obtain an almost automatic response in a matter of minutes.
  • Third phase: receive the money in the account. In the event that the loan application has been approved, the next phase consists in waiting to receive the cash in the bank account. This phase depends a lot on the bank to which the user’s account corresponds. Even so, in general, the income is made in less than 24 hours after the approval of the urgent credit.

As you can see, requesting an urgent loan is something that requires a few minutes. And if that were not enough, the money is paid almost immediately once the credit approval is obtained.

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Finance Relocation 2019: Which Loans are Worthwhile for a Move?

 

Moving within a manageable radius is not a problem for most people. Family and friends help, and in a few days the new apartment is ready for occupancy. However, if a major move is imminent, perhaps for work reasons or because a matter of the heart is involved, a complete move can quickly become expensive. Much has to be delegated, and so larger amounts come together, often more than originally planned. In order for the move to be completed on schedule, the right financing is important. Credit for the move can be taken in different ways. We show you the possibilities how to finance the move.

  • All relocation costs financed with relocation credit
  • To be able to move as planned
  • Schedule additional costs in advance
  • Vote credit and budget

1. The move and everything that goes with it…

1. The move and everything that goes with it ...

What does it actually mean? When it comes to a major move, some expenses come together. First of all, a suitable apartment must be found in the new living environment. For those who move, this brings along travel costs, possibly also accommodation costs. It is, of course, ideal to have some objects “checked out” before arrival and to have the most important information about rental rates and advantages and disadvantages of the respective districts. This provides an overview and helps to talk with brokers and landlords. If an apartment is found, often fall to brokerage costs, in many cases, a deposit, which is deposited as security.

Of course, some attractive apartments are turnkey, but with cheaper properties you can expect a renovation. Those who find such a “bargain” should obtain an independent appraisal of the cost of the renovation before signing the contract in order to avoid later surprises. If then the wallpaper on the walls and the laminate laid, must still be organized the transport of their own belongings. For the costs of a moving company including packaging material and packers are usually still spending on new or additional pieces of furniture that complete the household. Also, an amount for the “little things” such as Internet, antenna and the like should be calculated.

  • Brokerage fees and security deposit
  • renovation costs
  • Moving company
  • New furniture and decorations

1.1 credit for the kitchen? Best separately!

Above all, when the move to your own home is imminent, the proud owners are also planning a new and modern kitchen. Often, kitchen equipment is not financially viable because mortgage lenders see the kitchen as moving inventory that is not part of the property security. But if you use dealer financing, you often have to realize with so-called 0% financing that the supposedly cheap purchase turns out to be expensive and burdensome for the budget over the long term. The purchase of a kitchen in the context of the move can be financed separately from the removal costs either through an installment loan or a residential loan. Both options allow the tenant or builders more flexibility in the design of installments and the term.

Moving funding with these possibilities

  • installment loan
  • line of credit
  • Variable credit
  • Company loans

2. Financing the move with a installment loan

2. Financing the move with a installment loan

Optimal for financing the move is in most cases an installment loan. Many retail banks and direct banks provide consumer loans, the amounts of which can range between 500 and 100,000 euros. The duration and the amount of the monthly installments are flexibly adjustable. In many cases, the amount of installments can be reduced or the term can be shortened by making a down payment. Installment loans are available with terms of 12 to 96 months, depending on the provider. Special payments should be possible to pay off the loan faster, ideally, the early repayment should be free of charge. Since interest rates on installment loans are quite different, users should always consult a loan comparison online. Particularly important is the APR, because it defines the “price” of the loan, ie the costs incurred in addition to the amount taken up.

2.1 Installment loans with final installment

In addition to the classic installment loans, financing with a higher final installment is also offered. In the so-called balloon loans fall through this construction, the monthly rates then cheaper. The term is limited to a maximum of 60 months. Such a balloon loan can be very useful, for example, if the borrower already knows that he will have a larger amount of money available in the foreseeable future. For example, when moving, the final installment of the balloon loan may be serviced if the old apartment is sold or, more likely, the deposit is returned.

2.2 Benefits of relocation financing with installment credit

Especially when it comes to a move for professional reasons, over longer distances, or the establishment of a first common home, there are many wishes and preferences. If you change your place of residence for work, you have to settle in quickly. This means that even the new home must be quickly finished and comfortable, so that the career jump does not become a stalemate. Even with young couples connect to the new home claims. With a installment loan, your own wishes and practical needs for the start in the new apartment can often be financed with very good returns. With the classic installment loan, the customer can also make the amount of the installments and the term very flexible.

2.3 Disadvantages of relocation financing on installments

Of course, an installment loan has its price, of course. The bank calculates the APR to earn the financing solution. The fact that you pay more for a installment loan than the sum taken is obvious. In order to keep the costs as low as possible, it is advisable to keep the loan itself as well as the running time as low as possible. Another disadvantage, especially with high loan amounts with a long maturity is the fact that the budget is additionally burdened for a while. Therefore, it should be considered before the loan application, whether and how the payment of installments is secured.

3. Finance the move with a credit line

3. Finance the move with a credit line

Those who do not calculate their removal costs in advance and then come into financial default, can easily be tempted to overdraw the credit line of the current account. In principle, it is possible to move by dispo, but rarely a good idea.

3.1 Advantage of the MRP loan

A credit line can be claimed immediately without application or processing fee. If it really is manageable amounts that are needed only very short term, this solution may be cheaper than a installment loan. In addition, the MRP framework has already been approved, so a credit check is not required.

3.2 Disadvantage of the credit line

The terms and costs of using the credit line are less manageable for many customers. Although the credit line is flexible, even the “overdrawn” amounts usually do not have to be closed very quickly, but the discretionary interest is considerable, sometimes even double digits, and accumulate every month. In any case, they are higher than the effective annual interest rates on many attractive installment loans, so you should also calculate his move financially really wise and not give in to the temptation to overdraw the account at random. With a drastically overdone checking account, it may take months for the account to be balanced. The restrictions during this time can burden the household considerably.

4. Variable loan for the move

4. Variable loan for the move

The variable loan is a less common financing solution, but is excellently suited as a loan for the move. The credit, also known as the “call-off loan”, is a credit limit of between € 10,000 and € 25,000 granted by the Bank. The special thing here is that this loan can be used again at any time, once approved. The customer does not have to use this sum – but he can. Especially if the costs are not fully calculable, but you definitely want a credit line, variable credit is the solution. The variable loan is repaid via fixed monthly minimum payments, and special payments are also possible. Unlike the installment loan, however, the interest rate here is variable and is calculated daily according to the current interest rate.

5. Finance relocation with employer loans

5. Finance relocation with employer loans

You do not always have to go to the bank to get a loan for the move. In the case of work-related moves, it can happen that the employer helps with a loan. The so-called employer loan is even interest-free for large companies, or often has only a low interest rate. The repayment is charged here with the salary payments and individually discussed. An employer loan is a solution that offers itself, if you have no reservations regarding the new job, so that you can tie up financially for a while.

6. Loan for the move: Keep the term as short as possible

6. Loan for the move: Keep the term as short as possible

When it comes to financing the move, you should resort to loans that are not too long in maturity. The burden over a long time is not desirable, as long as you change your career, for example. In this case, a new move may be in the house, while the previous loan is still not cleared. Against the background of a rapidly changing world of work, a little caution is needed here.

7. Loan for relocation: use provider comparison

7. Loan for relocation: use provider comparison

In order to be able to calculate the credit well, it is advisable to compare the financing options of the individual banks. Who knows what sum is needed, can enter the sum and the desired duration in a credit comparison portal and then receives a list of the most attractive offers. Especially with installment loans, the differences in the APR are sometimes quite high. Also, the price differences between branch banks and direct banks fall in the credit in weight. Although the branch bank allows to use a personal consultation. Virtually all financial products are less favorable than a direct bank, which passes on its lower operating costs to its customers. A loan calculator provides clarity as to which provider actually has the best conditions for financing the planned move. In addition to the loan amount and the interest rate, it should be ensured that special repayments and premature repayments are possible free of charge.

8. Requirements for the removal loan

8. Requirements for the removal loan

Apart from the credit line or the financing by the employer, other loan models require a request and a grant from the bank. The borrower must meet certain requirements in order to succeed with his application. The easiest option is to apply for a direct bank loan. The application for installment loans, for example, is possible online and completed in just a few steps. The borrower must be of legal age and have a residence in Germany. A certain credit rating, ie a fixed monthly income, is usually a prerequisite for the approval of the loan. As a rule, the bank checks the creditworthiness without obligation and provisionally during the application process and later makes an official inquiry to the Private credit. It is not easy to apply for a loan for people who have no fixed income, such as housewives, students, apprentices or trainees Freelancer. Banks often offer their own loan solutions for students who can not yet provide their own income, while freelancers may sometimes request additional documents.

The loan application must first be completed in full and correctly. Mostly it is printed out, has to be signed and uploaded or sent by post to the bank. Also part of the application is the legitimacy via the PostIdent or VideoIdent procedure. For this purpose, the borrower must have a valid identification document ready, even a proof of residence, for example, by a current utility bill is required by most banks. If additional documentation is required, the applicant will be notified. For freelancers usually a tax assessment from the previous year is desired. Subsequently, the bank checks the application, the approval depends inter alia on the results of the Private credit query. If there is no negative Private creditscore, a loan for the move is usually granted swiftly and paid out within a few working days.

9. Conclusion Finance relocation – with the right credit well feasible

9. Conclusion Finance relocation - with the right credit well feasible

A move brings a changeover, relatively much work and also costs. In order for everything to go according to plan and the new apartment is quickly made comfortable, especially the finances must be right. Therefore, relocation workers should calculate all factors of financing and then decide which loan is necessary for the move. So realtors, moving company, renovation and furniture for the new home can actually be paid.

Choosing the right loan provider is essential to ensure a smooth process. In no case should the checking account be unplanned for a move. Usually a installment loan is a cheaper solution and comes with lower interest rates. Alternatively, the use of a variable credit line is conceivable, if one has the finances under control, but wants to be prepared for unforeseen expenses. Anyone who is lucky receives a loan from the employer, which serves as a cash injection when moving. In any case, a loan comparison and the use of a loan calculator is a good idea, so that the move into the new home does not come to a cost trap.

Consumer Credit – a Versatile Consumer Loan

People in Germany now finance numerous consumer spending via installment credit, which is often referred to as consumer credit. The uses range from the purchase of a new car to the purchase of a smartphone, so that the loan amounts often move from a few hundred to more than 20,000 euros. We would like to inform you in the following guide to the consumer credit and its properties.

Key features of consumer credit at a glance

Key features of consumer credit at a glance

  • Good planning of costs (credit installments)
  • Free use of the loan
  • Finance without equity / reserves
  • unscheduled
  • Free installment breaks

The properties listed above today have almost every consumer credit, which can be characterized for example by the fact that the payable loan installments are very easy to calculate. This is due to the fact that the loan rate does not change throughout the term, since both repayment and interest remain identical in terms of amount. As a rule, there is a free use of the loan amount, so that the borrower can decide completely independently of the bank, for which purchase he would like to use the consumer credit.

In contrast to the mortgage loan, consumer loans are usually granted without the borrower having to contribute equity to the financing. Special repayments are almost always possible these days and usually even free for the borrower. Banks are also increasingly offering installment pauses for free if the borrower is temporarily unable to pay the agreed loan installment.

The essential conditions for consumer credit

The essential conditions for consumer credit

As a rule, the consumer loan is given in the form of an installment loan. Among other things, this means that the borrower can usually choose between maturities that range from 6 to 72 months. This usually results in loan installments ranging between 25 and 300 euros per month. With the loan sums, such consumer loans are also very flexible, because depending on the loan option, these move between 500 and 50,000 euros. On interest rates, the loan seeker should know that there are two groups of banks. The first group arranges the loan amount to be paid exclusively according to the term and the loan amount. Alternatively, there are credit institutions that provide the same interest rate to all customers regardless of their term and loan amount. The other group of banks estimates so-called credit-based interest rates. In this case, the APR actually payable by the customer depends on how the bank rates its creditworthiness.

In the overview, it is the following conditions that are typical for an installment loan and thus often for a consumer loan:

  • Loan amount between 500 and 50,000 euros
  • Terms between 6 and 72 months
  • Interest rate either credit-dependent or credit-independent
  • Average effective interest rates between 2.99 and 8.99 percent
  • Special repayments usually possible at any time

In what form is the consumer credit offered?

In what form is the consumer credit offered?

By means of consumer credit it is possible to finance private purchases. Not all banks offer this type of loan under the title of consumer credit or consumer loan, but alternatively use terms such as personal, consumer or general purpose. Despite these different names, the core is always consumer credit, as private individuals as borrowers generally do not have any business investments, so almost all purchases in the consumer sector are financed through consumer credit.

This is often one of the following expenses to be financed:

  • buying a car
  • Buying new furniture
  • Acquisitions in the field of consumer electronics
  • Purchase of new household appliances
  • renovations
  • holiday trip
  • removal expenses

Since consumer credit is an absolute standard loan, the credit decision usually also takes place by means of a standardized procedure. This means that only rarely employees deal with the loan application on an individual basis, unless the loan is taken up in a business office. Otherwise, there are almost always automatic credit scoring systems that are used, for example, by the direct banks or also by those branch banks that provide consumer loans via their own website. However, there are not insignificant differences in consumer credit in terms of the conditions under which the loan is requested. We would like to discuss these requirements in the following section.

Under what conditions are consumer loans approved?

Under what conditions are consumer loans approved?

The basic requirement for the award of each consumer credit is that the loan seeker is of legal age. As a rule, he has automatically achieved full capacity for business unless he is under guardianship or mentally handicapped. In all other cases, the age of majority together with automatic unrestricted business ability leads to the fact that the loan seeker is at the same time creditworthy. In the second step, the bank must then check the creditworthiness (creditworthiness) of the applicant, which is usually done on the one hand by querying the Private Credit data and on the other hand by proof of a regulated income.

In addition to creditworthiness and creditworthiness, there are sometimes other requirements that the customer must meet in order to obtain the consumer credit, namely:

  • Residence in Germany
  • No existing loan installments
  • Positive balance in the income and expenditure account
  • Income of at least € 1,200 a month
  • Permanent employment contract outside the probationary period
  • Co-applicant or security must be provided

However, some consumer loans are also given on condition that the borrower has a negative entry in the Private Credit. Such consumer loans are then special loans, which are usually referred to as credit without Private Credit. However, you will not find them at ordinary banks, but they are usually granted through credit intermediaries and, ultimately, banks that are predominantly located in Switzerland or Liechtenstein.

For consumer credit, do not pay attention exclusively to interest

For consumer credit, do not pay attention exclusively to interest

Since today almost every financial institution offers a consumer credit in the form of an installment loan or a disposition credit, you should make a comprehensive credit comparison before selecting the loan. This is very easy, especially for consumer loans, because they are consumer loans that are subject to stricter legal requirements. This includes, for example, that the banks are obliged to communicate the effective interest rate and its composition on the basis of the price information ordinance. If the effective interest rate is known, different offers can be easily compared.

There is a kind of trap, however, whenever banks rate a credit-based interest rate. In this case, you can not of course use the loan calculator to calculate and compare the effective interest rate. Because such online calculators offer no way to capture your credit rating in the form that could be determined on this basis, a fixed effective interest. In that case, you will actually need to contact the relevant credit institution individually and make a loan application to know what interest rate you would pay based on your credit rating.

Basically, it is so important to deal with the effective interest rate and to compare the offers in this regard. Nevertheless, you should not forget at this point that there are of course other important conditions and contract details far away from the interest rate for consumer credit. This includes, for example, a possibly calculated account maintenance fee or other costs that may be incurred in addition to the interest. For example, some banks only grant consumer credit if you take out a residual debt insurance policy that protects you from the financial consequences of long-term unemployment, illness or disability. However, such residual debt insurance is not cost-effective, but with a loan amount of, for example, 10,000 euros, it may well happen that a one-off fee for the insurance in the amount of 300 or 400 euros. In addition, you should also check with the Consumer Loan, if free special repayments are possible throughout the term, if you later intend to make an early redemption or at least partial repayment of the loan.

Determination of disposable income as a basis

Determination of disposable income as a basis

Before you make a credit comparison, you should first determine your free disposable income. This is the basis for how much the credit can be that you later agree with the bank on consumer credit. Without knowing what maximum loan rate you can afford, the calculation of consumer credit makes little sense. After all, it is usually calculated on the basis of the desired loan amount and the duration, which may be the monthly rate. The income and expenditure bill is easy to set up because you have to compare the monthly income, usually your salary, to the regular expenses such as rent, insurance premiums and cost of living. If a positive balance emerges then, there is usually nothing to prevent the taking out of a consumer loan. It becomes critical when there is no disposable income, so your spending is higher than the income. In this case, you either have to reduce expenses or make other arrangements with the bank, which still makes lending possible.