Credit as a self-employed – free time – news

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Hardly anyone goes their whole life without taking out a loan. Loans help with large purchases, such as buying a car or real estate, with financial bottlenecks or with financing your own educational projects. All of this also applies to self-employed persons. It is usually more difficult for this group of people to get a loan. However, if you understand the reasons for this and know how best to proceed, you have a good chance of getting a loan approved.

Understand the barriers to self-employment

If you apply for a loan as a self-employed person, you will often get a rejection – at least if you apply to your house bank. In general, the chances of getting a loan as a self-employed person are lower, for several reasons. For example, the self-employed often have a fluctuating and uncertain income, with the risk that one becomes insolvent. Lenders therefore take a higher risk when they give the self-employed a loan. These have better chances if they can offer more security.

For example, assets such as a car or real estate are ideal. It is also beneficial to have a positive Show Schufa information and to be able to prove a stable and sufficiently high income in the past. Information on the operational situation can also help to increase credit opportunities. If in doubt, a guarantee or a second borrower can be helpful.

Find the right loan offer

When looking for the right loan offer, there are many different factors that are important in the selection. This includes not only the interest rate, but also the amount of the monthly installments or the possibility of using a break in installments. Obtaining offers from different banks is time-consuming. That is why the self-employed benefit from credit intermediaries like Auxmoney. The self-employed also have a chance to get a loan there.

Here you can Credit for the self-employed received despite Schufa and receives fair conditions. Because a Schufa entry is not the only criterion that is included in the examination of the loan request. It is also positive that the loan processing is processed entirely online and does not require any unnecessary paperwork. This also enables the application to be processed quickly and the desired loan amount to be paid out quickly if a contract is concluded.

plan to repay the loan

A smooth repayment of the loan is important in order to save yourself unnecessary hassles and additional costs that are caused by applicable reminder fees can arise. The first step in planning is to look at the repayment schedule. This gives an overview of how the loan develops in the course of repayment. This shows which repayment amounts are due in the future and how the interest affects them. Such an overview is important in order to know exactly when you have to repay which amounts.

During the repayment, it is important to ensure that you always have enough money available to pay the installments. You have to keep this aspect in mind if you have unexpected expenses for household appliances, for example. It is important that the account has sufficient funds on the reference date. In addition, you should know what your options are when the financial situation changed. Examples of this are a pause in installments or a repayment change.