The corona pandemic is not the only cause of financial bottleneck for many people. Anyone who needs short-term money and is thinking about a loan should avoid two things in particular that can cause enormous loan costs: high interest rates and credit insurance. The experts know what other things you should watch out for.
Check Schufa entry
Before applying for a loan, you should check your own Schufa entry and plan some time for it. The credit agency provides data copies that give an overview of the personal data. Once a year you can download it free of charge. If it contains incorrect or old entries, Schufa is obliged to correct them. This improves the creditworthiness and promises lower interest rates.
Optimize contracts
In order to keep the loan term as short as possible, correspondingly high monthly installments must be paid. And in order to be able to pay the highest possible rates, the experts advise checking all existing contracts: Can the monthly costs for electricity, gas, mobile phone and insurance be reduced? A discussion with the relevant providers about optimization options can help here.
Installment loan
In contrast to construction or car loans, the intended use of installment loans can be freely selected. With installment loans, as with all other loans, you should compare the prices of as many credit institutions as possible. There are many forms that often differ greatly in terms of interest rate and term. However, only the effective annual interest rate, which the credit institutions are legally obliged to disclose, is meaningful. What is important here: a realistic assessment of your own income. After deducting all running costs, a maximum of between 30 and 40 percent of the remaining money should be used for loan repayment.
Cost trap residual debt insurance
A residual debt insurance is not absolutely necessary. If the lender gives the impression that there is only a deal with residual debt insurance, he is dubious. The residual debt insurance theoretically steps in if the borrower is no longer able to pay the installments. However, the experts warn: In many cases, this insurance does not work at all and thus makes the loan unnecessarily expensive. In addition, this item should always be listed separately in the loan offer and not included in the monthly installments. This makes it easier to compare loan offers.
Compare loans
Even if the financial situation is precarious – the experts definitely recommend comparing various loan offers. Via the common portals such as B. Verivox, Check24, Finanzcheck or Smava you get a good impression of what is possible under which conditions, before you may ask your house bank for an offer.
According to the experts, the following points should be compared: What is the APR? What is the borrowing rate that the bank charges on the loan? How long is the term until the entire loan amount including all interest is repaid? What is the total cost – that is, the cost of the net loan amount and all interest? Is there an option for temporary special repayments and early loan repayments? If so, under what conditions?
Lending factors
Who gets a loan and under what conditions, especially in Corona times, essentially depends on the general financial and professional situation. It is more difficult for the self-employed to get a cheap loan than for an employee who may be temporarily on short-time work due to the corona pandemic. And the higher the income, the higher the credit rating of money houses.
Adeba-Forum
We have been helping mothers since 1997, please tell us what you think. You can write now and register later. If you already have a user account, please log into write with your account.
—
