Would you like to apply for a loan, but are still unsure what is important? Should your application be decided quickly and should the money be available in the checking account within 48 hours?
You can find all the important information in our small guide to applying for a loan. We explain how you can find the lowest interest rate offer in just three mouse clicks. You will also see at a glance whether the desired loan offer can be quickly decided and paid off.
Apply for a loan – low interest loan
Applying for a loan is very easy; if advertising were to be believed, every loan advertised is low-interest. If you don’t want to rely on advertising, but want to be sure to apply for a low-interest loan, go online. Free credit comparison calculators take on the task of finding a loan. Three simple mouse clicks are enough for the loan calculator to suggest suitable loan offers.
The comparison calculator lists eligible loan offers sorted by interest rates. Attention should be paid to the effective annual interest rate. This interest rate includes all costs incurred by the borrower by taking advantage of the loan offer. The list is mostly led by interest rate offers that depend on creditworthiness. Credit-dependent means that the personally proven credit rating for lending decides on the approved interest rate.
The advantages of applying for such a loan are particularly good for people with very good credit ratings. – For example, senior officials. The representative example shows at what interest rate “average citizen” receives the loan. Compared to the interest rate that 66 percent of all applicants receive, interest offers that are independent of creditworthiness are often cheaper. With the offers, which are often incorrectly referred to as fixed-rate loans, each borrower pays the same interest rate.
Basically, for every loan request, only an applicant who has sufficient creditworthiness to grant a loan can hope for a loan approval.
Credit rating for lending – what is the score?
Any lending carries the risk that a borrower will not be able to repay the loan or will not want to repay it. The task of the score is to measure the risk of lending machine-readable as precisely as possible. A score is a numerical or numerical value that precisely defines the credit default risk. All knowledge about the borrower is included in the scoring value, the future forecast rounds off information from comparison groups.
Fast lending is based on an applicant reaching or exceeding the preset score. In this case, the system automatically approves the loan. – Provided that the supporting documents to be submitted prove that there was no “flickering” with regard to income and expenditure. In order for the final automatic credit check to be carried out without delay, however, the application must be legally binding.
Apply for a low income loan – identify problems
The state protects every citizen’s income from seizure up to a predefined amount. The respective garnishment table shows how high this sum is in the individual case. Regular fast installment credit can be expected with a good credit rating if the personal net income clearly exceeds the garnishment-free limit. At the same time, of course, the household account must demonstrate a sufficient surplus for the ability to pay in installments.
In the event of repayment difficulties, attachability of work income is the safest pledge so that the lender does not lose any money. As a result, problems with lending can arise not only if a negative credit entry tarnishes the creditworthiness forecast. Even if the income is too low, not every credit institution considers lending secure.
Especially when a very low interest rate is tempting to apply for credit, the bar for proof is usually quite high. A lower threshold can be assumed if a risk premium is included in the effective interest rate. In case of doubt, it is advisable to make a non-binding advance credit request. Without worsening credit rating, the loan provider checks the loan request and communicates the expected result of a legally binding credit check.
Apply for a special loan – differences and offers
Applying for and receiving credit is not only possible if you have a good credit rating, as evidenced by credit rating or the score. Every automatic credit rating system has minor weaknesses. It is particularly problematic that not every positive change is automatically recognized by the system. Refuting negative creditworthiness with supporting documents is the chance that credit providers offer for special loans with the individual case check.
However, applying for a special loan is only successful if the result of the individual case examination clearly shows the creditworthiness of the loan. – This applies no matter what the loan advertising promises or seems to promise through half-rates.
Applying for credit from private lenders fulfills a special position in the reputable credit market. Private investors do not have to base their secure lending on legal regulations like banks do.
Applying for a loan is as easy as with a bank. – Only private donors are allowed to take a higher credit risk than banks, so their loan approval is easier to obtain.