When can I take out a loan?

Creditworthiness is granted when a consumer is legally authorized to take out a loan. But “What monthly loan interest can I afford?

To what extent can I borrow? Isn’t the key question?

To what extent can I borrow? Isn

The topic “How much can I borrow” cannot be unequivocally answered with a specific value. Instead, it has to be clarified on a case-by-case basis and depends on the term and the interest rates. In the credit-dependent lending business, it is conceivable that lenders who do not only consider the Credit Bureau value can give married couples a higher credit rating than singles.

It is not the absolute amount of the loan that determines the maximum amount of credit that can be granted to a particular applicant. What is more important is the monthly cost of the bond business. Therefore, the answer to the following question before taking out a loan is not “How much can I take out a loan? “But” What monthly loan interest can I pay off?

“These questions are checked by the house bank when lending. For this purpose, the current income is compared with the expenses incurred. If you have an exceptionally low effort, you can ask some banks to take the current situation into account. The fact that the solvency of the monthly installments and not directly the loan amount is the upper limit of debt financing allows consumers to take advantage of higher loans by opting for a longer term.

As a result, the monthly fees decrease and an improved budget result is achieved even with larger sums. Even if the sum of the monthly installments and not the absolute loan amount is decisive for the household account, the question arises: “How much can I take out a loan? On the one hand, the monthly rate cannot be arbitrarily reduced by increasing the term, since many credit institutions offer a maximum term of seven years and are completely unusual for consumer loans.

Few credit institutions

Few credit institutions

In addition, almost all credit institutions have defined minimum and maximum amounts for use. There is a wide range of absolutely maximum loan amounts. For some financial institutions it is already $ 30,000, while a few credit institutions also provide $ 100,000. This limit applies to an unsecured consumer loan, but of course larger sums are also possible in the course of mortgage lending.

A further restriction with regard to the loan amount is that unrestricted loans are usually only granted in increments of 1,000 dollars. In the area of ​​real estate financing, the current lease helps answer the question “How much can I borrow”, but is not the only criteria.

Immediate credit for bad Credit Bureau

Consumers with negative Credit Bureau information often come up with the legitimate question of whether it would be possible to obtain an immediate loan from German banks if Credit Bureau had bad information. At this point it can be stated that there is no statement that has general validity. Depending on the facts, the question must be considered very individually and always depends on the personal circumstances of the loan seeker.

In theory, it is always possible to get an instant loan with bad Credit Bureau, but not for everyone. In addition, it always depends on the specific negative feature that is in the Credit Bureau. The Credit Bureau of a person is always referred to as “bad” or negative, among other things, when a loan has been canceled or a payment order has been issued. A Credit Bureau is particularly bad if the affidavit has been given or a private bankruptcy procedure is currently underway. In such cases, it is almost impossible to get a loan from German banks.

An instant loan with bad Credit Bureau is difficult to get

An instant loan with bad Credit Bureau is difficult to get

A generally binding and fairly correct statement boils down to the fact that there is in principle no immediate credit for bad Credit Bureau. Of course, exceptions confirm the rule. This is no different here, as we want to illustrate using the example. Assume the case that the loan seeker has a completed dunning notice in the Credit Bureau. If he then requests a car loan from a car bank and wants to make a high down payment, the car bank will give him a loan with the completed dunning notice. When the same customer applies for a cash loan of 50,000 dollars from a direct bank, the situation is somewhat different. If the bank does not immediately reject the application, it will at least want to have a solvent guarantee.

In a second exemplary case, the customer has just given the affidavit or a credit cancellation for a large amount is noted in his Credit Bureau information. The bank from which this customer applies for a loan will also not approve a small loan amount and will not offer any alternatives to the loan seeker. If it is only a small loan, this loan seeker has the option to request a loan without Credit Bureau through a credit intermediary. However, he will only be successful there if he is in a permanent position and can prove a regular income in attachable size.

In summary, it can be summarized that the chances of an immediate loan with bad Credit Bureau information for employees in permanent employment are relatively good. Unemployed people or recipients of social benefits with poor Credit Bureau have virtually no way of getting a loan from the bank. The foreign banks do not grant loans to the unemployed and the German banks also reject credit requests from unemployed people with poor Credit Bureau.

Not every bad Credit Bureau is equally bad

Not every bad Credit Bureau is equally bad

In order to understand why there are banks that rigorously reject credit requests and in other cases grant credit applicants immediate credit if they have bad credit, one has to know that the negative characteristics are not all equally serious. The completed dunning notice or a completed credit cancellation as well as other negative information do not automatically lead to the fact that credit inquiries are rejected. But there are also so-called hard negative features such as sworn state insurance or personal bankruptcy, which actually always lead to the fact that loan requests are rejected by the banks.

With these features, loan seekers also have no chance abroad, because the foreign bank has access to the debtor register at the relevant local court. As soon as the banks consider the credit default risk to be too high, there is no immediate credit for bad Credit Bureau, and the banks only grant credit on a regular basis if they believe that the borrowed money will be repaid by the borrower in accordance with the contract. If it is foreseeable that the customer represents a high risk, no loan will be granted.

Alternatively, apply for a loan without Credit Bureau

Alternatively, apply for a loan without Credit Bureau

Credit Bureau-free loans are granted by foreign banks. For a loan without Credit Bureau information, consumers should best contact a credit intermediary. The Credit Bureau information does not matter for the foreign bank. Nevertheless, customers must be creditworthy and able to prove their creditworthiness. The creditworthiness has to be proven by a permanent employment with attachable income. This means that not everyone who applies for an immediate loan with bad Credit Bureau has a good chance of success.

Instant credit in 24 hours

The Internet gives people around the world a lot more options. You can not only shop online and do your banking online. Loans can also be applied for directly online today.

The instant loan in 24 hours is not a promotional promise, but a reality – at least if you assume that the promise will be made so quickly. If you know the procedure, it goes without saying that it is not possible to make an instant loan available within 24 hours.

Why a loan payment in 24 hours is not possible

Why a loan payment in 24 hours is not possible

Installment loans are now standardized banking products that are processed automatically by banks according to a certain procedure. If the credit applicants are creditworthy, the system today issues an approval within a few minutes of receiving an online request from the bank. However, this commitment is always a preliminary commitment, which is subject to the examination of the incoming documents.

However, it will always take more than a day for contract documents signed by the customer and his proof of income to be available in the bank, from which an instant loan was requested in 24 hours. This period of time can hardly be shortened simply because of the mail delivery time. In the following we have shown the process from the request to the successful payment of a loan for a better understanding. If you know the process, you have no false expectations when applying for a loan.

The path from approval to payment of a loan

The path from approval to payment of a loan

If an instant loan was approved, the bank then sends the contract documents to the borrower by post. Alternatively, he can also print out the documents himself, which of course saves some time. A copy of the documents required by the bank must then be attached to the contract documents. Usually these are the last three earnings slips and bank statements from the past three months.

The information on the economic situation can be checked on the basis of this evidence. With these documents, the borrower goes to a local Post branch to authenticate himself using the Post Iden Coupon as part of the Post Ident procedure. This is a legislative requirement that must be met if customers do not appear in person in the bank to identify themselves.

The documents then go from the post office to the bank and are checked there. If everything is OK, the loan will be paid out. The process described ideally takes three days, but seven days are also not uncommon. An instant loan in 24 hours with simultaneous availability of the loan amount is therefore not possible.

The instant loan in retail

The instant loan in retail

The process is significantly faster if an instant loan is requested in 24 hours on site in retail in connection with the purchase of goods. In many large specialty stores such as furniture stores or electronics stores, instant credit is available on site. Customers who wish to do so, have the opportunity to finance the purchase of a loan in connection with the purchase of goods and, if the goods are available accordingly, can take them with them immediately.

This is often the case when a car is financed through the car dealer. In retail, one can definitely speak of instant credit in 24 hours, if it is disregarded that cash is not paid out.

What consumers have to consider

What consumers have to consider

In principle, loans are now available more quickly and can be taken out without complications. Nevertheless, consumers should keep in mind that spontaneous purchase decisions, where the goods are paid for with a loan, mean that afterwards a loan has to be used for a longer period, which reduces the freely disposable income. If you have several loans in parallel, you always run the risk of getting into debt.

We advise not to make spontaneous purchase decisions in which the goods are financed by means of credit, but to sleep at least one night over them.