Payday loan consolidation saves you money!

Furniture, cars, vacations, relocation – there are many reasons that cause consumers to borrow. German households serve on average between three and five smaller loans. The permanent overdraft, too high real estate lending rates or the combination of several small loans, are good reasons to deal with a refinancing. Due to the rescheduling, the company’s own financial position is not only clearer, but it can also save on credit costs.

the essentials in brief

  • A loan reminder saves in many cases interest costs but is often not suitable for debts less than 1,000 euros.
  • With the rescheduling loan, an existing loan or several existing loan agreements can be completely replaced, so that instead of many small single installments, only a large monthly installment has to be paid.
  • It is always necessary to determine the cost savings taking into account all incurred cost items such as prepayment penalty, other penalties, processing fees, and other costs.

What is a payday loan consolidation?

What is a debt restructuring?

Payday loan consolidation is the replacement of existing loans by taking out a new loan. You may solve The Problem with Payday Loans with payday loan consolidation. With the loan amount paid out, the existing loans are completely or partially replaced.

By rethinking a number of single small loans with a high effective interest rate into a large loan with a lower effective interest rate, costs can be saved. In addition, the overview of one’s own financial situation increases because the number of installments to be paid is reduced.

Debt credit: when is the change worthwhile?

Debt rescheduling always pays off when the cost of raising and continuing a new loan is lower than the cost of current loans or current loans. In this respect, it applies to borrowers to face the following cost items:

  • Old loan: current interest rate, rescheduling costs (prepayment penalty), total costs until the repayment of the loan
  • New loan: new interest rate and interest savings, possible processing fees, total costs until the repayment of the loan

The rescheduling is worthwhile if the interest savings until the end of the term are greater than the cost of early replacement of the old loan.

Special problem: Multiple loans cause multiple costs

If consumers are in debt due to multiple loans from different lenders, they will be required to pay multiple processing fees and ancillary costs for each loan. In addition, there are interest costs and repayments. If the loans are meaningfully summarized by merging them into a debt rescheduling loan, the refinancing can save interest and other borrowing costs.

Example of rescheduling

Example of rescheduling

A borrower must serve three loans each month for different purposes:

  1. Modernization loan for his property at the house bank (remaining debt € 20,000, effective interest rate 2.5 percent)
  2. Financing of the kitchen (residual debt € 16,000, effective interest rate of 6 percent)
  3. Financing of the living room furniture (remaining debt 4.000 Euro, effective interest 5.5 percent)

In total, his debts amount to 40,000 euros. As part of a loan debt restructuring, the debtor manages to obtain a loan at an interest rate of 2.8 percent. He decides to replace the financing for the kitchen and the furniture for a total of 20,000 euros with the rescheduling loan. He keeps the modernization loan running.

Instead of the three individual loans, only two loans remain after the rescheduling, which is to be serviced monthly. In addition to the savings that result from the lower interest rate, the debtor reduces the cost of credit account management and other ancillary costs.

When is the rescheduling not worthwhile?

The rescheduling of a loan is usually worthwhile in any case if the remaining debt is less than 1,000 euros and the term is less than twelve months. In such a case it will be very difficult to find a cheaper alternative. This is because banks set new minimum installment terms and minimum amounts for new installment loan installments.

In such a case, consumers can check the following options:

  • Are there enough savings to settle the remaining debt completely? Then it pays to determine the associated costs. If the bank does not require a prepayment penalty, the immediate repayment usually pays off, because the interest credit on the savings account is lower than the number of interest costs for the lender.
  • If the term of the existing loan is less than twelve months, the rescheduling of a loan with a longer term could make sense. This can be seen by the prospect of seeking multiple bids and comparing the cost of borrowing.

Special case rescheduling and mortgage lending

Consumers with a mortgage loan should, in times of low-interest rates, check whether debt rescheduling is eligible. A look back at the past shows that over the past 20 years, the average interest rate on ten-year loans has been around 4.7 percent. At the end of 2018, the effective interest rate for a construction loan is between 1.5 percent and 1.8 percent. For building borrowers, it means they can save a lot of money in the long term.

In general, every borrower should know that § 489 BGB grants a special right of termination for real estate financing. It is analogous in this paragraph that borrowers may fully or partially terminate ten years of borrowing on a fixed-rate real estate loan without being charged a prepayment penalty or other service charge. The financing bank has an obligation to release its clients from the contract within six months. This way, consumers with long-term loans can exit the contract prematurely and reschedule their debt.

Borrower with a real estate contract with a closing date older than 4.5 years

Borrowers who have signed their contract for about five years should look into the follow-up financing as soon as possible, keeping an eye on interest rates. It may well be worth taking on a forward loan today.

There are credit providers who grant a lead time of 60 months (= 5 years), some even offer a lead time of 66 months. In practice, this means that borrowers with a contract that is only four and a half years old can also check whether a debt rescheduling is worthwhile and therefore eligible.

Which rescheduling fits best?

There are various forms of debt restructuring. Often, these are the discretionary credit, the installment loan, and the real estate loan affected. In general, there are several reasons why consumers choose to reschedule. It makes sense to reschedule if one of the following situations applies:

  • The disposition credit on the checking account is used frequently and on a large scale.
  • The consumer has to serve several smaller loans.
  • The real estate loan expires or follow-up financing is within reach.
  • The construction loan should be rescheduled because of high-interest rates.

The following table provides an overview of the different forms of debt restructuring with their advantages and disadvantages.

rescheduling form advantages disadvantage
Debt rescheduling in Installment Loan, Loan Loan or Loan Loan
  • considerable interest cost savings
  • for smaller amounts no extensive credit check is necessary
  • an uncomplicated and transparent process
  • Plannable regular installment
Financially inexperienced consumers can tentieren, despite rescheduling the current account to coat. There is a danger of getting into the debt trap permanently. The appropriate countermeasure is to terminate the credit line with the bank
Merging multiple loans into one loan
  • interest savings
  • Saving multiple invoiced credit costs
  • improved overview of payment obligations
Rescheduling of expensive real estate financing
  • significant interest savings
  • Forward loans can be used to secure favorable interest rates for follow-up financing for up to five years in advance.
Possibly prepayment penalty is required

This is how a debt restructuring works

This is how a debt restructuring works

If borrowers decide to reschedule, the following steps are a good idea:

  1. Check and record the status quo
    Debtors summarize the key data of their loans in an overview. Important criteria are the annual percentage rate of interest, the remaining maturity, the amount of the monthly repayment installment and the amount of the residual debt. Important: If you do not have this data, contact the responsible lending bank.
  2. Determine the prepayment penalty and other costs for early termination
    Not every loan is subject to prepayment penalties. References to find borrowers in the loan agreement. In the case of a loan up to a maximum of EUR 75,000, which was closed before the cut-off date of 11 June 2010 (the entry into force of the European Consumer Credit Directive), a three-month notice period applies. In addition, the early termination of the loan may cost a maximum of one percent of the outstanding balance. If something else is in the contract, that is not legal and therefore voidable.
  3. Calculating the savings potential
    The available data can now be used to calculate the potential savings by comparing the total cost of the old and new potential credits. If it is not possible to calculate the savings alone, it is advisable to ask an expert for advice.
  4. Rescheduling on the way
    If the debt restructuring pays off, the new contract can be concluded. Important: The contract period of the new contract must fit the contract period of the old contract. For example, borrowers can use the loan repayment loan to replace the old contract (s) without temporarily experiencing financial difficulties. The date for the first installment of the new loan should be after payment of the last installment of the old contract or contracts so that there is no double charge.

Tip: With a good deal on a debt repayment loan, consumers can go to their house bank and submit it there. Some banks get in and offer similarly good conditions. If the house bank does not make a similar offer, the switch to cheaper financing is economically the best option.

Complete rescheduling online – this is how it works

  1. The process starts quite simply by entering the desired loan amount along with the term and purpose in the comparison calculator. Interested parties enter their bank details and personal data such as name and address.
  2. Now borrowers receive a concrete, but still non-binding offer.
  3. In the course of the further process, the identification by Video call arrives. Credit seekers must have their identity card ready.
  4. The conclusion of the contract is also online. Borrowers sign electronically. In many cases, the desired amount will be transferred on the same day.

To complete the rescheduling online, borrowers must be at least 18 years old. The main residence must be in Germany. In addition, a German bank account with regular cash receipts is required. The credit rating is also being checked: data is requested from the SCHUFA. Depending on the amount of the loan, additional financial framework data is requested from the potential new lender.

Conclusion: Consumers with debts should observe interest rates regularly

Overdrawing the checking account is a common reason that causes consumers to think about rescheduling. However, long-term loans should also be reviewed in view of the potential savings in interest rates. The larger the residual debt and the higher the valid interest rate compared to the debt rescheduling loan, the higher the potential savings amount. Any consumer who lends over € 1,000 or regularly overdraws his current account should follow the current trend in interest rates in order, if appropriate, to restructure debt at the appropriate time.

When is a private equity loan necessary?

When liquidity is scarce and we urgently need money to cover a problem, we face a situation in which there is only a single solution through the provision of urgent money. This situation can be expenses for displacement or a disease, an important project, anything that needs the injection of money promptly; but unfortunately we are at a time when requesting a loan from a bank is very difficult. The bank has closed the credit due to the financial crisis, now they ask for many requirements and many conditions that most customers can not meet. Let’s see when a private equity loan from private lenders is necessary.

Through the loan of private capital we can face difficult situations, companies like ours provide money to their clients with the sole condition of a guarantee, which can be real estate or of any kind. This means that the user can contribute any property, be it a vehicle, real estate, art pieces, etc. Everything is ok except the jewels. In this way, there is the possibility of guaranteeing a credit with any guarantee, there is a large number of options among which the consumer can select the one that best suits him. Our company will give you an amount of money whose maximum will be between 20% or 25% of the value of the guarantee, it also depends on the quality of the guarantee presented. As for the real estate that guarantees our private capital loans, we must emphasize that these must be free of charges and mortgages to be valid.

In this way, we accept houses, flats, premises, etc. parcels, land or plots are not valid. We also want to mention the advantages of these private equity loans, the speed is the most notable. The user who urgently needs money appreciates to a large extent that he is provided with money quickly without having to ask too many requirements, papers or conditions. Our company can make this capital to be deposited in the current account of the consumer in less than 72 hours, provided that the documents have arrived correctly to our offices. Among other virtues that have private equity loans, we emphasize that our company can give money to people who are in unfavorable economic situations such as delinquency, therefore, find themselves inscribed in the list of the asnef is no longer an inconvenience at the time of request money in our company. We also grant loans to people who do not have a job and do not have a monthly payroll. The guarantee provided by the consumer allows us to grant loans to any client. Our company is formed by a team of private and private lenders and we are professionals who have a lot of knowledge on real estate and financial issues, this allows us to carry out a series of procedures and deal with a lot of aspects, with this we accelerate the process so that The client gets his money in the shortest possible time, freeing him from unnecessary bureaucracy. We can take care of the official appraisal of the home and at a price that is economical for the consumer, we never charge money in advance and we take care of a large amount of paperwork.

    What are the advantages of online loans compared to traditional banking?

    It is increasingly common to resort to online loans instead of traditional banking to deal with unexpected economic problems or to obtain liquidity alternatively and quickly and easily. This situation has led to the creation of a large number of online lenders that have become a tough competition for traditional banking, which today is not able to keep up with the vertiginous pace that this type of companies have generated, although it is not possible to deny that the batteries are being put on very quickly. We want to take advantage of this article to deal more carefully with the advantages you can obtain in online loans compared to those offered by traditional banking. Let’s see which are the most striking.

    The entry of the internet into our lives has radically changed the way we communicate, live, and carry our finances. Online financial services began to enter the Spanish scene from 1995 and have not stopped growing radically since birth thanks to the opportunities they offer with respect to other loan alternatives.

    • Undoubtedly the alternative that attracts most of this type of lenders is the ease and speed with which liquidity is achieved. Today, although traditional banking is beginning to bet on a much closer and faster service, it is undoubted that online lenders continue to win the game in this aspect since they do not require a direct contact with the client to to be able to carry out the necessary procedures for the future loan.
    • Another advantage of online banking is the intimacy that is achieved. To request an online loan it is not necessary to explain or justify the reason for which the loan is requested.
    • Undoubtedly another advantage is that it is not necessary to move to formalize the loan, or have to be bound to certain times or make indiscriminate queues first thing in the morning in our bank to obtain a loan. Online lenders make your requests at any time and virtually from any device. Today there is even the possibility of obtaining an online loan through the telephone.
    • Online loans are also characterized by allowing you to have money in our stream in a minimum of 15 minutes and a maximum of 48 hours. Everything depends on the amount you request. This immediacy is undoubtedly one of the strengths of this type of online loans, because many of the people who resort to this type of alternative do so because of the immediate need to obtain liquidity.
    • Another advantage of online loans is the possibility of making comparisons through the internet to obtain the loan that best suits what we need at any given time. You can compare conditions without any obligation to acquire one or another loan and discard directly those that do not agree with what you need at that time and without having to travel to your bank’s office to finish explaining the conditions of your possible loan.

    If you are still not convinced, we want to finish clearing your doubts by indicating that 20% of financial operations in Spain are carried out today through this type of private companies. Undoubtedly, the difficulty of obtaining loans and credits through traditional financial institutions has allowed this new liquidity system to shoot up. 

      New car financing – now top rates

      The purchase of a new car is one of the biggest investments that many consumers make in their lives. If the cash is missing, it must be an attractive financing. This can come from a branch bank or an online bank. It is important that consumers compare offers and find out in detail about the variants. This way a suitable financing offer with good conditions can be found.

      The most important thing at a glance:

      • New cars can be financed with different instruments: installment credit, balloon credit and cash.
      • Car loans are provided by partner banks of car dealerships as well as independent banks, with the latter usually offering better conditions.
      • Borrowers should always compare multiple bids to find the provider with the lowest interest rates.

      What is a new car financing?

      A new car financing is the financing of vehicles that are either brand new or with daily approval. In principle, day registration is a special form of new car business in which dealers can offer their customers special discounts. Legally speaking, a car is a new car if the brand new vehicle is offered unchanged and there is a maximum of twelve months between the production and the conclusion of the purchase contract .

      Which types of financing are available?

      Which types of financing are available?

      Consumers can finance a new car in three different ways. These are cash payments, financing via a regular loan and three-way financing or similar balloon financing.

      Cash: Pay cash at the dealer

      Cash payment in connection with the purchase of a new car means that the dealer receives the purchase price in cash from the buyer. How the buyer got the money does not matter. This means that the cash can be savings or a loan that the consumer has taken out of another bank independently of the dealer bank. Some dealers offer discounts if the customer pays immediately. Others, however, do not like paying in cash because they may miss out on a lucrative lending transaction.

      But for the customer, the cash payment – mind you without borrowing – always has the advantage that the car immediately passes into ownership. In addition, if consumers dispute the purchase from their own resources, they will not incur any additional costs, as they would if they took out a car loan.

      Tip: cash or financing? First check costs, then decide.

      If the money is not liquid, but is currently tied to securities, for example, the car buyer should check to what extent the sale of the securities is financially detrimental. If the interest losses are lower than the costs of financing through a third-party bank, the cash payment is the economically correct decision. But if the interest losses are higher, it makes sense to finance the car.

      Financing a new car through a car loan

      If not enough cash is available, the new car can be financed. This can be done either through the partner bank of the dealership or via a bank independent of the dealership. In this case, a car loan comparison is definitely recommended to find the cheapest deal.

      Financing via dealer bank

      These aspects play a role in car financing via the dealer bank:

      • When financing the car through the partner bank, it is possible to get very good conditions for certain (special) models. Who gets involved, can sometimes save a lot of money. However, it should be noted that special models often do not easily find a new buyer for later sales, as do standard production models.
      • For partner banks, some offers are inflexible in terms of repayment and loan amount. This means that the needs of the borrower are only partially addressed.
      • Many favorable offers from partner banks are targeted to non-binding price recommendations. For this reason, the negotiation of the purchase price is usually unsuccessful.
      • Car financing through a dealer bank in many cases requires a down payment of between 20 and 30 percent of the new car price.
      • Car dealerships occasionally advertise zero-percent financing or offer car financing at monthly discount rates. However, it may happen that additional costs (insurance, high purchase prices of the vehicle) are reflected in the fine print.
      • Last but not least, a car salesman and not a finance expert arranges a loan to a customer. Targeted queries regarding details of the credit agreement can not always be answered correctly and in full due to a lack of specialist knowledge.

      Financing via free bank

      Car financing through a bank independent of the dealership is usually more consumer friendly. This has several reasons:

      • If consumers borrow money from a bank independent of the dealership, the vehicle model does not matter in principle. If you find a cheap loan provider, you can use the money for any model.
      • A deposit on the purchase price is not mandatory.
      • A non-bank bank is free to set financing terms such as term, special repayments or a grace period.
      • The employee of the financial institution is a specialist and can answer all questions regarding car loan.

      Even though car financing through an independent bank may at first seem much more consumer-friendly, the partner bank’s offers should be compared with what other banks offer. Only then does it become apparent who really is the best financing partner.

      Tip: Five-year loans are ideal for new car financing because they are cheaper than longer-term loans. The reason is that the risk of repairs and costly maintenance is low during the first five years. In this respect, the car could be sold well within this period, if the borrower could not meet his payment obligations.

      The three-way financing: This is how the balloon loan works

      The three-way financing is a combination of credit and leasing. With this form of financing, borrowers pay only a small portion back to the lender during the term of the loan, sometimes even only the interest. At the end of the term, a large final installment is waiting for the consumer. This high final rate is also referred to as a balloon – hence the name balloon financing. The three ways open to the consumer now are the following:

      1. Repay the remaining debt in one sum and keep the car.
      2. Continue to finance remaining debt / extend the financing of the car.
      3. Return the car to the dealer. The value of the vehicle is offset against the remaining debt. The difference is to be repaid to the lender.

      To note in this type of auto financing the uncertainties that arise especially in the third way. The dealer determines the vehicle value and will most likely value it for his own benefit. It is therefore recommended in the contract that an independent appraiser determine the value of the vehicle at the time of return. Three-way financing is basically the most expensive option and should only be considered when consumers value flexibility.

      Tip: Any consumer who takes out a car loan for new car financing, usually committed to payments over a period of several years. The amount of the monthly burden must therefore fit the long-term personal budget. Therefore, a meticulous review of your own financial framework is recommended.

      Apply for a loan for a new car: It succeeds quickly and smoothly.

      Applying for a loan requires only a few steps. Prerequisite for the approval is first that the applicant is 18 years old and has a main residence in Germany. In addition, a German bank account is required, on which regular cash receipts such as the salary are recorded. If these basic requirements are met, the application is made according to the following scheme:

      1. Applicants select the loan amount, duration and purpose for their loan – in this case new vehicle
      2. After providing the bank details and some personal data, a loan offer will be created.
      3. By means of uncomplicated video call the identification takes place. The signature on the loan agreement put applicants electronically.
      4. Banks check the creditworthiness of applicants, therefore certain financial information must be provided during the credit check. In addition, banks check the information provided by SCHUFA. For this reason, prospective creditors must give consent for the bank to obtain the information.
      5. The loan is disbursed after checking the creditworthiness.

      Conclusion: Financing new cars online is up to date and uncomplicated

      Those who do not have sufficient reserves to buy a new car directly should usually finance it through a car loan from an independent bank. Borrowers can compare different offers from banks to get the cheapest possible loan. In particular with direct and on-line banks the application runs off then very uncomplicatedly.


      Is a particular loan safe?

      Private loans are the best option available today because banks do not provide liquidity to many of their clients, financial institutions ask for many requirements and not all can be met. That’s why a large number of people turn to private loans, companies from private lenders grant their clients loans without having to meet as many requirements as the aforementioned bank asks, let’s see how safe a particular loan is.

      Private lending

      Private lending companies have been operating in our country for a long time and there is currently a regulation for the activities developed by this type of companies, the lenders’ companies are regulated by the Ministry of Health and Consumption and that is why our company adjusts to the norms and laws referring to private loans and financial services. We offer our clients private loans with the sole guarantee of a real property or any other kind, therefore, the user can guarantee this credit with all kinds of goods provided they have the necessary value to grant the amount of money requested by the client.

      Our private lenders offer loans that can be guaranteed by vehicles, pieces of art, real estate, etc. everything works and everything is valid as long as it has enough value for it and there is only one exception that are the jewels, however, there are a large number of options available for the client to select the one that most interests him. We provide up to 20% of the value of the guarantee, sometimes up to 25 depending on the quality of the guarantee and in terms of real estate that are guarantees or guarantee for our credits, they must meet a very important condition so that we can accept them as such. Real estate must be free of charges and mortgages and we accept apartments, houses, premises, etc. Solar, plots or land are not valid because they are goods whose prices vary too much and therefore are not acceptable guarantees. These particular loans have a number of advantages compared to the loans offered by banks, the most notable is the speed with which we transact the operation and the time in which the client manages to have his cash in his checking account is very reduced, less than 72 hours provided that in our company we have received the necessary paperwork to start the procedures. Another advantage is that we grant money to people who are enrolled in lists of defaulters or who do not have monthly payroll, this unfavorable economic situations are no longer an impediment to get an amount of money necessary to get ahead.

      The guarantee allows us to provide credits to all our clients. Another advantage is the early cancellation with a 0% penalty provided that the user has been with us for a minimum of one mandatory year. Our company develops its activities within the legal framework and thanks to our professionals who have experience and knowledge in financial and real estate matters. Our training allows us to deal with a large number of procedures and accelerate the process, we do not ask for so many documents and papers to the client and therefore, everything becomes simpler. We are able to carry out many tasks and we can take care of the official appraisal of the home and do it at an economic price for the client, we do not ask for money in advance and we carry out everything we can so that the user does not have to worry. You can feel totally safe and confident because the transactions are signed before a notary and those signatures can be made anywhere in Spain without the need for the client to move.

        How long does an urgent loan take?

        Requesting a quick loan almost always is due to truly urgent causes, those customers who need money quickly is because they have to face expenses that they have not been able to foresee; These are circumstances that usually occur without prior notice, other times an unfortunate economic situation such as unemployment or debts can make it very difficult to solve economic problems that occur without prior notice. Therefore, for many clients it is very important to know how long an urgent loan takes, a quick credit of private capital.

        Urgent loan

        This type of loans are provided by companies of private lenders, companies whose funds come from private investors and these are made available to these entities to provide them to their customers in exchange for a return, through this service many people can get a loan they could not get in any bank, since they do not meet the necessary requirements for it. We can assure you that in our private credit company, an urgent loan takes very little time to reach your applicant; In less than 72 hours the client can use the cash. This is a very important element for those users who need this liquidity contribution as soon as possible. To get these urgent loans, you only have to meet a condition, it is to provide a guarantee that can be real estate or any other kind, through this guarantee the user guarantees the loan and we will grant you an amount, whose maximum will be between 20% or 25%, depending on the quality of the proposed guarantee.

        The most important thing is that the user can guarantee the credit with any property, not only real estate, this loan can be guaranteed with a car, pieces of art, taxi licenses, etc. the only exception are the jewels. We can say that the user who needs quick money can obtain with almost certainty the amount he needs since we provide him with a large number of options. The real estate guarantees only have to meet a condition, they must be free of all types of charges or mortgages and may be valid floors, houses, premises, etc. We do not accept lots, land or plots. The urgent loans that we provide have other advantages, we do not ask for so many justifications, nor paperwork and the procedures are accelerated enough because our team of professionals always deals with as many managements as possible. The user has the option to request a minimum loan of € 3000 and all the credits are characterized because they can be paid in a very flexible and comfortable way, always adapting to the personal needs of each client. In this way, the user can repay the terms on a monthly, quarterly, semi-annual or even annual basis. It will not suppose an added economic burden since the client can pay it comfortably according to his circumstances. In the case of real estate guarantees, we can study the financial operation only by providing a simple note of the record. Because our team of experts is made up of professionals who have knowledge in financial and real estate matters and therefore, we often carry out feasibility studies totally free for the client. The urgent loans that we grant in this company, take very little time to materialize, in less than 72 hours you can make use of the cash in total security, if you have doubts about it you can consult them through the web form of this page or directly in the customer service phone.

          The instant loan: if it has to go fast

          The instant loan is the “turbo option” to apply for a loan. This high speed begins with the application for credit – usually online – and extends to the disbursement, which is sometimes 48 to 72 hours after the first credit request. A definition of how the application is made and for which target groups this loan is available is shown in this article.

          What is an instant loan?

          This loan has a pretty promotional name. “Immediately” implies that the money the borrower wants to lend to a bank is on the same day. Of course it does not work that fast, although the loan undoubtedly scores with the shortest processing period of all types of credit.

          Despite the auspicious name, the payout can only follow the application for a loan, including private credit bureau information. The procedure to apply for a loan remains the same as the repayment obligation. An instant loan is a “regular” loan insofar as a classic repayment also takes place here – when, in what installments and at which loan interest rate is a contractual component.

          However, the loan request is processed much faster than other loans. This means that usually follows directly on the loan request an instant confirmation or an immediate rejection . Attention: At this point consumers have to read carefully. An immediate commitment does not mean that money will flow the same day. Only if the lender identifies an “immediate payout” can the lender quickly dispose of the money.

          Who awards instant loans?

          Above all, this loan is a product that has direct banks in its portfolio and there is a good reason for that. The direct bank offers its customers 24/7 banking services 24 hours a day, seven days a week. Only with this basic orientation is it also possible for them to offer this loan – despite the regular application procedure, including obtaining the private credit bureau information.

          The alternative is the house bank. Who gets along well with the bank adviser of the house bank and maintains a long-standing business relationship, which could also be lucky with house bank and get a quick loan. This can not compete with the online instant loan, especially with regard to the availability of money. While the borrower is talking to the bank adviser, clarifying conditions, perhaps going to the branch or receiving the documents by e-mail and processing them digitally, the online instant loan with the direct bank has long since been completed.

          This is how the application for an instant loan works

          The reasons to claim an instant loan are many. Be it that the family car breaks down, a new washing machine is needed or other unforeseen events make sure that short-term money is needed.

          As a rule, consumers consult a comparison computer in this exceptional situation and conduct an instant loan comparison. With this, they go the direct route to personal instant loans and save interest by comparing them. The four steps of instant loan application:

          Step 1: The credit comparison

          The credit comparison works just as simple as the instant loan, as with many other loan options:

          • Enter net loan amount
          • Set the runtime
          • Specify the purpose
          • Start credit calculation

          Fed up with this information, potential borrowers receive a list of results that shows the lending bank, the monthly installment, the borrowing rate and the annual percentage rate of charge, and provides more information about eradication at the click of a mouse.

          Step 2: Make a loan request

          In order to make a non-binding and free loan request, you must specify how many borrowers there are. Tip: Registering a second borrower often helps you to get more favorable terms. Afterwards, the personal data are to be deposited and a proven income proven or information about the financial situation must be provided.

          Note: This form of credit request does not create a negative private credit bureau entry. The score value (private credit bureau score) remains untouched – despite private credit bureau’s request.

          This request ends with a positive or negative decision , that is: The bank checks whether the borrower has a negative entry to the private credit bureau and also checks other decision criteria that speak in favor of or against lending.

          Step 3: Received confirmation. Submit documents.

          In order to get the money as quickly as possible, the required documents must be submitted within a very short time. These include, for example, actual proof of income. Above all, the process of so-called legitimacy is important in online credit. This is necessary so that the bank can ensure that the borrower is really the person whose details appear in the loan request.

          Basically, there are two variants here:

          1. the PostIdent and
          2. the VideoIdent procedure.

          Due to time constraints, the variant “Video-Ident” (“Online-Ident”) is much more useful and more comfortable. For the sake of completeness, both options are compared in the following table:

            PostIdent Video identification method
          description In this way, the postal worker usually checks directly in the store or as a postman at the front door, whether the borrower fits in persona to the details in the loan application. In this way, the applicant does not have to move a meter, because the VideoIdent process runs directly on the computer. Online, the adjustment of personal data. An authorized employee checks the data in the video chat. A confirmation is given by TAN. The VideoIdent process requires a good-resolution camera as the ID card and applicant are photographed. If the image quality is too poor, the VideoIdent process can not be used.
          advantages The process is cheap, fast and requires no expertise. The time factor that is particularly important in online instant loan is the biggest benefit of this process. Borrowers can quickly and easily carry out the legitimization right after the possible immediate commitment.
          disadvantage Especially the way to the branch – the biggest disadvantage – makes this procedure useless for the instant loan. The basic requirement for video identification is a stable and, above all, secure internet connection.

          Step 4: Received payment

          The payment is very timely at many banks, although not “immediately” after the loan application. How fast the money lands on the account depends on the lending bank itself and also on the bank of the recipient. Often, banks show how fast they can make the money available after the instant online pledge. These figures are only indicative, but are often 48 to 72 hours.

          What should be considered before the conclusion of an instant loan?

          Anyone opting for an online application with online instant confirmation must pay attention to the same parameters as a regular installment loan.

          Is the purchase, which requires the immediate loan, mandatory at the present time required?

          At this point, every consumer should ask himself if it would not be possible to be more economical and make the purchase without incurring debt. So from a financial point of view, it may be more sensible to save a few more months on the financing purpose than to take over an instant loan. If borrowing makes sense even after considering the personal (financial) situation, nothing speaks against borrowing.

          Is the bank that promotes the cheapest interest really serious?

          A look at the contract details is mandatory with every borrowing. It is important – at German banks and foreign banks – that the provider operates transparently and seriously. Cheap terms are tempting, but only on fair terms is an online instant loan a top credit.

          Is your own creditworthiness enough to repay the loan within the agreed timeframe?

          A negative private credit bureau entry usually leads to the rejection of the instant loan . But that also means: In the past, according to private credit bureau, it was not the best thing to do with the payment behavior of the borrower. If this is the case, a rethinking should take place – and not the alternative route through a debt-free loan should be chosen.

          Is the borrowing rate or the effective interest rate decisive?

          The debit interest is only the rental fee that the bank charges. The problem with that is that the nominal interest rate does not include any additional costs . More meaningful against this background is the effective interest rate , it really covers all credit costs.

          How should I choose the repayment term?

          As far as duration is concerned, the shorter the repayment term, the cheaper the loan. At the same time, the burden on the household budget increases due to the monthly repayment rates. In this respect, borrowers should always choose the term as short as possible, but as long as necessary. To determine this period, it is worthwhile to carry out a household bill before borrowing . It shows how much money in the month after deduction of all living expenses can still be made for a loan repayment.

          Is there an instant loan without private credit bureau?

          Is there an instant loan without private credit bureau?

          The answer to this question is yes. What follows, however, is a big “but.” Basically, it is not advisable to take out a private credit bureau-free loan. A private credit bureaufreies loan is so called, because in the lending no private credit bureau query by the bank. In other words, the bank has no information on how it is charged with the payment behavior of the applicant. As a result, the credit default risk for the bank is comparatively high – and the lender only assumes a high level of risk if he receives correspondingly high interest rates for the loan.

          In addition, a negative entry is not only a warning signal for the bank, but also for the applicant. A negative entry may mean that a loan has not been serviced or another payment obligation has not been met – as a result of which an entry in the private credit bureau file has come about. In this respect, the “legacy” should first be settled before a new loan is taken.

          Is there an instant loan for students, unemployed, self-employed or apprentices?

          One thing all these people have in common: They usually have only a small budget or no regular income. Basically, an installment loan for these target groups is only possible if there are collateral.

          • Is there an instant loan for students? Usually not. The exception may be smaller sums, in which, for example, the parents act as guarantors.
          • Is there an instant loan for the unemployed? No, the unemployed receive no loans from reputable banks.
          • Is there an instant loan for the self-employed? Yes, if the credit rating is positive and the self-employed person can prove his income through a current BWA or income tax assessment.
          • Is there an instant loan for trainees? No, not usually. The exception may be smaller loan sums.


          Renovation loan: renovate at the best conditions!

          A renovation loan makes it possible to beautify your own four walls with renovations. Whether it’s a simple painter, laying a new floor or a complete refurbishment, this loan gives consumers the financial means to design their home or make repairs. The following guide shows what to look for when borrowing and how it can be cheaply renovated.

          The most important thing about the renovation loan:

          • The renovation loan is a purpose-built loan that provides the financial means to beautify or repair a property.
          • In most cases, applicants with a regular income do not need to provide any additional collateral for the renovation loan.
          • A renovation loan is open to tenants and property owners alike.

          What is a renovation loan?

          Basically, a renovation loan is a classic installment loan. This means that the applicant receives the financial means for the renovation from the bank and in return pays interest to the bank. For repayment of the loan, borrowers receive monthly installments. The financing amount for a loan for the renovation is usually between 1,000 and 75,000 euros.

          The difference to the regular installment loans is that this form of loan is earmarked. The borrower must use the money made available to him for renovations to a particular property and may not spend it on other purchases such as a new television. Borrowers are usually required to provide the bank with evidence of expenses and, therefore, on the earmarked use of the loan.

          What initially sounds like a disadvantage for the borrower, however, achieves the opposite: The banks provide their customers for the renovation of the property lower-interest loans with better terms available. The renovation loan is significantly cheaper than a classic installment loan without earmarking.

          Renovation or renovation: What is the difference?

          Renovation or renovation: What is the difference?

          Renovation and renovation are often used as synonyms. There is a significant difference between a renovation and a renovation, which also affects the credit:

          Renovate (beautify)

          Renovation works are characterized by the fact that they are not necessarily necessary. They aim to beautify the home and eliminate visual defects. An example of this is the replacement of floor coverings. Basically, the old floor can still use, but the homeowner feels it as a blemish. In this case, the exchange is not necessary, but is used to improve the living.

          Refurbish (repair)

          The difference between a renovation and a refurbishment is that a refurbishment measure is a necessity. The works will be carried out if a damage or a defect in the apartment is to be eliminated. Thus, the homeowner or tenant does not want to eliminate forcibly or not exclusively optical blemishes, but to restore or improve the quality of the property. Renovation measures include, for example, the removal of mold or the repair of leaky doors and windows.

          With regard to the effects of reorganization, namely the preservation of value of a property, real estate owners belong primarily to the applicants. Tenants are rarely willing to take remedial action on their own account , as it is usually not part of their duties. But in principle you also have access to the restructuring loan.

          Note: The renovation loan is also called the rehabilitation loan, although both terms have a significant difference. For lending, however, it does not matter whether the loan is used to beautify the home or for repair work.

          Is there a difference to the modernization loan?

          Is there a difference to the modernization loan?

          Yes, there is a big difference between renovation / refurbishment and modernization. Modernization measures aim to save energy or water, create new living space or significantly increase the value of a property. This includes, for example, upgrading with solar systems.

          In comparison to the renovation loan, borrowers usually apply for higher lump sums for the modernization loan. They also have the opportunity to receive a low-interest and subsidized loan from Bank if the construction measures lead to the Efficiency House standard, for example.

          Tip: The public sector grants particularly low-interest loans through for certain modernization and refurbishment measures. These include, for example, the replacement of windows and doors to improve energy efficiency or burglary protection, the installation of energy-efficient heating or the elderly / handicapped-friendly renovation of a bathroom.

          What collateral is needed for a renovation loan?

          A big advantage of the renovation loan is that it is awarded very unbureaucratically. For the majority of banks, income is sufficient as collateral, which is why the prospective borrower will have to provide proof of income over the past three months. Most credit institutions refrain from registering a mortgage when applying for a renovation loan, which in any case is only available to applicants who own the property to be renovated.

          Further collateral is only required by banks if the financing amount is too high in relation to regular income and available cash. In some circumstances, the bank may require proof of equity.

          How to apply for a renovation loan?

          The homeowners and renter can request the credit for the renovation online or at their house bank. Basically, an online loan offers the advantage that many different providers can be compared. The applicant is not limited to the offer of the house bank, but can use the best conditions of other credit institutions. In order to cheaply renovate, consumers should check the bids from other banks online before starting the renovation loan. How this works, borrowers learn below:

          Step 1: Determination of financing needs

          First, borrowers need to find out what the actual funding needs are. It may be necessary for the applicant to provide the Bank with a renovation or rehabilitation plan listing all expenses incurred.

          The best method of costing is to get cost estimates for your planned actions. Many lenders also request this evidence for the review of the loan application.

          Tip: In principle, borrowers should pay part of the renovation with equity to lower the cost of the loan. However, as renovations as well as renovations can always lead to unexpected difficulties and additional work, consumers should not invest all their reserves. It is advisable to reserve some of the funds for unforeseen events.

          Step 2: Select runtime

          Over the term – together with the loan amount – the monthly charge is defined. This means that the shorter the duration of the contract, the higher the repayment and vice versa. Applicants who choose a short term must therefore have sufficient financial resources to cover the high monthly installments.

          However, the term should not be too short. While a low rate will have a positive impact on the budget available, it will incur additional costs. Because with a long term, the interest burden increases and the renovation loan becomes more expensive.

          Tip: A listing of all monthly earnings and spend helps to determine the maximum amount for the monthly installment. Costs of living and financial reserves must also be taken into account.

          Step 3: Get an offer

          Applicants use the loan calculator to obtain a favorable offer for a reorganization loan. In these, they enter the loan characteristics such as the purpose, the financing requirement and the term. Within a few seconds, the comparison calculator determines the lowest-interest offer free of charge and without obligation.

          Step 4: Apply for a renovation loan

          After providing the best offer, interested parties can take advantage of this. For this, the associated form with the personal details must be filled in, which can be easily implemented on the computer.

          Subsequently, the identity of the applicant is determined via a video call. The applicant holds the identity card or passport in front of the camera and can be identified by the responsible employee. At the end, the application will be signed electronically and the document will be forwarded directly to the bank with all necessary documents. Depending on the financing requirements and the bank, the following documents must be submitted:

          • Salary statements for the last three months
          • Possibly. Proof of ownership of the property
          • Rehabilitation plan and cost estimates of the craftsmen
          • evidence of collateral or guarantees may be required

          Step 5: Receive loans and cheaply renovate

          If the loan application is completed and the bank has all the necessary documents, the applicant receives the loan on the same day. The credit for the renovation or renovation can be used immediately.

          When and for whom is the renovation loan suitable?

          The renovation loan is in most cases the cheapest way to renovate a house or apartment. It can be applied easily, is low-interest and allows financing up to 75,000 euros. The loan is therefore suitable for any tenant or homeowner who wishes to have refurbishment or renovation carried out in the appropriate financial framework.

          The renovation loan is not suitable if very high expenses are necessary or modernization measures are planned. In this case, the modernization loan promoted by Bank is the better option , provided that the conditions for state support are met.

          Note: An alternative to the renovation loan is the regular home loan, where real estate owners usually benefit from lower interest rates. However, the term of this loan is longer and the conditions for the application are more stringent. For example, many banks require real estate owners to know that the property used for collateral is virtually free of debt. Sometimes due to this fact the earmarked loan for the refurbishment is the better solution.


          Documentation needed to apply for a personal loan

          Personal loans have become a very attractive financial option for many individuals. They are ideal to deal with unforeseen expenses or to cover any debt quickly. For example, many customers use them to get out of Asnef and have access to a wider range of financial options.

          But, do you know what is the necessary documentation to apply for a personal loan? In Lenders we explain it to you.

          Information about the necessary documentation to request a personal loan

          Do you know what is the necessary documentation to request a personal loan? You may think that you only have to present some papers to the credit institution that grants us the capital. But the truth is that it does not hurt to have other documents on hand before.

          Essential documentation that you must have before requesting a personal loan

          Think that these types of agreements are between two parties and that you must also have all the information possible to value the loan they offer you. Therefore, before making any hiring we advise you to have the following documents.

          • The FIPRE or Pre-contractual Information Card. To understand us better, it is the brochure with general information offered by credit companies. Normally you can access it even through the internet as it is usually digitized information.
          • The binding offer. The problem of FIPRE is that it is generic information that does not adapt to our request for credit. That’s where the binding offer comes into play. In this document the information is collected in a more personalized way regarding the loan that we need. Here we can check if the agreement includes links, if it is necessary to present endorsement or guarantor, if there are commissions of any kind, and so on. Nowadays it is mandatory that the entity offers this information to the client as long as the loan exceeds €200. Be careful, because despite his name the client is not obliged to contract the loan if the conditions do not interest him.

          Documentation that we must deliver to request a personal loan

          The next step will be to offer us the documentation that the financial institution needs to assess our file. This may vary relatively depending on the type of lender we go to. As a general rule, requests for information from banks are greater than those requested by private equity companies or private lenders. In general, many of these papers are aimed at the lender can check the financial solvency of the customer.

          Among the standard documents that you will be asked for, there are undoubtedly the following.

          • Copy of the DNI, with which to prove that we are. It will also allow the lender to conduct a study of our economic solvency.
          • Copy of the current account number in which the payment will be made. If we are going to contract the personal loan with our bank, this information will not be necessary.
          • Document with which the credit institution can verify our income. For example the last two payrolls, the work contract. Or in the case of the self-employed, the last declaration of income and quarterly VAT. Not all lenders request this information. In the case of those who work with mortgage guarantee is not necessary.
          • Bank movements. Many banks request an extract of the banking movements of the future client during the last three months. This way they not only know the income thanks to the previous documents but also the expenses they have.
          • If it is a mortgage loan… we can no longer consider it personal since in case of non-payment is not answered with our present and future assets, but with the property we have used as collateral. In this case it will be necessary to offer the own documentation that shows that the property is free of charges and that it is ours.

            What do you have to consider before asking for a personal loan?

            Personal loans are one of the most used financing methods by individuals. Whether to pay for a trip, a financial event, studies, repairs at home or any other type of commitment.

            However, it is often unknown what exactly this type of loan is and what should be taken into account before requesting it. From Lenders we want to solve all your doubts so that you have everything clear.

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            What is a personal loan?

            We speak of a personal loan to refer to the contract that the financial institution signs with the client. Through this contract the bank or financial institution advances a capital (known as principal) to the borrower.

            In return, the borrower agrees to return said principal in a specific period of time with previously determined interests.

            These personal loans are also known under the name of consumer loans.

            What should be revised to opt for one or another personal loan?

            To know which personal loan or consumer loan is most suitable for our situation, we must assess the following aspects :

            • Interests. The financial institution that offers the loan will set an interest rate in exchange for this amount. When it comes to choosing one or the other loan, it is best to pay attention to the APR. Since the APR includes the calculation of both the nominal interest rate (NIR) and the commissions involved in the loan.
            • Possible commissions. Both opening and partial or total cancellation. Many times a consumer loan with a low nominal interest may be less attractive than another with a higher nominal interest if the former includes many commissions. It is therefore important to take into account the commissions in order to know which loans are actually the most profitable within the period of time we request for their return.
            • Associated expenses.
            • Deadlines for the repayment of the loan.
            • Total to pay for each of the monthly installments.

            Be careful with the guarantees

            The main difference between a personal loan and a mortgage is the element that the financial institution uses as collateral to offer this loan in case of default.

            When we talk about consumer loans, the borrower offers all his assets as collateral. In other words, in case of default, the borrower must respond to the debt with all the assets he has, both present and future.

            The risk for this reason is greater for the entity that loans the capital than with the mortgage loans. In this case, the borrower, in addition to offering a personal guarantee, uses the mortgaged property as an additional guarantee. In this way, in case of default, the bank will keep the house.

            By assuming a greater risk of payment with consumer loans, the bank requests:

            • Higher interests
            • A lower repayment term.

            Do not forget that in the face of default, you respond with what you have. And this can be a lot or a little. Therefore they are much more expensive and there is less time to return the capital. That is why it is so important to consider if we really have the economic capacity to meet payment deadlines.

            To know our ability to pay, we must bear in mind that these fees, added to the rest of our loans (such as mortgages) should not represent an expense of more than 40 percent of our income. Otherwise it will be very difficult for us to make the payments.