What really distinguishes a cheap loan
Generally speaking, a cheap loan is one that comes as close as possible to current and personal needs. Cheap does not always have to be the same as pecuniary cheap. Favorable is rather the result at the bottom line, after, seen graphically above the line, pros and cons are carefully compared. The original cost of the loan as a money lending is the interest. But often it does not just stay there. As soon as additional costs become due, they should, for the sake of completeness, be converted to the effective interest rate of the credit agreement and, so to speak, added up. Then, in many cases, a frighteningly high interest rate in the double-digit percentage range results. The borrower is now wondering if this loan is really that cheap.
Credit insurance – a business with fear or the right hedge?
For the borrower as the main earner of a family of many, it is certainly important to exclude as many risks as possible during the term of the loan. This offers a residual debt or a risk life insurance. Here, the features must be checked carefully. When is what for what amount paid, and what situations are excluded from the performance. This is contrasted with the family and professional situation of the loan seeker. A lifetime civil servant does not need unemployment insurance because he has his job safely until retirement. Such insurance is always an offer and for a job insecure or an unpredictable accident with fatal consequences also a conceivable right decision.
In short, it can be accepted – or not. It depends solely on how secure you are with your situation. From a psychological point of view, it is very quick to say “yes” when your financial advisor has approved vis-à-vis the loan application. The applicant finds this commitment as a concession and does not want to say no afterwards. Therefore, you should not mind your financial adviser. At Duratio, we have experienced experts in this area, who can advise you on the individual contract terms and discuss the advantages and disadvantages with you. Get in contact with us, we are always happy to help.
Credit case credit rating – also check the credit without private credit agency and compare
To assess the creditworthiness, the creditworthiness of the applicant is checked. All credit institutions as business partners of the private credit agency private credit agency do this on the basis of the private credit agency score as the percentage calculation of all entries in their database. The lower the percentage of the score, the higher the effective interest rate, which makes the loan more expensive. An alternative is the credit without private credit agency, which is offered by some German and foreign online banks. Here, the credit rating without private credit agency score based on a detailed self-assessment. Incidentally, this credit is then also not registered in the agency, which in turn protects the private credit agency score, but brings with it high interest rates.