Many consumers are multi-pronged when it comes to financing. No wonder – it’s easier than ever to take out a loan or sign an installment payment agreement these days. Especially those who like to shop and therefore get into financial difficulties from time to time make use of these funds, which are offered not only by the banks but also by many retailers. And so the new television is not paid for in cash, but rather paid off in installments. If a loan is added to finance the new vehicle, for example, a customer must
What does a good credit rating look like?
For a loan despite payment in installments – as with any other financing – the borrower must have a good credit rating. Otherwise, no bank in Germany will agree to grant a loan despite payment in installments. This then means that the search has to be expanded and is much more complicated than originally planned. On top of that, higher borrowing costs will have to be expected. Hence the question: What does a good credit rating look like?
A good credit rating is based on several pillars. On the one hand there is the Credit Bureau, which must be positive in order to support taking out a loan despite payment in installments. The same applies to income, which should come from a permanent and therefore permanent job. It must be well above the garnishment allowance and cover all expenses. Here it is worthwhile to do a quick calculation in advance of how much of the income will remain after all expenses have been deducted. The sum determined in this way can be used as a reference for taking out a loan.
It is also important that you are at least 18 years of age and have not yet reached retirement age in order to have a good credit rating. The banks really appreciate retirees as savers. But do not lend to them because advanced age is seen as a very high risk of default. In addition, there is a permanent residence in Germany and a German current account, which can be used for credit processing. All in all, this results in a good credit rating, which speaks for the taking of another loan despite payment in installments and does not hinder it.
Where can a loan be best taken out despite payment in installments?
Since loans are offered in many places these days, they can also be taken out anywhere. We recommend that the admission is based on the type of loan and the intended use. If a consumer item is to be financed, it is worth looking at the dealer for suitable financing. These are directly adapted to the purchase and do not require extensive documents when recording. On the contrary, the identity card and the consent to query the Credit Bureau are completely sufficient.
If, on the other hand, it is not yet clear exactly what the money from the loan is to be used for or if there are several projects to support it, then it is worth taking out a simple installment loan. This is available, among other things, directly on the Internet, where a comparison calculator determines and presents the best offers within a few seconds. If you then take out the loan directly on the Internet, you can look forward to low interest rates, uncomplicated processing and quick provision of the money.
On the other hand, anyone who appreciates personal contact with the bank must contact a local bank and make the application there. In addition to personal advice, there is also the option of having the money from the loan paid out in cash. Depending on what it should be used for, this can be seen as an advantage.