SMS loans for the holidays are a bad idea even if you borrow for free

They reasoned that it would be better to live a little in a month after the trip and pay back the money later when the salary comes. This would then be better than buying the trip through some expensive installment plan.

Of course it is true and if you have no problem paying back the loan when the salary comes then it could be an idea compared to the installment. But the thing is that you should never buy a trip on any expensive installment so if you do not have the money you should not travel but be content with the Swedish sun.

Then it is probably quite common that people who come home from the holiday do not have fat directly in the account. Money has a tendency to fly away when you travel, which means that the following month can be quite tough and if you then have to repay a loan it can also be a problem.

Why Lenders Offer Free Loans

Why Lenders Offer Free Loans

One thing to keep in mind is why lenders offer their customers to take out a free loan the first time they become customers. It is not straightforward that they do this to be kind to the borrowers, but they obviously expect to profit from this.

The idea is that you will then come back to them as a customer and then pay money to borrow. Certainly if you are disciplined you avoid automatically borrowing where you have previously borrowed, but many do not act in this way, which means that the lenders profit from lending money for free.

This is another reason not to borrow money unnecessarily and you should actually see SMS loans for a holiday as an unnecessary loan. Swedish summer is often nice if you ignore a few days when it rains (which can be nice sometimes too) so enjoy here instead of traveling away if you have not saved money. If you have saved money, it is a whole other thing.

Our attitude to SMS loans

bank

We have here on the site advertising about SMS loans there is no doubt and we do not consider that wrong. What we are trying to do is always write about this type of loan correctly. This means that we do not hint that it can be an expensive loan to take. Then we believe that it is up to the individual to make a decision whether or not it is the right loan. Our goal is to provide as much information as we can to facilitate a decision.

To think about taking SMS loans then for holiday trips we consider a bad tip and that is why we do not. This regardless of whether the loan itself is free or not.

If at any point we have information that is doubtful, please contact us and tell us. There is a lot of text here on the site which means that mistakes can definitely have occurred. But we are happy to fix these until then.

How to Build a Good Credit History?

According to various sources, up to a third of people in Latvia have a bad credit history. These are the direct consequences of the economic crisis. Credit history is made up of several factors, the most important of which is credit repayment on time. As with any history, credit history cannot be completely repaired, but you can learn from past mistakes (or failures) and try to avoid similar ones in the future.

How to ruin your credit history?

How to ruin your credit history?

The lender shall be obliged to report any outstanding liabilities within 5 working days if the payment is overdue by more than 60 days and the amount exceeds EUR 150. Once the borrower has remedied the delay, the lender shall notify the Credit Register, the official indebtedness database of Latvia, within five business days. Information on new credit is posted to the registry within five days, while credit information is updated quarterly.

Note that overdue charges also include fines, so a loan of less than $ 100 can turn into a loan that damages your credit history by charging interest. Liabilities that may be recorded in the Credit Register include, for example, utility bills, rent, internet and telephone charges, etc. This means that your credit history literally starts with the first bill you are issued.

What should I do if my credit history is damaged?

What should I do if my credit history is damaged?

In credit bureaus, the debt history is kept for 5 years if the loan is paid off and 10 years if the loan is not paid. This means that if you have trouble repaying your loan, you may have trouble getting another loan for the next five years, or the next ten if you have opted or are forced to not pay it back.

Where to get a loan with a bad credit history?

While banks are clearly quite uninterested in working with people who have had problems in getting a loan in the past, other lenders – quick lenders, pawnshops – may choose to “turn a blind eye” to your bad credit history. Both banks and non-bank lenders may consider you a risk group, either by giving you loans at a lower interest rate or by requiring a collateral. Unfortunately, that is the price if you have not been able to repay your loans in the past.

Can a good credit history be improved?

Can a good credit history be improved?

Yes – that which is good can always be made better. These are the credit obligations that you have successfully fulfilled. For example, borrowing and successfully leasing a product or successfully borrowing and repaying a consumer loan will appear in your credit history and may increase the lender’s confidence in you (but may not mean anything at all). Credit register information is kept for 15 years in the Credit Register.

How to Build a Good Credit History?

Quite simply, cover your obligations on time. This can be done by borrowing responsibly – for example, Swedbank advises against borrowing if the loan is more than 30% of your monthly income. Note that while credit history is considered to be the data recorded in the Credit Register, there are other private credit registers, and banks, when issuing loans, review a bank account statement from the last 6 to 12 months, such as a quick lender for your payment, your credit history (or rather financial wisdom) may not be as good.

Bad quick credit

You must have heard at least something about fast credit. It is also very likely that you have received this information with skepticism. You may have ignored this information for one or more reasons.

Fast credit as something need

money cash

Some people do not recognize fast credit as something they need. Quick loans often look like fraud or are associated with other bad emotions. Quick loans do not have to be reputable. The biggest reason people turn away from fast credit is because they are wrong and they may not fully understand them and what they are used for.

So, if fast loans aren’t a total evil, then what exactly are they and why should you know that? Fast credit is also known as short term credit. This is a short term loan, usually about a month, to pay for things you can’t wait for.

On the repayment day, the instant credit is repaid, with little or no additional charge (first credit free of charge), and all transactions are completed. This allows you to pay your bills before they are overdue or even to take advantage of the amazing vacation offer (not recommended) you have always dreamed of.

Quick credit lets you get money when you need it

money cash

Yes, fast credit on the internet is not its best reputation. The reason why high speed internet has a bad reputation is because there are lenders who charge high fees on the loans granted. Compare lenders to avoid high fees or to avoid additional charges at all (first loan or CreditON promotional offer).

So now that you know what fast credit is on the internet, you know where to go if you need money urgently. The bigger question now is, if you choose to get fast credit online, how do you know you are getting the best deal? If a person wants to get fast credit on the internet, they usually want to find the best deal possible. The best course of action in this case is to do a thorough research on our website before applying for one credit. That way, you can know exactly where to go to get the best deal, and you don’t have to work with an expensive lender.

When applying for a fast credit online, make sure you use a secure website, as you will usually need to provide your full name, email address and other information.

Fast credit on the internet is very convenient and you should get the amount in your bank account within minutes. Also, there should be no problems with the documents and you should not send different documents.

Retirement savings: how to find out the amount on your individual account

According to the current legislation, each employer must annually transfer to the Pension Fund monetary contributions in the amount of 22% of the salary of its employees. From these contributions, the future retirement of employees is formed. The greater the amount will be transferred to the individual account of a person, the greater the number of points he will be credited. From the points scored depends on the size of the insurance part of a person’s pension. The amount of deductions will also affect the size of the funded pension (if the citizen has previously decided to send part of the insurance contributions to it).

Regularly monitor the status of your individual personal account – in the interests of each person. In this article we will tell:

  • how to check the status of your individual account;
  • what information does the Pension Fund report contain (on the number of accumulated pension points, the recorded work experience, the amount of pension savings);
  • how to use the information received.

How to get information about the state of a personal retirement account

How to get information about the state of a personal retirement account

The easiest way to get acquainted with the state of your individual personal account is to contact the portal of the State Service. To receive a report, you must enter your Personal Account on this popular site, and enter the query “accrual pension” in the search box. In the search results, the link “Check pension savings” will appear. At the next stage, you will need to go to the proposed link and click on the “Get the service” button.

Within one or two minutes you will receive a notification. It will contain files with reports from the Pension Fund in xml and PDF formats. They can be saved on your computer or sent to e-mail. This service is provided free of charge.

What information does the FIU contain?

What information will you get after opening the file?

Selected option to form a future pension

The report will indicate the method of forming the pension that you have chosen. There are only two possible options. It is possible to direct all 22% of the salary that an employer deducts to the formation of an insurance pension. Or you can send a portion of this amount (6% of salary) to a funded pension.

The older generation, born before 1967, have no such choice. All their deductions come without fail on the insurance pension.

What is the pension fund different from insurance? Cumulative contributions are credited to a non-government pension fund. This fund citizen chooses. NPF invests the funds in securities. Ideally, the insured person receives additional income from these investments. Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement The amount of this pension depends on the amount of savings. The state funded pension is not indexed.

Number of retirement points and recorded employment history

Number of retirement points and recorded employment history

The second important point that is contained in the FIU report is the number of pension points accumulated by a person (the value of the individual pension ratio). Points are awarded to a citizen for each worked year. The number of points directly depends on the size of the employee’s salary (the amount of employer contributions to the Pension Fund). Pension points are collected only by those people who are officially employed. The higher the salary of a person, the more points he gets. Important: wages must be “white”, that is, not hidden from the state.

To be eligible for an insurance pension for their working life, each person must score a certain number of points. In 2019, the required minimum is 16.2 points. In the future, the minimum threshold will increase. In 2025 and in subsequent years, to receive an insurance pension, you will need to accumulate at least 30 points.

The size of the pension insurance will also depend on the size of the individual pension ratio. Pension payments are calculated according to the following formula: the number of points scored multiplied by the value of one point is added to the base fixed amount.

will increase annually. As a result, by 2024 the minimum experience will be 15 years.

Also, the document from the Pension Fund will contain information about the length of the work experience, which is taken into account for retirement ahead of time.

All information on employer contributions and accumulated pension points is presented in the report by year, starting in 2015. Since that time, began to operate a new pension law.

Separately, date on periods of labor activity of a person up to 2002, as well as from 2002 to 2014, are given. All information is presented by year, name of the employing companies, the average monthly salary, the amount of insurance contributions to the pension fund. All of the above data on the work activity of a person has been converted into retirement points. From the report you can find out how many points a person could score before the new pension legislation came into force (until 2015).How will the savings be paid? Payment of funded pension begins after retirement. In some cases, the employee is entitled to receive the entire amount of savings at once, or to pay off accumulated funds during a certain period (at least for 10 years).

How to use information about the status of a personal account?

Based on the FIU report, you can see how you earn retirement points. From them will depend on the size of your pension in old age. This document clearly shows how strongly the individual pension ratio depends on the number of years worked and on the size of the salary received.

The FIU report also reflects all recorded information about your previous work activity. It may happen that some period is not included in this report. In such a case, documents confirming the fact of employment should be collected in advance and submitted to the Pension Fund department. Based on the new information, your individual pension ratio will be revised and increased.

Online-Loans-without-Private-Credit Test winner 02/2019 – our test!

According to statistics, more than three million German citizens are affected by negative Private credit entries. Negative entries can occur, for example, if you constantly overdraw your checking account or can no longer service loan installments. With a negative Private credit score, the chance of obtaining credit at the house bank is almost zero. However, there are also providers who give an online loan without Private credit. Below we would like to introduce the credit-without-Private credit test winner of our online credit-without-Private credit test.

Credit-without-Private credit test winner: Important at a glance

Credit-without-Private credit test winner: Important at a glance

  • Effective annual interest from 4.90 percent
  • Agency fee is due only after credit approval and credit
  • Credit also possible with bad Private credit rating
  • Maturities between 12 months and 120 months

What is a credit-without-Private credit?

What is a credit-without-Private credit?

It is not uncommon for beacons to reject loan requests because the Private credit score is too negative. But what should one do if one needs money, but does not get one because of the negative entries? Do not worry, it’s also possible to get an online credit-without-Private credit. Such a loan is a loan that is granted independently of Private credit and does not carry a Private credit note. Unfortunately, there are some black sheep in this industry who are trying to make a profit from the financial hardship of others. Interested parties should not rush and take a closer look at the offers. Often then find such dubious providers enormous costs, such as an agency fee, which is required before the loan approval. Far too high interest rates usually speak for a rather poor credit offer and customers should keep away from it.

Credit-without-Private credit test: That’s the winner

Credit-without-Private credit test: That

Crediter won the race for first place in our big credit-without-Private credit test. Test winner Crediter has specialized in arranging loans for more than 40 years. Its range of services includes instant loans up to 100,000 euros, ancillary loans up to 50,000 euros, loans for retirees up to 80 years, real estate financing even without equity and, of course, Private credit-independent loans.

The offer of the test winner Crediter

The offer of the test winner Crediter

Credit offer received without obligation

Anyone who does not get credit from their house bank due to a negative Private credit rating, has the chance of getting a loan through this provider. The conditions for granting a loan are as follows:

  • The borrower must be at least 18 years old
  • The residence must be in Germany
  • The borrower must have a regular income (employees, civil servants, pensioners, etc.)

A negative Private credit entry is in the credit-without-Private credit test winner usually no reason for refusal. In order to find the right offer for each customer, Crediter is in contact with up to 20 banks at home and abroad. As a result, the borrowers receive a non-binding offer. This is absolutely free and customers can refuse this at any time. As with all other providers in this sector, Crediter will incur an agency fee. However, unlike many other companies, it does not have to be paid until the successful conclusion of the contract and the money has been credited. This fact alone demonstrates the seriousness of the provider.

The annual percentage rate starts with our test winner at 4.90 percent pa At this point, however, it must be said that the amount of the interest rate depends on the creditworthiness of the customer and can be up to a maximum of 16.90 percent pa. Even though the maximum interest rate initially appears to be quite high, it must be kept in mind that Crediter takes on an increased risk when arranging loans to customers with a lower credit rating.

In terms of maturity, these are completely flexible and range from 12 months to 120 months. The possible loans are between 1.000 Euro and 100.000 Euro.

Our conclusion: Serious provider with years of experience

Many borrowers have already given up the hope of getting a loan to fulfill, for example, a big dream.

With our test winner Crediter, however, customers have access to a competent and experienced provider, who, even if creditworthiness is lower, usually allows a loan.

Online personal loans Test winner 02/2019 – our test!

 

 If you want to take out a loan, you do not necessarily have to resort to an installment loan from a bank. Meanwhile, there is also the possibility of online personal loans to avail. This then runs through certain providers who specialize in arranging loans between private individuals. In our personal credit test, we took a closer look at the offers of these companies and presented the test winner.

Facts about the personal loan test winner

Facts about the personal loan test winner

  • Arranging loans between private individuals
  • Loans between 1,000 and 25,000 euros possible
  • The amount of interest depends on the moneyor score
  • Interest rates start at 6.99 percent
  • After successful lending, a fee of 2.95 percent is due for borrowers and one percent of the loan amount for investors

What is meant by a personal loan?

What is meant by a personal loan?

Who does not know that? You want to finally buy a long-cherished dream of a car or a new washing machine, but can not afford this due to lack of financial resources. With a personal loan, customers have the opportunity to get a bit closer to their dream. Personal loans are brokered between private individuals. These are usually characterized by lower interest rates than a house bank. Furthermore, the chances of getting a loan are higher, as customers with a rather bad Private credit score get the opportunity to borrow money.

In Germany, for legal reasons, a bank must take over the financial management of the loan. Such a personal loan is particularly interesting for self-employed who want to build an existence. With a financial institution, entrepreneurs often have little chance of getting a loan, as they insist on income proofs, which a customer, who is only just starting his business, can show. For a personal loan, lenders tend to focus on a coherent business plan and realistic budget planning.

General information about the test winner moneyor

The idea for the company moneyor was born in 2006. The following year, the moneyor GmbH was launched. Since then, the company has already brokered nearly 35,000 loans and funded loan requests in excess of € 200 million. moneyor is the largest online marketplace for peer-to-peer lending and has attracted over 50,000 private investors. The company consistently has only positive reviews and opinions and has been certified by the TÜV. moneyor is located in Dusseldorf and customer support is available by phone Monday through Friday from 10am to 6pm. In addition, customers can also contact the company’s employees by e-mail.

Personal credit test: moneyor has convinced us

Personal credit test: moneyor has convinced us

With our personal loan test winner, customers can receive a loan quickly and easily. The registration is absolutely free for credit seekers. For this, the desired amount must first be selected. The possible loan amounts are between 1,000 and 25,000 euros. Subsequently, customers are asked to specify what the money should be used for and the loan request can be sent. In just a few minutes, borrowers can find out if available lenders are available for financing. Borrowers can increase the likelihood of lending by providing lenders with accurate accounts and credit information. moneyor calculates for each customer an individual moneyor score, which is determined on the basis of the personal credit rating. On the basis of this score then the appropriate interest rate is given.

As far as the costs of the test winner moneyor are concerned, according to our online personal loan test, a one-time placement fee of 2.95 percent of the loan amount is due for successful lending. But not only credit seekers can benefit from the principle of a personal loan. Lenders can view the lending of their money as an investment and benefit on average from a high interest rate. This is the test winner on average at 6.77 percent and thus promises a higher return than many investments at banks.

The registration is free for investors, as well as for borrowers, with our personal loan test winner moneyor. Only after a successful investment in a loan project, a fee of one percent of the investment is due. The fee will be retained after repayment of the first installment.

As usual in Germany, moneyor handles the loan via a bank. In this case, the Bank takes care of a smooth process. The South West Bank is a direct bank specializing in the provision of online credit.

Our conclusion: A good alternative to the house bank

Our conclusion: A good alternative to the house bank

Thanks to moneyor, borrowers no longer have to rely on their bank when it comes to applying for a loan. The principle is as simple as it is ingenious: loans are transferred from private customers to private customers.

Borrowers benefit from significantly higher credit opportunities and investors from high returns.

Loans in October

Lendico corporate loans

Saxony takes the least loans

Saxony takes the least loans

An Internet comparison portal came to the conclusion that the Saxons are lending the least money. Those responsible for savings banks and Volksbanks in the federal state of Saxony came to this conclusion. People from Saxony have made the fewest credit inquiries in the past twelve months and also received less money than people from other federal states.

The evaluation, however, referred exclusively to requests for installment loans on a credit comparison portal. Borrowers from Saarland and Rhineland-Palatinate received 15 percent more inquiries than the national average. The loan inquiries from Saxony, however, were 18 percent below the average of the entire Federal Republic. They ask on average a loan amount of 12,877 euros. Potential borrowers from Baden-Württemberg and Bavaria asked the highest sums. The loan inquiries from these two federal states, however, were also comparatively low overall. Other evaluations have already yielded similar results.

Companies received more loans in September

The monetary policy of the European Central Bank arrives at companies in the Eurozone. The ECB’s low interest rates, as well as the bond-buying program due to expire at the end of the year, are expected to encourage banks across Europe to lend more. In September, 4.3 percent more loans were granted to companies than in September 2017, according to figures released by the ECB. Already in August, 4.1 percent more loans were granted to companies than in the same period of the previous year. The number of loans granted to households increased by 3.1 percent. Also in August, the increase was at this level.

The figures also show that many banks in Europe have once again eased their lending policies in recent weeks. The good economy also played a role here. An exception is only France. The local banks have not changed their lending rules in recent weeks.

Demand for loans also rose

Demand for loans also rose

The ECB’s figures also show that demand for corporate, consumer and real estate loans was higher in the third quarter of 2018 than in the previous quarter. One of the reasons for this, according to the ECB, is that interest rates are still very low. Demand for these types of loans was also very high in the quarters before.

The ECB is of the opinion that bank lending requirements will hardly change in the fourth quarter of the year. The ECB conducts the Bank Lending Survey four times a year among banks in the euro area. The current survey involved 147 banks from across Europe.

Are P2P loans an alternative?

P2P loans are no longer an insider tip. The awareness of this form of credit continues to increase. Every month, many people find out about this still very young type of loan online, which is provided via special online portals. A peer-to-peer loan brings private investors and companies together. Some online credit comparison sites have included P2P loans in their overview.

The processing of these loans is often faster than with traditional bank loans. Often, 24 hours after borrowing, the loan is paid out to the borrower’s account. The group of people with opportunities for such a P2P loan is often larger than with traditional loans. In the case of the latter, for example, students, the self-employed or retirees often find it difficult to obtain a loan.

Credit check is carried out

Nevertheless, a credit check is also carried out on P2p loans. However, their rules are often not as strict as with banks. Although similar aspects are examined, their weighting is often different. Borrowers who have had a Private credit entry in the past, but can now demonstrate a good payment history, for example, here have a good chance of a loan. There are also similar requirements as with other types of credit, for example the age of majority and the main place of residence in Germany.

Borrowers thinking about a P2P loan should also compare the offers well. A comparison to traditional bank loans is also usually useful. The goal should be flexible financing with low interest rates. The cost of a P2P loan depends on the creditworthiness of the borrower. If you have a rather bad credit rating, you often pay higher interest rates.

Rescheduling makes sense in many cases

In Germany, the creditworthiness of the potential borrower is checked for each loan application. Therefore, good credit is a prerequisite for every form of credit. On the credit rating, it also has a negative effect, if someone already has to repay several loans. In this case, a debt rescheduling loan may be useful. This can then also contribute to improving the credit rating.

Frequently, borrowers still pay relatively high interest rates on their old loans. In the current period of low interest rates, it may therefore be worth considering replacing these expensive old loans with a debt rescheduling loan. The borrower can thus pay off his loans faster in many cases. Loans with multiple loans can thus bundle their obligations and get a better overview of their payment obligations. In the search for a suitable debt rescheduling also help comparison portals on the Internet.

Real estate loans still with favorable interest rates

Real estate loans still with favorable interest rates

Interest rates on long-term real estate loans have gone down again in recent months. Real estate loans are currently as cheap as they have been since January 2018. If one had to raise two percent interest on a real estate loan in August, it was only 1.76 percent in September. This interest rate applies to real estate loans with a term of 15 years. Anyone who takes out a real estate loan with a term of only ten years, currently pays only 1.33 percent interest.

The European Central Bank expects real estate loan rates to remain low over the coming months. The ECB is currently signaling that it may start raising interest rates from autumn 2019 onwards. As a result, interest rates could rise again for the first time in years. In the short term, however, real estate loans are not expected to rise in interest rates.

Installment credits often for cars

Installment credits often for cars

According to the banking association, more than 50 percent of all installment loans are earmarked for the purchase of a new car. In the ranking of uses then installment loans for furniture and electronics. 17 percent of all installment loans are used for these goods. Car buyers often take out a loan, especially for a new car. 31 percent of all completed installment loans are earmarked for the purchase of a new car. The loan amount taken amounts to an average of 19,000 euros. Just behind it are loans for used cars. 28 percent of all installment loans are planned for this purpose. The loan amount here is on average 11,000 euros.

Comparison is worthwhile

Even with car loans worth a thorough comparison, because the conditions are often very different. In addition, car buyers can make loans directly in the dealership, online or at their house bank. The number of eligible providers is thus very large. In order to benefit from discounts when buying a car, it may be useful when buying a car to first learn the total including all discounts and start with this sum in mind then a detailed search for the cheapest loan.

The forms of financing vary as well. Among other things, there are leasing offers and balloon financing. Balloon financing is often associated with high fees and special repayments are not possible in many cases. Often, borrowers are advised to choose financing that will allow them to be as flexible as possible. The change in the rate should be as possible as a special repayment.

Are interest rates low?

Are interest rates low?

Interest rates in Europe have been at a very low level for several years now. Since March 2016, the ECB has kept its key interest rate at zero percent. The deposit rate for banks is even minus 0.40 percent. Added to this are bond purchases by the central bank, which are to be continued until the end of the year. The ECB’s actions aim to support the eurozone economy.

Companies should get more easily on loans and thus have the opportunity to invest larger sums of money (also interesting: Compeon experiences ). This creates new jobs as a result. Private individuals also receive loans on favorable terms. By contrast, savers receive hardly any interest, for example on overnight money accounts. Individuals should also be encouraged to invest in this way. For example, real estate loans are currently very cheap. Also on this way the economy should receive a boost. In the short term, the situation should not change. Only from autumn 2019 could the ECB initiate the turnaround. Then it can then gradually come to higher interest rates.

Interest on consumer loans low

Interest on consumer loans low

Even with consumer loans, borrowers can look forward to low interest rates. Some credit comparison portals even work with negative interest rates, but usually for loans with small loan amounts up to 1,000 euros. Here customers do not have to repay the full loan amount and can save some Euros in this way. Anyone who wants to take out a loan and makes a loan comparison on the Internet will find that many providers currently offer very favorable terms.

FMH Finanzberatung recently compared several loan offers. It examined credit-based loans for customers with a very good credit rating and credit-independent loans. In the latter case, the borrower pays a fixed interest rate and thus has good control over his monthly installments.

However, such loans are not given by banks to all customers. Credit-based loans are awarded far more frequently. However, customers with a lower credit rating generally pay higher interest rates than customers with top credit ratings. Customers with a good credit rating usually have a very good selection of particularly favorable offers. However, the cost of a loan is also determined by the duration and the amount borrowed.

Low monthly rates often mean longer term

If you want to pay a very low monthly rate, you should opt for a long term. However, this can be shortened by special repayments. For example, if there is money left over at run time after a tax refund, you can put it into the repayment of your loan.

An installment loan can also be helpful in overcoming a short-term financial bottleneck. The terms for a installment loan are often more advantageous than for credit facilities. An installment loan can therefore also be used to pay off an expensive credit line. FMH Financial Advisers came to the conclusion that bank customers currently have to pay an average of 9.28 percent interest when overdrawn.

Decision for an installment loan

Decision for an installment loan

Anyone who thinks about taking up a installment loan should first think about the amount of credit needed. One should also consider which sum is most compatible with one’s own financial situation. Then the term becomes the topic. From interest and duration then the amount of the monthly rate. For a short term, the monthly rate is usually higher. Those who opt for a longer term, but takes a higher interest charge in purchase.

Many borrowers already have to pay off other loans. Therefore, it may be useful to bundle these into a loan. This gives you a better overview and simplifies the repayment. In addition, a new loan in the current low-interest-rate phase can prove to be a decisive advantage.

Credit rating important for interest calculation

The amount of interest on a loan is usually determined by the creditworthiness of the borrower. Therefore, it may be useful to take some steps before borrowing. Among other things, every citizen can receive free self-assessment once a year at the Private credit. Here you will learn his Private credit score. A contribution to improving this rating may be to cancel bank accounts and credit cards that are no longer needed, as these will also be listed at Private credit.

Incidentally, it also has a negative impact on the Private credit rating, if you make several loan requests. Therefore, a comparison of different loans via an online comparison portal is also useful for this reason. This is not included in the Private credit rating. In addition, the credit conditions here are often even cheaper than at banks on the ground.

Purpose can influence conditions

The purpose can also play a role in the loan terms. Who wants to buy a new car and wants to take a installment loan, should specify this in the loan application. Banks then value the new car as collateral in this case. So lower costs may be possible. The conclusion of a loan can be revoked within 14 days. This deadline was set by the legislator. However, some banks even offer a 30-day right of withdrawal. Special repayments can also help to terminate a loan early.

Compare Cheap Installment Loans: Compare Top Deals

How does our online loan comparison work?

We gives information around the topic of online loans. Numerous providers, numerous loans: One has the known agony of choice. The problem: Counseling by the house bank is not always independent. We inform about the online installment loan – the best guidebook for an individual credit profile. Find the best terms and the cheapest installment loan for your needs.

Take some time, because you should know exactly what it is, before you make an online installment loan. We inform comprehensively: Which requirements must be met by cheap installment loans? What are quality characteristics? Online installment loans in comparison: Which online installment loan makes sense for whom? Which providers are recommended? We have tested and give you an overview of the offer – only then can you make the best decision.

How does our online loan comparison work?

You do not have to be inhibited if you want to use our website. It is quite simple: You just have to specify what loan amount you are looking for, the term and purpose are also important. In this case, it is about a installment loan.

A installment loan is a loan that is repaid in installments at a predetermined interest rate. The interest rates are usually set individually. Their amount depends on the size of the loan and the creditworthiness of the borrower. Generally speaking, the lower the amount and the more installments are agreed, the higher the interest rate will be.

Cheap Online Installment Loans: The search is not difficult!

Cheap Online Installment Loans: The search is not difficult!

First, it is easy to understand: a installment loan is a standardized product of banks for private customers. As a rule, the two parties agree on a monthly installment, the term of a loan varies. The borrowed amount and the interest and fees of the credit institution must be repaid within the specified time. A installment loan is usually awarded for sums between 1,000, – to 75,000, – €. For smaller or larger sums, banks usually offer other types of loans.

There are numerous offers that you will come across as soon as you search the internet. To find a cheap installment loan online whose quality you can count on, you should take some advice. With our installment credit comparison, however, the selection will not be difficult for you.

Seriousness in the test: The quality of installment loans

 The biggest concern of most borrowers is that you could fall for dubious providers and blindly fall into a debt trap that makes them hard to get rid of. The fear is not entirely unjustified, especially as in this area many fraud attempts are made to exploit the situation of a borrower.

That’s why it’s even more important for you to be well informed in order to actually assess the seriousness of a cheap online installment loan. We have put together the five decisive quality features for you:

  • The bank does not charge any hidden fees, which are hidden in the fine print. Get help if you are not sure and present the loan contract to a specialist or a specialist. Even the consumer centers offer a good and free service, should you have any doubts.
  • No usury! The average interest rate is about 6 percent, from 10 percent APR, the rate is well above the average. Cheap online installment loans you get from 3 percent.
  • Special repayments are possible. Of course, a good lender will allow free reimbursement in addition to the agreed rates, even if it reduces the term.
  • No processing fees. In addition to the above fees for additional insurance, banks are not allowed to charge processing fees on the credit opening.
  • Transparency through interest rate-independent interest rates. Non-credit-linked interest rates, which enable even low-income clients to take out loans, are still not very common. We rate credit-independent interest rates not just for social reasons, but also because of the associated transparency as a quality feature. The APRs can be compared in this way since interest rates are not individualized.

The comparison: is a installment loan useful for you?

There are numerous loan options: home savings loans, lightning loans, auto loans and many more. Whether an online installment loan makes sense for you, is our short test. Just answer the following questions:

  • Are you looking for financing up to a maximum of 75,000 euros?
  • You want to make a short-term purchase? Or have a financial emergency, because a device, the car or other broken?
  • Do you have regular income?
  • The agreed rate is to be paid by you? You have set up a good financing plan?
  • The burden of the loan can be estimated for you over the entire term? You have included the costs in your private plans?
  • Have you been blinded by a cheap installment loan offer and have not objectively compared all the terms?

Can you answer most questions with “yes”: An installment loan sounds like the best solution. Did you answer most questions with “No”: A installment loan should not be envisaged. If your answers are balanced, look for independent advice that will help you.

5 questions: You should know that!

5 questions: You should know that!

1. What collateral must be deposited?

 As a rule, no special securities are needed. However, you must have a Private credit information available and possibly also payroll. In any case, after completing the online installment loan, a message will be sent to the Private credit.

If your credit rating does not satisfy the lender, then additional collateral will be required: A guarantee would be a possible option here. However, the requirements differ from bank to bank in the end.

2. How is the repayment done?

The term of an online installment loan is up to a maximum of 84 months (7 years), in exceptional cases up to 120 months (10 years). The amount of the monthly installment depends on the amount borrowed, the interest accrued and the fees that may be added – depending on the institution.

Attention to the fees! Since 2004, processing fees are no longer allowed! Until then, many banks have demanded a processing fee of 2 to 3.5 percent of the loan amount, which has been banned by the BGH, however.

Additional fees may apply for a so-called residual debt insurance. Some banks insist on taking out such insurance, which intervenes in the event of death, illness or unemployment, to pay off the remainder of the debt. The costs incurred by the insurance must be paid by the borrower.

Beware of the hidden costs that may come your way!

 The general conditions that banks initially name are always adjusted individually. An additional residual debt insurance can be very expensive. However, if you do get involved, be sure to take out fair insurance. It is highly recommended to read the fine print carefully. For many policies, the insurance only comes into effect after a waiting period of up to six months. You can also expect unpleasant surprises when it comes to the benefit period: it is often limited to just 12 months.

3. What interest do you need to expect?

In general, it can be said that even a cheap online installment loan demands higher interest rates than mortgage lending. Our installment loan comparison with discretionary loans again shows that the interest rates are much lower with a favorable installment loan.

Exact numbers are difficult to name, as most interest rates are set individually. The amount of interest depends on the amount of the loan and the creditworthiness of the borrower. We tested the best online installment loans in comparison.

As a rule of thumb, you can remember: the lower the amount and the more installments are agreed, the higher the interest rate will be. The financing of an installment loan is so very expensive in such a case. It is advisable to arrange as few installments and a short term as possible in order to reduce the costs.

4. Can I terminate an online installment loan?

There are two ways to resolve an installment loan:

  • Customers have a right of objection of 14 days. The consequence of this is: The loan amount must be repaid immediately.
  • A installment loan can also be terminated. Borrowers can always withdraw from the loan agreement since 2010 without any notice period. However, in such cases, banks may require a prepayment penalty. However, the amount of the compensation is not arbitrary, but has been specified by the legislator. For loans with a maturity of more than 12 months, the maximum is 1.0 percent. For loans with a maturity of less than 12 months, no more than 0.5 percent of the remaining debt is permitted as compensation.

The exact legal requirements can be found in the BGB: Termination of installment loans in paragraph 489 and the contradiction in paragraph 495.

5. Can the bank cancel the customer?

Do not worry, as long as you comply with all the obligations you have entered into with the loan agreement, a termination by the credit bank is not possible. The requirements are:

  • At least two consecutive installments must not have been paid in whole or in part.
  • There must be three reminders that meet a two-week deadline. In the third reminder, a loan termination must have been threatened.

The current situation: the top 3 in the market

The current situation: the top 3 in the market

 Now you should have an overview of what you should know about an online installment loan and what you have to consider before signing a contract. But one question still exists: Which good providers are currently on the market?

We have put together the best installment loan offers at a glance:

The Alibank: top mark!

The Alibank offers an excellent online installment credit, which can fulfill all our quality features: The online installment loan is offered without residual debt insurance, the interest rate is cheap and fair and does not depend on the creditworthiness of the borrower. The award was given to Focus Money as “Best Installment Loan” and the Alibank as “Fairest Direct Bank” in 2014.

  • 4.45% eff. Interest pa
  • 4.36% debit interest pa

The DKB Loan Calculator

Survey the situation with the Alibank Loan Calculator

SKG Bank: very good offer!

Closely followed is the Alibank offer for favorable installment loans in comparison with SKG Bank : also highly recommended and of the highest quality. SKG does not charge processing fees, special repayments and early repayment are free of charge. In addition, a good rate protection insurance can be completed, which not only costs, but offers an actual protection for the insured. An interest-rate-independent rate also convinces here.

  • 4.50% eff. Interest pa
  • 4.41% debit interest pa

Everything in the overview: The loan application at the SKG

Alibank: Excellent for middle earners!

The only drawback of the installment loan offer at Alibank: Interest rates are calculated individually and are not independent of credit rating. The benefits are all the greater: there are no processing fees, special repayments or early repayments are free of charge, as well as a rescheduling or replacement of existing liabilities. Very good offer for anyone who can present a salary certificate with a good income.

  • 2/3 of all customers receive: 4,79% eff. Interest pa
  • 4.69% debit interest pa

Calculate the desired loan at Alibank

The top providers for cheap online installment credits in comparison: Alibank takes first place with interest-rate-independent interest rates and best terms, closely followed by SKG with a slightly higher APR. For income-secure customers, Alibank is a very good recommendation with favorable interest rates and the possibility of free special repayment.

How do installment loans develop in the future?

Of course, the future of the installment loan is difficult to estimate. Above all, our installment credit comparison has shown that it is important to recognize hidden costs. Good providers are characterized by transparency of fees and fair conditions. This market model will presumably become more and more prevalent through selection by consumer demand. Interest rates are difficult to predict as they depend on many factors. It remains exciting!

5 tips and tricks for dealing with the installment loan

5 tips and tricks for dealing with the installment loan

When you take out a loan, you are in debt and make certain commitments. You have to learn a good way to handle it. Here are tips and tricks to help you manage your debts in the best possible way.

1. Pay attention to free special repayment!

If the provider does not allow this possibility, it is worth looking for alternatives!

2. Check the residual debt insurance!

Convince yourself that the insurance makes sense for you and does not turn out financially to your disadvantage!

3. Pay attention to credit-independent interest!

This is especially true if you are not among the better earners.

4. Create a realistic installment plan!

Be sure that you can bear the financial burden and oversee in the longer term.

5. Use credit comparison!

To make a wise decision for the right online installment loan, you should not rush – but to inform!

Instant loan despite negative private credit – The best provider?

Within days, the express credit is ready

Once an invoice is not paid or a rate is not paid and already there is a negative entry in the Private credit.

Sometimes it can be quick, but free instant loans are an alternative to a temporary liquidity problem.

  • Fast payout without Private credit query
  • Ideal for borrowers with negative Private credit
  • Even small loans possible

Which possibilities for the instant loan despite negative Private credit offer themselves?

There are many different options online to apply for credit even with a bad credit rating. In our test, we took the individual providers under the microscope and awarded the test winner.

Loans from private to private with creditend or moneyor

Private borrowers who need a small cash injection as quickly as possible can call on the P2P intermediaries. Suppliers such as creditend and moneyor provide a platform for investors and borrowers who can come together here.

The advantages of P2P providers:

  • The money is paid out quickly
  • Private credit query is often not performed
  • Amount of the amounts is variable

The disadvantages of P2P providers:

  • No guarantee for a loan commitment
  • Partly quite high interest rates
  • Partial indication of collateral necessary

At auxmoney, loans are brokered from private to private

Microcredits: for the short bridge

If the money is already all, but the month is still a few days, there may be bottlenecks. These can be bridged, for example, by a microcredit. Vexcash or Xpresskredit offer fast microcredits and waive this part of a positive Private credit.

The advantages of microcredit:

  • Excellent for short-term bridging
  • Terms very low
  • Payout is fast

The disadvantages of microcredit:

  • Only small amounts between 500 and 3,000 euros possible
  • Repayment must be made quickly
  • Interest rates can sometimes be high

The concept of online pawnshop:

The online pawn shops are also very successful. iPfand is the most popular platform and offers the opportunity to store valuables. Again, the payment is made without a view of the Private credit.

The advantages of online pawnshops:

  • Valuables can be transferred for money
  • Fast bridging of money problems
  • Fast triggering possible

The disadvantages of online pawnshops:

  • High interest rates on the loans
  • If payment can not be made, the valuable item becomes the property of the pawnshop
  • Not all valuables are accepted

Our test winner: Private credit-free instant loan with Maxcredit

In addition to the alternatives to a loan without Private credit mentioned here, there are also direct intermediaries for an instant loan despite negative Private credit, such as Bon-Kredit and Maxcredit. In our test, the supplier Maxcredit was particularly convincing. The request for a loan is here completely free of charge and without obligation. In addition, the request is made within a few minutes. The payment is made in the case of a commitment directly and in the amount of 100 percent.

The fast processing speaks for itself. Maxcredit’s requests are also processed over the weekend or even on public holidays. This is especially beneficial when money is needed very quickly. The provider’s annual percentage rate ranges from 5.29 to 15.95 percent. Even if interest rates can go relatively high, there is also the possibility of receiving low interest rates. The offered interest rates are fixed here for the entire term, so they do not change. The contract periods range from 12 to 120 months and are therefore also very flexible. The loans without Private credit are mediated with amounts between 3,500 and 7,500 euros and are thus quite high. This Maxcredit scores with a very successful overall concept, which is quite a good way to get even with a negative Private credit a loan.

Maxda can score with a multitude of advantages

Conclusion:

There are several options for an instant loan even with negative Private credit. Maxcredit scores with a combination of fast processing, fair interest rates and flexible repayment. The request for a loan is not only completely free but also absolutely non-binding.

Fast loan for small businesses without a house bank!

Credit for small businesses: thanks to Financial Technologies alternatives to conventional bank loans!

Urgently sought: Credit for small businesses, as an alternative to the house bank! In fact, the self-employed, small businesses, freelancers and tradesmen are often desperately looking for a short-term, fast financing solution to bridge a funding gap in the sense of a bridging loan.

Open payments, unexpected repairs, or unexpected back payments are just a few of the many reasons that can lead small businesses and the self-employed to financial hardship. A classic bank loan could help, but since the introduction of Basel III lending rules, this has become very difficult for small businesses.

Add to that, that one would like to stress the laboriously built up trust with the house bank only with short-term loan inquiries. In most cases, the house bank is not the right contact for short-term financing problems.

Financial Technologies company focused on short-term loan solutions and bridging finance

 

The primary financing needs of small businesses and the self-employed are short-term. Here unbureaucratic and uncomplicated solutions are required. However, conventional banks (including the house bank) usually run a business model that is geared to long-term loans (installment loans). They are thus hardly able to respond to short-term financing problems of their customers.

Our short-term loan solutions are the two Financial Technologies companies financinga and inancingent.

financinga for short-term loan for small businesses and the self-employed

financinga for short-term loan for small businesses and the self-employed

The Financial Technologies company financinga specializes in fast, short-term loan solutions of up to € 100,000 and maturities of up to 12 months. Its innovative credit-worthiness analysis technology allows fast credit decisions within hours!

With the financinga online platform, self-employed people and SMEs can apply for loans in just a few minutes, for example, to buy goods, settle unexpected bills or secure growth. Thus, the financinga loan offer is ideally suited for short-term financing solutions as bridge financing, bridging loan and for problem solving of unforeseen financing bottlenecks or liquidity gaps.

The Financial Technologies company financinga has been a test winner for short-term loan solutions for small companies, self-employed and business people for months!

inancingent for short-term loan for small businesses, self-employed and medium-sized companies

inancingent for short-term loan for small businesses, self-employed and medium-sized companies

The Financial Technologies company inancingent is known for its bank-independent and cross-product financing solutions for the self-employed, tradesmen and medium-sized companies. inancingent now offers short-term credit solutions for Employment Credit with special conditions!

With the Employment Credit, a loan solution is offered, which can be adapted quickly, comfortably and flexibly to the financing plans. From 10,000 euros, financing with a duration of between six and 60 months is possible. The loan amount can be taken up as low as 2.7 percent nominal interest without the need for collateral. The Employment Credit as a quick loan for small businesses, the self-employed and SMEs is suitable for all those who simply need a classic loan.

With the Employment Credit, customers can receive a loan commitment of more than € 100,000 within just 24 hours, with a maximum of € 750,000 within 48 hours 

For those in need of more complex financing, inancingent continues to provide expert and product independent expert advice on all financing products. See also:
SME tip: With one request, access to 220 financial partners and 1,700 subsidies!

Further tips for creditors for small businesses and the self-employed…

    1. Our advice: First study the credit requirements, and then submit the application! This saves unnecessary frustration and false hopes.
    2. Fresh capital through money from the state through state subsidy programs. More at: Subsidies for the self-employed, traders and SMEs
    3. The time-consuming search for funding does not have to be: Access to 220 financing offers and 1,700 funding programs with just one online request? Yes, that is possible! More at: SME tip: With one request access to 220 financial partners and 1,700 funding!
    4. With the financial portal inancingent the credit chances increase by 100%! Another advantage: you save 30% interest! More: SME tip: 100% higher credit chances and 30% interest savings!
    5. With inancingent you can choose from 220 finance partners for commercial real estate financing!
    6. Offers for credit for small businesses of different providers may be relatively different. Therefore: Always catch up on multiple offers and compare: With the credit formula can save up to 40% interest!
    7. Often forgotten: A financially strong guarantor always increases the chances of getting a loan (including cheaper credit terms).
    8. With small business loans, credit insurance can be helpful as extra security!
    9. In addition to a guarantee or credit insurance, there are other securities that increase the chances of a loan for small companies.

Everything else is found in our practice guide loans for small businesses and the self-employed.