Use our credit tips
Loan agreements usually close consumers for a longer period of time. This is then associated with a financial obligation, which represents an additional burden.
So that the credit is not the way into the debt trap, we give you ten important credit tips that are useful in advance and help you in finding the cheapest possible loan.
Get information in advance. If you intend to take out a loan, it is helpful to look at the various options for financing beforehand. This way, errors with serious consequences can be avoided. It makes a difference whether the collection is used, an installment loan is taken or existing loans are summarized.
To assess the financial possibilities correctly. Even before a loan application is made to a bank, its own options should be clearly defined. How much rate can you afford? What is the disposable income? How high may the rate be? A rule of thumb is that the monthly installment charge should never exceed 15 percent of net income.
The offers of different banks can be compared. The cost of borrowing may differ significantly for one and the same loan amount. A free credit comparison provides information and helps to save several hundred euros.
When comparing loans, pay attention to the APR. Only the effective interest rate includes all borrowing costs that are due to the borrower. In addition to the cost of interest, the bank may also charge fees for processing and account management. Also, deployment costs are possible if it is a mortgage. If a comparison of different offers is made, the base, ie loan amount and term should always be the same.
Look at private credit intermediaries with skepticism. When banks struggle with lending, the offers of credit intermediaries are usually obvious. But be careful here. For credit intermediaries who occasionally promise “the blue sky”, only consumers who are creditworthy get credit. In addition to the interest and fees, the borrower also has to pay agency fees, which make the loan even more expensive.
Loans without credit bureau are to be treated with caution. Here, there are pitfalls for unsuspecting consumers that you should know before applying for a non-fictitious credit.
For loans without credit bureau, only use offers in which the intermediary does not charge any advance costs. It does not necessarily have to turn around a fixed amount in euros. It is also unserious if agents can only be reached via expensive telephone hotlines or fax calls. Also, documents that are delivered by cash on delivery, are usually worthless.
If an additional fee has to be paid, such as the agency fee, this may only be charged if the loan is successfully arranged. The creation and transmission of offers, however, should always be free and without obligation.
Paid credit hotlines are only intended to keep consumers on the phone line for a long time and thus rip off over the resulting telephone charges. The same applies to fax calls, even those can be an expensive affair for loan seekers.
Do not sign any contracts blank. Always make sure that the contract documents submitted to you for signature are complete and correctly filled out. In your own interest, also read the fine print and have a copy of the contract handed to you.
If necessary, make use of your right of withdrawal. If you have already completed a loan and signed the contract, you may withdraw from the contract if you find the decision was incorrect. After delivery of the cancellation policy, borrowers have two weeks time. Anyone who has not been instructed by the lender about his right of withdrawal can always revoke it without a deadline.
If you follow one or the other tip we give you here on the way, you will not be ripped off when taking credit and moreover avoid falling into the debt trap.