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When it comes to financing, interest is of course above all relevant, because the other ancillary credit costs such as possible commissions or fees for brokering or account management fees, if charged, are rather marginal – high interest rates, on the other hand, make a loan extremely expensive and thus burden the debtor financially. It is therefore important to pay attention to low interest rates when choosing the right loan.

Creditworthiness of the borrower

However, interest is always from the creditworthiness of the borrower – if a bank advertises low interest rates, one often reads the word “ab” next to the effective annual interest rate – this simply means that the advertised interest rate with a very good or excellent creditworthiness of the borrower applies.

The worse the credit rating, the further the interest rates rise – for one simple reason: the bank tries to mitigate the risk of not getting all or all of the money back. If the borrower fails after a third of the term, the bank has been able to collect more money due to the higher interest rates than with a lower interest rate, so the loss is minimized.

Credit comparison for credit rating

A credit comparison now usually assumes a “normal” credit rating, if not a very good credit rating. Therefore, choose a loan comparison calculator where you can enter your monthly income and basic costs, otherwise you will not receive any figures that actually give you a clue.

In principle, the banks make it easier for employees to find favorable interest rates on loans than the self-employed, because a regular and fixed income always gives the banks security – for entrepreneurs, income can vary depending on the order situation or business activity, for example, some are dependent on a certain season, fluctuate extremely.

If you stumble across an offer that appears to you to be cheap, you should still go to your house bank and express your financing request there. It is important that you do not receive a binding offer, but only a non-binding offer – or even better, expressly say that you only want to be informed. Then compare the conditions of your house bank with the conditions of other banks and savings banks.

If an expensive car repair is due, if the washing machine is broken or if the account is badly overdrawn, a loan can be the ideal solution. If the borrower has a good credit rating, it is easily possible to take out an instant loan on favorable terms. In advertising, a loan with immediate approval is often recommended as the means of choice, which can be applied for without great effort and does not involve any risks. When taking out loans, you should always keep in mind that this is a financial obligation that you must meet. If you have a regular income and you have good creditworthiness, there is nothing standing in the way of an instantly approved loan. But how does this popular financing work in practice?

At the beginning there is the credit check

Before you apply for an instant loan, you should compare your monthly income and expenses and check what your maximum credit rate can be. It is best to compare your monthly disposable income with your regular expenses. In addition to your salary, income also includes rental income, maintenance or other regular deposits that you receive as a borrower. Then list the expenses. These include rent, ongoing loan and loan installments, insurance premiums, car costs and living expenses. From this comparison, you can see how much leeway you have for your loan installment per month. The financing bank will make the same calculation and also base its conditions on your creditworthiness. You also need to be sure that you have the money to repay your loan reliably over a long period of time.

After comparing the income and expenses, take a look at your Credit Bureau or the entries in the Credit Protection Association (KSV). If there are entries that indicate a poor credit rating, the banks can reject your loan. It is therefore helpful that you know the data stored there before you make your loan request. If your creditworthiness is in order, make a credit comparison in the next step. To do this, use a loan calculator on the Internet.

How to do a loan comparison

At present (12/2016), interest on loans remains at a low level. Every bank tries to win customers and relies on flexible conditions and low interest rates for the installment loan. If your Credit Bureau (KSV) is in order, the entire spectrum of the best banks is available for your financing. If you check the conditions for your loan, you can use a loan calculator. Here, as the borrower, you enter the desired loan amount and the term. The longer you take the time to repay, the lower the rate on your loan. Pay attention to the purpose of your loan. If you want to use it flexibly, you should not specify any purpose for the financing bank. A classic installment loan is not tied to a purpose, you can use the borrowed money freely. The calculator uses the loan amount and the term to determine all banks from which you can apply for loans with your specified conditions.

Everything at a glance in the online calculator

The direct comparison offers you several advantages. If you use an online calculator, you can carry out the comparison flexibly if you have time. You do not have to wait for an appointment at a bank, because you make the financing comparison on your home computer. The online calculator uses your data for the loan to create an overview that lists each bank that finances your loan. The overview shows the amount of the installments in USD that you pay for your loan each month. The best providers identify you with reviews from satisfied customers. In many online computers, good providers are marked with stars so that you can easily recognize them.

Of course, you can also find the interest in the online comparison. Orientate yourself to the effective interest rate, which contains the most important costs for your loan and is a good guide in comparison. Even if interest rates are currently low (12/2016), a small difference makes a significant difference in the repayment. In the case of loans with a large amount, even small deviations in interest rates can be observed.

An important criterion for your decision is the time it takes the bank to process your application. Some installment loans are offered as a loan with immediate approval. The advantages of this option are obvious: You will be informed at short notice whether your instant loan will be approved and you can apply for your cheap online loan of the desired amount directly from the computer. The instant-approval loan is therefore ideal for customers who urgently need money. From the overview of the banks, you can easily see which providers are offering a cheap online loan with immediate approval that fits your desired loan amount and duration.

How to apply for an instant loan

In order for you to have the money you need in the account quickly, you should look for loans with an instant commitment and know how this financing works. There is usually a program behind the immediate approval that checks your creditworthiness based on your input. So be careful when specifying your income in USD and with all other required data. The program now determines whether you can pay the installments for your loan in USD. If this is the case, you will receive an immediate confirmation.

At most banks, you have to provide proof of your details. If you provide all the required documents and your stored data in the Credit Bureau or KSV is in order, you can apply for the loan online immediately and trust the low interest rates. After checking your documents, the bank will confirm the conditions and pay the money in USD. Until the final check by the lender, there is still the possibility that your request will be rejected. This means that loans with instant approval are financing with many advantages, such as fast payment and optimal comparability. Nevertheless, even with these loans, the bank will only approve the loan application if it can be sure that you will reliably repay the borrowed money in USD within the agreed term.

Where can you compare online loans?

Online loans are offered by conventional banks as well as direct banks on the Internet. Online banks generally offer better credit terms because they do not have to maintain as extensive a branch network as traditional credit institutions and carry out a standardized credit check. Portals, which mostly act as credit intermediaries, make it easier to compare online offers. They are usually equipped with a loan calculator, which the applicant can use to calculate how much credit he can afford. The desired amount, the desired term and, if applicable, the purpose of use must then be entered so that the comparison portal displays the best interest offers.

The loan comparison itself initially remains completely anonymous and is free of charge. Comparison portals are useful because they offer a sufficient overview of the credit market, always offer current offers and immediately submit the loan request to the lender or forward the user to their website. Nevertheless, it is advisable to use several portals to compare as many offers as possible. Sometimes portals offer installment loans with exclusive interest that are not available from the bank or other platforms.

Every cent saved on the loan repayment goes to your wallet. The longer the term of the loan, the lower the monthly charge for the borrower. However, this leads to an overall higher repayment sum. You can also use an internet comparison offer to negotiate wisely with your house bank about a discount. Because in Austria, the interest rates of classic credit institutions and online banks sometimes differ enormously. At many banks, borrowers can choose between fixed or variable interest rates for the entire term.

What should you watch out for when comparing loans?

• Loan offers without a credit check or against payment of upfront fees are usually dubious.
• The monthly installment and the total amount of the repayment are to be compared.
• Only effective interest rates should be compared. The effective interest rate includes all costs and ancillary costs of the loan, including credit residual debt insurance.
• Interest rates dependent on creditworthiness and independent of creditworthiness are not comparable. If conditions are not tied to creditworthiness, the interest rate applies to all approved applications. Interest rates that depend on the applicant’s creditworthiness are only shown as a representative example in consumer protection in the credit comparison.
• Only those who have a credit rating that is beyond any doubt will receive the lowest interest. It is therefore necessary that you always obtain an individual loan offer.

What is the procedure for online loans with immediate approval?

Once the suitable loan has been found, the interested party must enter their personal data and information on income and expenses as the basis for the loan request. The processing of the loan application is particularly quick at the banks, which immediately carry out authentication via webcam. For all other applications, the future borrower must use the PostIdent procedure to authenticate himself in an Austrian post office or in a branch of his bank.

In order to receive a loan in Austria, applicants must be of legal age and their main place of residence in Austria. Banks do not require any special collateral for consumer loans, normally the regular monthly income that is to be transferred to the credit institution is sufficient. The employment relationship should be permanent and exist for at least six months. It is conducive to the approval of the loan if the borrower has as little debt as possible and possibly own assets.
Personal data such as name, date of birth, address and amount of income are encrypted and transmitted over the Internet. The identity card or passport with proof of registration serve to legitimize the person. Although it is usually not necessary to disclose the purpose of an online loan, it can be worth it because, for example, there are special interest offers for car loans.

On the basis of the data entered, the bank checks whether the applicant’s creditworthiness is sufficient by asking the KSV or credit agencies such as infoscore. If no negative features such as insolvency proceedings or personal bankruptcy are registered and after deducting all ongoing costs and the credit rate, there is sufficient financial scope to live, the bank gives an immediate commitment for the loan. This takes place within a few minutes. However, it is subject to a final review of all submitted evidence and documents. The bank then sends the loan contract documents to the applicant electronically or by post so that the applicant can accept the non-binding offer.

When will the money be paid out?

The advantage of an immediate acceptance is that the applicant, if he has received it, can already look forward to the planned purchase or vacation. If the documents, including proof of income and bank statements, have been fully signed by the bank, they will begin to pay the loan amount immediately. The fastest financial institutions transfer the loan amount the same day. A little time should be allowed for the provision of the money. On average, only three to five days pass from the first request for an instant loan to the use of the loan amount.

Summary

An online loan with an instant approval is easy to apply for and will be issued within a few working days. The demand on the Internet makes it possible to realize a wide variety of credit requests from the comfort of your own home. Online comparisons ensure favorable conditions and the instant credit gives the applicant the good feeling that he can quickly implement his project.

 

The interest on a loan is subject to constant change as it is continuously adapted to the respective developments in the financial markets. This allows borrowers to benefit from the financial benefits of rescheduling. This means that the old loan will be replaced by a new cheaper loan with a lower interest rate.

What and for whom is debt rescheduling suitable?

In principle, rescheduling a loan is nothing other than repaying it from another bank with a new loan if it has been determined that there are now much more attractive offers. In principle, debt restructuring is suitable for every borrower. It makes sense for normal installment loans, but also for a dedicated loan like a car loan or dealer financing. It is only important that the savings that can be achieved are always checked in advance. When requesting a loan, it should be stated that the existing loan should be rescheduled by a new loan.

The benefits of debt restructuring

After a well-planned debt restructuring, the new loan can leave more money each month. The financial benefits can be significant because the borrower can save interest that has decreased over time. However, all costs incurred with the debt rescheduling such as the processing fees should be considered in advance in order to be able to calculate the total savings accurately. A rescheduling can be very worthwhile, especially for long-term loans with a high loan amount, such as construction finance, in order to reduce the interest burden caused by the debt rescheduling.

Combine multiple loans through a debt restructuring

In the case of several loans that run in parallel, rescheduling is also advisable, because these loans often make the monitoring of liabilities unclear and make it difficult to keep track of them. In this case, the various loans can be replaced by a single loan thanks to debt rescheduling. A loan calculator can find out quickly and easily whether debt rescheduling is worthwhile. This shows how much can be saved through debt restructuring.

 

Financing your own home is always an extremely important issue, because once the house or apartment has been paid off, there is no longer a monthly financial burden, which is payable for a rented apartment or generally for a rented property. In general, consumers have several options to make their dream of owning a home come true – however, not all options are suitable for every customer, and the comparison shows that some banks and savings banks pay unnecessarily.

Full financing without equity

This is an interesting topic for many consumers, since they have no saved capital and, if they want to finance property, full or 110% or 120% financing is necessary. Many banks are already shaking their heads at the cautious question of whether real estate loans without equity are generally possible.

In principle, however, real estate financing without equity is neither riskier for the bank / savings bank nor for the borrower itself than a real estate loan that is granted with equity. This is also how various online credit agencies. The creditworthiness of the borrower is decisive, and one must also note that full financing is more expensive in comparison.

Building society contract and building society loan

The home loan savings contract is an option for people who have a fixed construction project but have not yet saved any equity. For a certain period of time, capital is deposited in a pot with other borrowers until you are entitled to receive the credit plus a relatively cheap home loan.

Building savings is a good option for people who need planning security, wait a few more years with their construction project and do not want to buy or build a property directly, so they have enough time to go through the savings phase in building savings in peace and quiet.

The so-called rent purchase is always an issue – you move into the property during the contract period and pay a monthly rate, which is usually higher than the local rent. The property remains in the hands of the seller until the end of the term, and the property only changes hands once the high final rate has been paid.

 As an independent banking partner, we offer our customers the best credit programs from all leading banks.

We would like to continue to grow and expand our credit departments. Of course, you will be individually trained by experienced colleagues so that you can use the multitude of our cross-bank options in your loan processing in a meaningful way. You can expect a varied, responsible job, which is rewarded with a solid fixed salary and a success-oriented bonus.

Loan officer or bank clerk 

Your tasks:

• Depending on your qualifications, work in the personal loan department or mortgage lending department
• As a personal loan expert, you independently process our customers’ online loan inquiries, by telephone and by email
• They verify the information and examine the various options for an optimal loan offer
• You choose the best credit solutions for your customers and support them until payment is made

Your profile:

• Bank training and / or professional experience in the area of ​​processing personal loans and / or real estate financing
• Good PC skills (MS Office)
• Independent, committed and reliable way of working as well as absolute discretion
• You are motivated and determined
• A friendly, customer-oriented demeanor and good communication skills round off your profile

We offer:

• Permanent full-time employment (40 hours / week during business hours Mon-Fri 8.30 a.m. to 7 p.m.)
• Internal training in the areas of credit such as personal loans, home finance, corporate loans
• Nice central location in Berlin Prenzlauer Berg with free coffee, cappuccino, espresso, tea and mineral water

What makes us different:

We not only offer you flat hierarchies and a lot of design freedom, but also the opportunity to quickly take on responsibility in a small, friendly team. As part of our mediation activity, we cooperate with all major financial institutions. We cover the entire spectrum of the financing market and enable you to gain professional experience in all financing areas.

If we have piqued your interest, we look forward to receiving your informative application documents (cover letter, curriculum vitae and certificates) by email stating your salary expectations and your earliest possible starting date.

Credit conditions for consumer loans

In accordance with §6a PAngV (creditworthiness required): Net loan amounts: 1,000 to 300,000 USD; Contract terms: 12 to 240 months; eff. Annual interest rate: 1.93% – 15.99% (depending on creditworthiness); Fixed borrowing rate pa from 1.92% Representative example according to §6a PAngV: Net loan amount: 5,000 USD; Contract term: 72 months; Monthly payment: 82.62 USD; Total: 5,948.91 USD; APR: 6.06%; Fixed borrowing rate pa: 5.90%

 

Basically, a loan is taken up quickly – at least if the credit rating is right. A more or less short consultation with the bank, or, what is often faster, an online loan application, and within a few working days the requested money can go into the borrower’s account. But be careful: every year thousands of people register personal bankruptcy in Germany – is borrowing the first step in overindebtedness?

The question of whether you really need a loan should always be seriously considered and answered. This is also linked to a second, possibly more important question: can I afford the loan, can I afford to repay the borrowed amount? For your own safety, everyone should do some kind of credit check before signing a loan agreement. If in doubt, it is the right decision to carry out a budget calculation, i.e. to offset the fixed income with the fixed and movable expenses.

The W questions for a loan

Are you considering applying for a loan? Then ask yourself the typical W questions:

• What I want?
• Why do I want this?
• What loan do I want and after what time do I want to have it repaid?
• What collateral do I have?
• What would be the disadvantages of a loan waiver?

Credit request

If the credit request can still be answered with a clear conscience after answering the above questions honestly, then the next step is due to the obligations of a borrower: the information about different types of loans and types of loans, because not every loan is suitable for everyone Project that is to be financed, and depending on which one type of financing comes cheaper than another.

It is not uncommon for a credit line with an excellent credit rating to be a fairly cheap option to finance certain projects in the medium term.

Think carefully about whether you really need the loan. Exchange ideas with a close relative or a very good friend to get a second opinion. Do not accept the first offer for a loan – carefully compare the terms of the different banks.

Pregnancy, parental leave, birth – when is the best time to apply for a loan? Diapers, cradle, changing table: Especially for the first child, expectant parents have to make many purchases.

If your own savings and the support of relatives and friends are not sufficient, you can take out a loan for the baby equipment. However, there are a few things to consider for a loan during or after pregnancy.

Use the free loan comparison to find the cheapest loan for your baby equipment.

The optimal loan for baby equipment

The initial equipment for the baby can be very expensive. Especially those who are expecting the first child have to buy a lot of new things.

Many things are available used or can be taken over by friends and relatives. Nevertheless, some expenses are incurred by young parents when the child is born. A loan can help to cover the costs.

A loan for baby equipment is usually a conventional, unrestricted consumer loan. Expectant parents can take out this loan with their house bank or another branch bank, or choose an online loan. Some banks advertise particularly favorable loan terms for young parents. Alternatively, installment loans brokered via special online platforms are available.

What are the requirements?

The usual requirements for a consumer loan apply: Anyone applying for a loan must be over 18 years old, usually resident in the country and have a current account.

In order for the loan to be approved, expectant parents must prove their solvency. Banks therefore usually require the last three proof of income and bank statements. The lenders also obtain credit information for the credit check.

When is the best time to apply?

The baby needs children’s furniture, strollers and clothes from birth. Ideally, parents should apply for the baby equipment loan during pregnancy. If both parents are working, there is also a financial advantage from the early loan application: the bank then uses the entire income to calculate the interest rate-dependent. The higher the household income, the lower the interest.

By the way, lenders are not allowed to ask whether there is pregnancy at the time the loan application is made. Borrowers therefore do not have to state that they are expecting a child unless the bank offers special conditions for a family loan.

If the baby bump is already clearly visible, it can be a little trickier in individual cases to get a cheap loan. Banks sometimes see a higher risk of default in pregnancy because part of the household income is lost. Maternity allowance, parental allowance and child benefit are usually not sufficient to replace the mother’s income completely.

Smaller credit = greater opportunities If it is a loan of a few hundred dollars or a low amount in the thousands, the chances of approval are usually good to very good – as long as the loan amount is realistic in relation to the income situation!

As an alternative, it is advisable to submit the loan application online in the event of advanced pregnancy. Another option is to apply for a personal loan. Private lenders are often less interested in creditworthiness, but support young families out of a social concern.
Consider a reserve! Expectant parents should also consider the loss of income after birth when calculating the credit rates. Not only does the baby lose a salary, there are also new, regular expenses. The monthly credit rate must not exceed your own financial means. Include sufficient reserves to cover unplanned expenses during the credit period.

Can the loan also be applied for during maternity leave?

The lender can use the payroll and bank statements to see if pregnant women are already on maternity leave. The banks are now assuming a greater risk of default, since child and parental allowance can usually only cover the cost of living, but not the credit installments. If a loan is approved at all, then usually with relatively high interest rates. It is therefore advisable to apply for the baby equipment loan before entering maternity leave.

Credit during parental leave

Parental leave follows birth. This usually lasts at least one year, and some mothers or fathers stay at home with the baby even longer. The bank cannot predict when both parents will fully return to work. The lower income during parental leave leads to more expensive loans.
Who should apply for the loan?

If both parents work, it makes sense to apply for the loan together. The lender then takes both incomes into account in the household account, which results in a more favorable credit rating, which in turn leads to lower loan interest rates. If only one parent earns, that person should also apply for the loan . However, some banks generally require proof of income from both partners when lending to couples.

With the help of a co-applicant, a loan can also be secured if maternity leave already exists or the borrowers are on parental leave. A secure, high income of the partner lowers the loan interest. Another option is to look for a guarantor for the loan with a low credit rating, for example your own parents or other relatives. Guarantors with a good credit rating also reduce the risk of default and lead to lower interest rates.

Loan for single parents with low income

Lenders assume a particularly high risk of default among single parents with low income. It is correspondingly difficult for single parents to get a loan. A loan is often only granted if a solvent guarantor is found. It is cheaper for single parents to apply for a subsidy or a loan for baby equipment from the social welfare office than a loan from the bank.

If your income is low, there is also a child supplement in addition to child benefit. Those who receive unemployment benefit II receive financial support for the initial baby equipment from the employment agency.

It is advisable to get an overview of your own financial products on a regular basis. With financing, the borrower is usually tied to a contract for a long time. However, interest on loans fluctuates considerably in some cases, so that at times when they are at a low level, it may make sense to replace the previous loan and take advantage of better terms from another bank, so that the entire loan becomes cheaper.

Loan credit – what does that mean exactly?

If you redeem a loan, you take out another loan at another bank on better terms. The borrower therefore pays off the old loan in one go with the loan amount from the new loan and from now on pays the cheaper rates for the new loan. The better conditions make the loan cheaper. It is important, of course, to find out in detail about the conditions and the costs involved before you redeem the old loan. Consumers can pay off almost any loan. Installment or overdraft facilities are often repaid.

The benefits of redeeming your old loan

Repaying the loan is the best way to react to a change in interest rates, as the market is subject to great fluctuations over the years. Due to the early repayment, the borrower secures the better interest rates and there is also the possibility to adjust the monthly rate to the new financial scope, since this too changes frequently over the years. For example, if the financial framework has increased since the loan was taken out, a higher rate leads to a shorter term and thus to a lower overall cost of the loan.

Loan credit – easily and quickly possible

It takes much less effort to redeem the loan early than is often assumed. If a suitable offer has been found, the old bank only needs to be informed in writing of the planned repayment of the loan. The redemption loan can then be taken out. This is often done on the Internet, since a good comparison of the numerous providers is possible online and thus usually much better loans can be found and selected. In the application, the purpose of “replacement” is specified. This tells the bank of the plan to replace the old loan. A comparison that is quick, easy, free of charge and without obligation shows within a few minutes which loan from another bank is cheaper.