Consumer credit: comparison, calculation examples & tips

With a consumer loan, private households finance various consumer goods and everyday services. Due to the frequently agreed purpose, consumers receive particularly favorable conditions in the form of low monthly rates. Who actually writes and advises here? About us

 

This is a consumer loan

consumer loan

A consumer loan is aimed at private households. With the loan amount, they finance, for example, electronic devices, household appliances or other consumer goods as well as services provided by craftsmen.

Consumer loans include both installment and overdraft facilities. In addition, there are financing of department stores with which in-house products can be financed. However, these offers often only refer to specific products (eg special offers).

Compare loans at department stores too When it comes to financing, department stores often only act as intermediaries, so that consumers ultimately receive the financing from a cooperation partner (ie a bank). It is often worthwhile for consumers not only to compare the financing offer with other offers, but also the product price. It may well be that the financing is cheap, but the product price is higher than that of other providers.

 

The advantages

  • Applying for consumer loans is comparatively easy and straightforward.
  • After approval of the loan, borrowers promptly record the incoming payment. So the money is in the account pretty quickly.
  • There is a lot of scope for borrowers: Loan amounts between USD 1,000 and USD 50,000 are often possible with terms between 12 months and 84 months.
  • By repaying in constant monthly installments, borrowers retain optimal cost control (only for installment loans, not for overdraft facilities).
  • For many financial institutions, consumer credit is one of the most important financial products: there are numerous offers on the market at favorable conditions.

 

The disadvantages

  • The use of several consumer loans usually leads to a deterioration in the so-called credit rating, which reflects the creditworthiness. (This applies to all loans.) Consumers who later apply for further financing could therefore have problems. Please also note the corresponding text section further down on this page.
  • The fairly simple application can lead to consumers applying for several consumer loans, which can add up to a considerable financial burden each month. In extreme cases, a debt trap threatens.
  • With overdraft facilities, it is difficult for many consumers to keep an eye on the costs: the use of the overdraft facility is initiated automatically as soon as there is no credit left.

 

How to apply for a consumer loan

apply for a consumer loan

At transparent-beraten.de you apply for a consumer loan in three simple steps.
Take out a loan – it’s that easy!

1. Compare credit

Use the free loan comparison calculator at the top of this page and enter: loan amount, term and purpose. Note: If you decide on a purpose, you have a) good prospects for favorable conditions and b) better chances of getting the loan (if you should be concerned about a problem here).

 

2. Choose a loan

Once you have provided your details, you will be presented with the appropriate loan by email or post, which you can apply for directly.

 

3. Submit documents and wait for payment to arrive

Submit the necessary documents to the bank. Your administrator will tell you which documents are required. You can, for example, have the identity check prescribed by law carried out in a post office.

When you have submitted all the documents and the loan has been approved, you can record the loan amount in your account within a few days. The money is then immediately available. Free and non-binding comparison Please note: The use of the credit comparison is as free and non-binding as the advice provided by the credit advisor. You only incur costs through the loan itself.

 

You need these documents

You need these documents

While the submission of some documents is required by law, banks can decide for other documents whether the documents are necessary for the loan approval. The required documents can therefore vary from bank to bank, but in most cases they are similar.

Often these are:

  • Proof of receipt of salary – Banks are often satisfied with copies of the bank statements showing the receipt of salary for the past three months.
  • Salary Slips – Employees submit a copy of their salary slips for the past three months.
  • Employment contracts or training contracts – A copy of the employment or training contract is usually sufficient here.
  • Tax assessments – People without employment – for example, self-employed – can submit corresponding tax assessments instead of the pay slips. Here too, banks are often satisfied with a simple copy.

If you would like to know which documents are required at which bank before submitting your application, your credit advisor from our cooperation partner smava will provide you with information – free of charge and without obligation.

 

The requirements for a consumer loan

loan requirements

As with the required documents, the banks are also allowed to decide, in part, the standards they want to apply. Some requirements are in turn prescribed by law.

Here, too, the banks often differ only slightly or not at all.

With a consumer loan, applicants must:

  • be of legal age
  • resides in Germany,
  • have a German account,
  • sample regular income,
  • have sufficient creditworthiness.

 

Why a second borrower makes sense

When it comes to the creditworthiness of a borrower, the banks ensure, among other things, that the loan applied for also fits the applicant’s income situation. For example, if you still have several hundred dollars a month after deducting your fixed expenses (rent, groceries, etc.), you are granted a larger loan amount than a consumer who only has over 100 dollars available after deducting your expenses.

The advantage of a second borrower at this point is that the income is taken into account by both people! If, for example, borrower A has 200 dollars per month after deducting his expenses and borrower B also 200 dollars, the available monthly income is 400 dollars. This can be a huge advantage when applying for a larger loan amount.

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