What is the right loan?
This cannot be answered generally, but primarily depends on the amount of credit required, the type of purchase and the financial options. The first step should be to define the purpose for which the loan amount is needed. Then the amount of the loan should be determined and the monthly installments should be calculated using a comparison calculator. More of this story: aeoid.com
What are the requirements for taking out a loan?
The bank may be able to check a large number of criteria before a loan is approved. The basic prerequisites are, however, majority of majority, a regular income and a current and historically good credit rating.
How do you get a loan?
In the first step you have to obtain a loan offer from a bank or compare the conditions online using a comparison calculator. If the desired conditions match, the loan is applied for and the bank checks the creditworthiness during the application process. If the result is positive, the application is submitted to the bank. Depending on the amount of the loan, it is checked again manually by a specialist. At the same time, the proof of salary and the original application must usually be sent to the bank. When all documents are available and the bank has accepted the application, the payment is made immediately.
Why does the employer have to be specified?
The reason for the demand for the employer in the loan application is that the bank can request a garnishment if the installment is not paid through the employer. However, if everything goes according to plan, the employer will of course not be informed and will not be contacted.
Can a loan request also be rejected?
Yes, if a loan request is rejected, this can have different causes and often the bank does not provide any details. In most cases, however, the reason is the lack of creditworthiness, which has been confirmed by Credit Bureau, or the lack of financial collateral.
Can the money be used freely?
If no specific purpose has been agreed in the loan agreement, the loan can be used freely. It would be different, for example, with a car loan. This may only be used to purchase a car.
Can a loan be redeemed early?
In principle, this is possible, but it must be agreed in writing in the loan agreement. In most comparison calculators, this can be specified as a criterion.
What is the advantage of a second borrower?
Using a second borrower in the application significantly increases the chances of getting the loan because the risk of the bank is now divided into 2 people.
What role does Credit Bureau play in a loan?
Before banks approve a loan, the applicant’s creditworthiness is checked with Credit Bureau and saved as a loan request in Credit Bureau. If the credit agreement is subsequently concluded, Credit Bureau receives a further report, in which the credit information such as the institution, the start and the loan amount are reported to Credit Bureau and recorded in the database. If the installment payments should fail and the bank therefore terminate the loan and make it due, a message is sent to Credit Bureau with the information Account in progress. This is a very strong negative. Getting more loans is almost impossible until the entry is deleted.