How much credit do I get?

Nowadays it is almost natural to finance a house, a car or other consumer goods with a loan. However, a loan is not a blank check but is only granted if the borrower has sufficient collateral.

The higher the amount of funding, the higher the collateral must be.

This is essentially due to the fact that the banks and savings banks want to be sure that the borrower is able to repay the sum borrowed, including interest, in full and within the agreed term. For this reason, a credit check is carried out prior to borrowing. Only when this credit check is positive, the applicant can get a loan.

How much credit do I really get?

How much credit do I really get?

The credit and the income

There are several factors involved in answering the question of how much credit a person can get. For a rate or consumer credit, which is given by banks and savings banks, a regular income and a positive Credit bureau information in the vast majority of cases. The income should be in reasonable proportion to the amount borrowed. Therefore, in the first step, it is also important to answer honestly the question “How much credit can I afford?”. The bank will do a thorough audit of revenue and expenditure to answer this.

Only if, after deducting all costs, there is still enough room to pay monthly mortgage payments, including interest, can the claimant obtain the loan. Otherwise, the loan must be reduced or the application must be rejected. For people who only receive an income that is below the statutory seizure limit, it is not possible to get a loan in Germany. Here, the bank would have no way to access the income of the borrower in case of a payment arrears and to seize a part of it.

How much credit do you get at what salary?

How much credit do you get at what salary?

The maximum amount of credit a person can receive is determined individually by the bank.

If the salary is very low and is only slightly above the seizure-free limit, usually only small loan amounts of a few hundred to a few thousand euros are possible. An exception is made only if the borrower can show additional collateral for the loan.

If he owns attachable valuables, he can increase his credit rating significantly. The most important prerequisite for this is that these valuables be left as collateral during the term of the loan so that the bank can call on it at any time if necessary.
If you want to get a loan, you should have the following documents ready:

  • proof of income
  • employment contract
  • Proof of additional collateral that can be used for the loan.

Get credit – with or without Credit bureau?

In Germany it is not possible to get a loan without Credit bureau from a bank or savings bank. The Credit bureau information is an important feature when it comes to assessing the creditworthiness of a person. If there are negative entries, the chance of getting a loan almost always drops to zero. In this case, it would be possible to contact a private lender or a bank domiciled abroad.

However, it would be very important to pay attention to the credibility of the lender and not to pay any fees before it has ever come to award a loan. If the lender insists, it is actually a dubious lender who is only interested in ripping off the customer. A loan will most likely never come.

Can people with no regular income get a loan?

Can people with no regular income get a loan?

The self-employed, freelancers, housewives, students, apprentices, unemployed or recipients have a much harder time getting a loan than workers, employees or civil servants. Many banks exclude self-employed or freelancers in principle from lending, other banks may be willing to give a loan to this group of people. In any case, here are other collateral than required by employees or civil servants.

Which these are, informs the bank on request. Other groups also ask themselves how much credit is possible on what income. Although unemployed or recipients receive a regular monthly amount of money, this amount of money is not sufficient to serve as collateral, but is solely for the livelihood. For this reason, these persons are not creditworthy for the banks.

Car Loan: How much credit do I get?

Car Loan: How much credit do I get?

A car loan is a loan that is expressly earmarked and may only be used to finance a new or used car. Such a loan is given by the bank or the dealership. Who wants to get a loan, should have a regular salary and a positive Credit bureau information. There is also the advantage that the car can serve as security. This means that even people can get a loan for the car, which have no or only bad chances with a normal installment or consumer credit. If the loan for the car is completely paid off, the car finally becomes the property of the buyer. Until then, it remains the property of the dealer.

Credit for the house and the apartment: How much credit can I get?

Credit for the house and the apartment: How much credit can I get?

Buying a house or apartment is a life-long decision that should never be taken lightly. Financing needs are very high and generally well beyond the financing needs of other consumer goods. The collateral for a loan must be correspondingly high. A future builder or homebuyer can only get a loan if he has an income that is secured in the long term and is so high that it is easily possible to repay the monthly loan installments including interest.

Anyone who lives in a property does not have to pay rent, but only pay the loan installments. Nevertheless, he should keep in mind that the total financing requirement is very high and for a property is almost always in the six- to seven-digit euro range.

In this context, the question arises: how much credit does one get at what salary? It can not be a flat rate, but only after thorough examination answer.
The following documents are required by the bank in order to be able to verify the creditworthiness:

  • proof of income
  • Credit bureau information
  • financing needs
  • Willingness to accept a mortgage or mortgage.

If necessary, further documents can be added. Only if the bank has no doubt that the borrower meets his obligations, he can get the loan.

Small payday loan comparison: cheap, immediate and even without credit bureau

A microcredit is a loan that can cover loan amounts of a few hundred to a few thousand USD. Many banks have set a limit of about 5000 USD. Small payday loans can be used to bridge short-term financial shortages or to finance consumer goods. Unless it is a dedicated Small payday loan, the borrower is completely free to use. The bank does not ask for a proof of use.

Small payday loan comparison using the example of 2,500 USD:

Small loan comparison using the example of 2,500 euros:

Small payday loan comparison

 Small payday loan is not always the same as Small payday loan. The offer of banks and savings banks is very diverse, so it would be very difficult for the layman to keep track here. A small credit comparison, which can be done anytime on the Internet, should therefore be the beginning of all considerations. Cheap Small payday loans are not always available at the house bank or at other branch banks on site. Often the online Small payday loans are much cheaper. If the conditions are right, a Small payday loan can be paid within a few hours or days. This applies regardless of whether a Small payday loan is granted with or without Credit bureau. A Small payday loan without Credit bureau is not available in Germany, but only abroad. This is very important because the Credit bureau information is an important feature of the credit check. No banks or savings bank will grant and pay out a microcredit before testing the customer’s Credit bureau information.

Requirements for the Small payday loan

Requirements for the small loan

 A Small payday loan is usually easily possible if a regular income and a positive Credit bureau information is available. The income should be clearly above the attachment exemption limit, otherwise no recovery as security is possible. Individuals who are still in the probationary period, self-employed freelancers or other groups of people with no regular income can only receive a Small payday loan if they can provide additional collateral such as a co-applicant or a guarantor. In the case of a fixed-term employment, a microcredit can be paid out immediately if the term of the loan does not extend beyond the duration of the employment relationship. Further details on the Small payday loan may be provided by the banks upon request.

If you are interested in a Small payday loan, you should have the following documents ready:

  • proof of income
  • employment contract
  • Proof of further collateral.

Small payday loan without Credit bureau

Small loan without Credit bureau

 If you are interested in a Small payday loan without Credit bureau, you should contact a reputable credit intermediary. It is very important not to pay any fees in advance. If the credit intermediary insists, this would be an indication that he is dubious and is only interested in the money of the customer, but not in the credit intermediation. A reputable credit intermediary will not ask for money, but will take stock and realistically assess the client’s opportunities. Small payday loans without Credit bureau usually come from banks or other foreign banks, which are willing to give Small payday loans to German citizens under certain circumstances.

The requirements for a Small payday loan from abroad

For foreign microcredit can basically be stated:

  • Minimum age 18 years
  • permanent residence in Germany
  • regular income above the attachment exemption limit
  • no self-employment, freelancing, unemployment or no persons in training.
  • In some cases, further conditions for a microcredit can be established despite Credit bureau.

Small payday loan Comparison: Cheap Small payday loan? Immediately to the account!

Small Loan Comparison: Cheap Small Loan? Immediately to the account!

 In many cases, a cheap microcredit is available on the Internet. A cheap micro-loan is characterized by low interest rates, low monthly installments and low processing or administration fees. Further information on the terms of various banks can provide a Small payday loan comparison. The interest on a microcredit depends on various factors. The conditions of the bank play a role as well as the creditworthiness of the customer. The latter is the case especially for a credit-dependent Small payday loan. In a Small payday loan despite Credit bureau, the interest may be slightly increased. In this way, the bank wants to hedge against the risk that exists when it transfers the microcredit immediately to the account of the customer, without having previously performed a Credit bureau review.

Cheap Small payday loans received immediately

It often does not take long for a Small payday loan to be available. The entire loan amount will be paid in one amount. An individual agreement is made between the customer and the bank about the modalities of the repayment of the Small payday loans. If it is a installment loan, the microcredit must be repaid in monthly installments over a certain period. The rates for the Small payday loan are composed of the repayment amount and the interest.
Under certain circumstances, a Small payday loan may be repaid early. In addition, many banks allow regular special repayments. Further details are regulated in the credit agreement.

Installment loan or credit as a favorable installment loan

Installment loan or credit as a favorable installment loan

A microcredit may be an installment loan or a credit line. While a installment loan can be granted independently of a bank account and does not have to come from the principal bank, it is exactly the opposite for a credit line. A credit line is an overdraft facility that can be made available to the account holder at any time. The amount of the contingency loan depends on the income and will usually be two to three times the monthly income.

Debt loan as a Small payday loan: advantages and disadvantages

A credit line is a Small payday loan. The bank sets a limit up to which the current account may be overdrawn. If you want to have all or part of this limit, you can do so at any time without prior notice. Equally flexible is the repayment. However, the interest on this Small payday loan is often much higher than the interest that must be paid for a Small payday loan in the form of a installment loan. For this reason, the pros and cons of various microcredit are thoroughly weighed against each other before a binding decision is made.

Installment Loan as a Small Credit: Advantages and Disadvantages

Installment loans are Small payday loans with fixed repayment schedules. There is no flexibility here like with a credit line. On the other hand, there is the advantage that the microcredit must be repaid in any case within a clearly defined period of time. Special repayments can additionally accelerate repayment.

Small credit comparison: favorable micro credits received

The conditions for a Small payday loan are determined by the banks on the basis of various factors. They can change on a regular basis. For this reason, it is advisable to carry out a small credit comparison not only once, but to repeat from time to time. This also applies to the case that an existing Small payday loan should be replaced and replaced by a cheaper microcredit.

Self-employed loans: this is how self-employed people manage

 

Self-employed people often find it harder to apply for a loan. And they are the ones who often need him especially urgently, for private and business purposes. Various banks refuse to lend to the self-employed because the income of the self-employed varies from month to month. Even those who have been very successful in self-employment for a number of years often find it difficult to get a self-employed loan.

Self-employed persons are subject to different conditions when granting loans than to loans for employees. Even freelancers are counted among the self-employed. One way to apply for a self-employed loan is still the house bank, especially if you have longstanding relationships with them and have a permanent contact there.

The conditions for a loan for self-employed are less favorable than for a loan for workers, the self-employed must pay higher interest. Anyone who wants to benefit from low interest rates as a self-employed person, however, need not completely give up hope, because some direct banks offer loans for self-employed, which are characterized by low interest rates and a fast allocation.

1 Self-employed loan – different uses

1 Self-employed loan - different uses

In principle, the loan for self-employed persons is divided into two uses: the loan for private purposes and the loan for entrepreneurial purposes. For both purposes, the loan for self-employed:

  • For the car purchase
  • As a construction loan
  • As a modernization or renovation loan
  • For the real estate purchase
  • For a debt restructuring

be requested. A self-employed loan for personal use can also be used to bridge a financial bottleneck. An entrepreneurial loan is often required for expansion, for example, to expand production facilities and buy new machinery. Often, self-employment loans are required to fulfill an important job and to purchase the right machinery and equipment.

 Since the client often makes no or only a small advance payment and as a self-employed person often does not have sufficient reserves, such a loan for the self-employed is often required, it is often necessary for survival. So that everything can be procured quickly, it depends on a quick provision of financial means, an instant loan for self-employed may be required. Such an instant loan can only be applied for online, because it depends on a quick processing of the loan application, which is not possible at the house bank. Not all direct banks provide instant loans for the self-employed; Many direct banks use interest rates on loan for the self-employed to protect themselves against a default.

1 The credit check for self-employed person

 In the case of loans for the self-employed, the credit check is particularly strict, and the banks are protecting themselves against a default. However, for many self-employed people, credit to secure their livelihood is essential, such as paying salaries to employees, covering current expenses in the event of a financial bottleneck, or carrying out an important job. While employees can benefit from favorable conditions for their loans in times of low interest rates, this looks different for self-employment loans. All banks make sure that the borrower can repay the installments permanently and punctually, which is not always guaranteed for the self-employed due to fluctuating income. While some banks do not lend credit to the self-employed, other banks are examining the conditions for individualization, which is also the case with some online banks, who do not generally refuse to lend to the self-employed.

To check the creditworthiness of the credit Self-employment other than the loan for employees is required, because self-employed have no income in the same amount and no employer. If you want to apply for a loan for the self-employed, you have to go to the credit check:

  • Income tax certificates
  • Profit and Loss Statement
  • Income and surplus account
  • bank statements

submit. This evidence is required, regardless of whether you want to apply for the self-employed loan for personal or business use.

2 For example, the creditworthiness of the self-employed loan is checked

2 For example, the creditworthiness of the self-employed loan is checked

The Bank assesses the loan application, where self-employed persons must provide information on the amount of the loan, the duration, the purpose and their business, and the evidence submitted, and checks whether it is even possible to lend a loan to the self-employed.

If a loan can be granted, the level of interest is determined by the rating, and the lower the credit rating, the higher the interest on the loan for the self-employed. Not only the credit for workers, but also the loan for the self-employed a Credit bureau information is obtained. If there is a negative Credit bureau entry, the loan can not be granted.

3 What to do if the Credit bureau entry is negative

There are still several dubious providers who lure the self-employed loan without Credit bureau and charge a high processing fee, even if the loan for self-employed is not granted. They often bring the self-employed to their existence. If there is a negative Credit bureau entry and a loan for the self-employed is needed, it is still not completely hopeless to get it. If the loan for self-employed persons is to be applied for a private purpose, it can be requested through reputable intermediaries who work with banks abroad.

Since these banks are mostly based in Switzerland, other conditions apply, a Credit bureau information is not obtained. However, as with the self-employment loan with Credit bureau information, collateral is required. The income and expenses must be in a reasonable ratio, collateral such as real estate or life insurance have a favorable effect on the conditions.

If the self-employed person can not provide the necessary securities, he must provide a guarantor who can do so. The loan for the self-employed should be requested only at a low level, so that the existence is not endangered. After all, there are two things at stake in the loan for the self-employed: existence as a self-employed person and private existence ; it is important not to land in the debt trap, there is always the danger of bankruptcy.

4 options if the loan for self-employed is rejected

4 options if the loan for self-employed is rejected

If the application for the self-employed person’s loan is denied, self-employed persons can still try it through a credit marketplace and apply for personal loans for self-employed individuals.

On credit marketplaces private individuals have come together who are willing to lend. The loan for self-employed should however be applied for at a low level and for private purposes, the interested party must create a loan project with loan amount, repayment term and intended use.

The potential lenders decide if they want to lend the loan to the self-employed. Self-employed persons who need a car for private or professional purposes can apply for self-employed car loan. It’s not that hard to get it, because the purchased vehicle serves as security, which leads to favorable terms.

5 Conclusion: The most important thing about a self-employed loan at a glance

5 Conclusion: The most important thing about a self-employed loan at a glance

  • Due to the volatile income situation, lending is extremely strict even among self-employed and freelancers who have been successful for many years.
  • Self-employed people often rely on credit for countless reasons – investments, payroll, important assignments or private purposes are common examples.
  • Special securities (proof of income tax, profit and loss account,…) are mandatory.
  • Providers who offer self-employed loans without Credit bureau information are unfortunately often dubious. It is best to try it on credit markets in this case.

 

How much credit can I afford?

Most people come into the situation of needing money quickly. Be it for a big purchase or to overcome a financial shortage. The idea of ​​having several hundred or even several thousand euros from one day to the other causes many customers to apply for a loan. If it comes to rejection, the disappointment is great. One reason why the loan is declined may be too high a sum.

There is a greater chance of success for consumers who only claim credit at the level they really need. The question of how high the loan can fail can not be explained in one sentence – after all, every loan is subject to different acceptance criteria.

Anyone who asks themselves, “How much credit can I afford?”, Has to think in different directions and must not ignore the reason for the financing.

Do a house – credit helps

Do a house - credit helps

Living in your own home one day is the dream of many people. Unfortunately, most can not afford a house, at least not on their own. There is no question: A loan has to come from. Real estate usually costs a lot of money – although buildings for several hundred euros are usually paid off without credit and in installments, the new inhabitants still have to invest a lot of money.

It is recommended to pay a little more. Thus, the chance increases to a serious offer or on a house that is not in need of renovation. In particular, who wants to afford a new house, requires a lot of capital through a loan.

How much can I afford?

How much can I afford?

Who decides on a loan should not fix a fixed amount. The amount of credit needed depends on different criteria. It is important to think until the end. So that means: The loan should not be used solely for the payment of the property. Many borrowers still have to afford a renovation or want to make renovations. It is better to take the credit in the sum as needed. Unfortunately, this project is not always easy, because ultimately the bank decides what credit someone can afford.

However, financial support is not a game of chance, so prospective borrowers can tax a positive decision on the loan. The best way to ask interested parties is not only the question: “How much credit can I afford?”, But what are the expectations of the bank and what can be fulfilled. These include income of a certain amount, Credit bureau entries, age, place of residence and whether a loan is already being paid (if necessary, customers should consider rescheduling). Depending on whether borrowers buy a new house or afford an existing property, the loan amount is several tens or hundreds of thousands of euros. A cash fall helps to determine the available capital. An example calculation shows how much credit a family can afford:

890 Euro (fortune after all deductions) times 12 months times 100 (percent) gives 1.068.000. This number is divided by the interest rate plus the repayment rate (in percent). The result indicates which credit the family can afford. At best, borrowers have equity. This is added to it – the family can then afford a loan increased by the equity.

Most banks offer special construction loans, making it easier for the borrower to calculate.

For a normal loan other guidelines apply

For a normal loan other guidelines apply

Applicants who do not want to afford a home, but need the loan for a smaller purchase, do not have to make complicated calculations. Nevertheless, here as well: do not take more loads than necessary. If the interested parties want to afford a vehicle, there are usually also separate conditions and loans for this purpose. Otherwise, the loan may only be needed for a washing machine or for balancing the checking account.

As an applicant you have to consider how much credit you can afford. First of all, if you only want to balance your account, you should use the financial support only until you have reached the credit balance – to claim a higher credit in order to be able to afford it is recommended only if the additional purchase is unavoidable and necessary After all, borrowers also pay interest back. The higher the amount, the more interest you pay.

How much credit can I afford – a short version

The amount of the loan to be disbursed depends on the following factors :

  • Value of the goods to be purchased
  • existing equity
  • Tolerance of certain loan amounts by the bank

You can not always afford the credit you want. However, there are ways to make the lender more attractive in order to increase the chance of a commitment.

So you become an interesting borrower

So you become an interesting borrower

Credit bureau is a big topic when it comes to getting a loan. Some banks offer the loan without Credit bureau. Once a year, interested parties can send a list of their Credit bureau files. The overview can be used to determine which entries still exist. If possible, you should have wrongly deleted existing entries (possible when the case is done) – the higher the Credit bureau score, the better. Often, income plays a crucial role. If you want to get the loan you want, you might want to take a second job to increase your income. In addition, it is advisable not to take a disproportionate loan: those who only earn 1,000 euros probably will not get a loan of 50,000 euros. The following factors make lenders more interesting:

  • higher income
  • positive Credit bureau
  • honest information in the application, proportionate loan request

The collateral – different loans with different requirements

Consumers who make a loan without Credit bureau need so-called guarantees – guarantees for constant installment payments, for example through a guarantor. There are prospects who afford a personal or blank loan. The special requirements for creditworthiness and proof of repayment ability apply. Customers can also afford mortgages – but this is a loan in the true sense. Rather, the “hypnotist” must be in a debtor relationship. As security, the land charge on land seizes. The security that a bank wants to demonstrate depends on the kind of loan you want to afford; Other collateral includes, for example, collateral and the provision of insurance by the borrower.

Micro credit with immediate payment: Up to 1000 Euro IMMEDIATELY on the account!

Available money supply is helpful

Available money supply is helpful

When an urgent investment is no longer deferrable, a manageable, immediately available money supply is helpful. For such cases, there is today the microcredit from the Internet, which is to have only relatively small sums, is paid immediately and for which not the bank must be visited.

“With immediate payment” often means here within a few working days. Via money transfer, however, the money may actually be available immediately and in the checking account.

Debit interest rate of 4.83% – 15.49% (depending on creditworthiness) fixed for the entire term, effective annual interest rate: 4.90% up to a maximum of 15.99%, net loan amount: 1,000 – 100,000 euros, contract period: 12 – 120 months. Representative example: borrowing rate fixed at 7.98% for the entire period, effective annual interest rate: 8,29%, net loan amount: 10,000 euro, contract period: 72 months, monthly installment: 175,29 euro, total interest cost: 2620,68 euro, total repayment ( including all fees): 12.620,68 Euro.

Credit check: Yes, but shortened!

Credit check: Yes, but shortened!

It is obvious that even an online bank does not issue money without a credit check. Therefore, in particular, the following documents should be available:

  • credit bureau information (a microcredit can very often also be a loan without credit bureau)
  • Proof of a regular income (eg payslip)
  • Possibly an official identity document (identity card, passport)

Unlike traditional commercial banks, micro-credit with immediate payment is “only” worth the reimbursement ability, so there is no need to order a guarantor or otherwise provide collateral. Important is the bank, which only gets to know the credit applicant online, that it will also be able to repay the microcredit. This means above all: a regulated income in sufficient amount.

Salary: At least 600 euros net, we recommend over 1000 euros net per month. For a micro-loan without income, the mention of a co-applicant with top credit rating on the basis of our experience is highly recommended.

Microcredit: amount and repayment

Microcredit: amount and repayment

The classic microcredit is between 100 Euro and about 1000 Euro. A repayment should be made as quickly as possible and in one payment, often the term is set at 30 or 60 days. The interest rates are only marginally higher in a micro-loan with immediate payment compared to the classic loan, but are usually much cheaper than the overdraft, ergo the overdraft of the own checking account.

This is how microcredit business ends

This is how microcredit business ends

The homepages of the providers are usually very user-oriented. This makes sense in that one does not want to scare the customer with confusing menus. The creditor first selects the loan amount and the term of the loan. The button “Apply for credit” then leads to a secure website that queries personal data. Here should not be lied, in the normal case, even with a microcredit these details are checked, especially if this wants to be booked with immediate payment. At the end of this process the applicant sends the online form legally binding and receives a confirmation by e-mail. The money comes in case of a commitment within a few days.

Caution is still required

As mentioned before: Not every provider of loans on the Internet is reputable. Dubious providers make mostly comparisons that sound all too tempting – such as:

  • high amount of money in a very short time
  • below-average interest rates
  • no credit check

The good news: Black sheep are usually only found on loans of a few thousand euros. Our microcredit top providers are all reputable, cheap and discreet!

Even if microcredit often comes into question when punctual costs have to be met, care should be taken to ensure a well-founded comparison of providers.