Installment payments are not uncommon. When buying on the Internet, in mail order companies or large markets, the purchase can be financed with installment payments. Normally, it is sufficient to present your debit card. Most retailers do not charge a payroll or even an employment contract. The credit rating, however, is checked.
If there are no objections, the customer can have the goods delivered or take them with them. Payable then everything is in monthly installments. The installment purchases, however, are reported to the private credit and, if the installments are not paid, will result in a negative entry, which will limit the customer’s creditworthiness. But sometimes customers need a loan despite installment.
This may become necessary when there are no more goods because they have not been paid back properly, or simply because the customer has lost track of his installments to be serviced. Here would expect a debt rescheduling.
The reasons can be manifold, as already described above. Anyone who wants to apply for a payday loan despite installment payments, private credit shows the registered installment contracts. If these were operated correctly, a loan can be taken despite installment payments. But if there were payments already there, there will be problems with the loan approval. Because the payment irregularity is rated as negative. This can lead to a negative entry that reduces the creditworthiness of the customer.
With a negative feature in the private credit give German banks almost no loans. This is the business of the credit agencies that offer their clients loans from foreign banks. These come from Switzerland, Liechtenstein and Luxembourg. Swiss loans are the name of this form of loan. The name comes from the fact that until a few years ago, the loans were completely lent by the Swiss banks. In 2009 it was regulated by law that only banks are allowed to lend these loans to Germans who have a corresponding license. Experience has shown that this is Sigma Kreditbank AG from Liechtenstein, which also has a monopoly on these loans.
The client could contact this bank directly to pronounce their loan request, but experience has shown that the help of a credit intermediary helps to formulate the loan request. But why this form of credit, which is also called private creditfreie loans? The private credit is not queried to get an insight on the creditworthiness of the customer. The private credit does not exist in these countries, as a result of which the loan can not be registered despite the payment by installments. These loans are not only true credit-rating customers, even the loan seeker does not want to reduce his credit rating, accessing these loans.
If, for example, mortgage lending and the customer hopes for the best conditions, but in the meantime, a loan is needed, this loan would reduce the creditworthiness of the customer. A private creditfreier credit does not appear in the private credit and can not be seen by German banks, the creditworthiness remains.
The cancellations resulting from a private credit statement, must not necessarily be based on payment irregularities, but can affect only by credit entries or installments unfavorable to the private credit. The aftereffects of these events lead banks to disagree with the loan despite installment payments. The Swiss credit, however, can do without this test. Credit security is manifested through income. Therefore, this must be above the seizure limit.
Anyone who has a net income up to 1,093 euros, whose income is not attachable. With a net income up to 1,200 euros, it is 88.28 euros, which can be seized. If the person with two debtors applies for a loan, the seizure limit must be € 1,709.99. All amounts above or above € 3,292.09 are considered fully seizable.
For the bank, the only security that counts is this income with an attachable portion. Of course, since the lender assumes an increased risk with a loan despite installment payments, the loans are not so cheap. In general, you can find about and usually more 10% APR The loan amount is 3,500 euros and the term is 42 months. If you need more money now, you can add a co-applicant or guarantor to the loan agreement. But as experience shows, this loan amount is usually not enough. If the creditworthiness of the loan is not sufficient in spite of installment payments and the Swiss loan with its limited loan amount is not enough, a loan with two persons can be considered.
With this constellation, banks are often satisfied, since they have another person who can be used to secure the loan. In this case, both debtors are liable for the repayment of the loan. Depending on what the creditworthiness of the second applicant is, an interest level of around 5% can be expected with a loan amount of EUR 10,000 and a 48-month term. To create for this situation, it is important to find a second person. The strict credit rules are also made to the second person. A good income from a permanent position and a clean private credit are the conditions. Anyone who has a fixed-term employment contract and probationary period can not be taken as a co-applicant.
Gladly seen by banks are also guarantors. Anyone who has one available, who has an excellent credit rating and a permanent job, can vouch for the loan despite installment payments. However, a guarantor should be fully informed about the guarantee. Preferably from a financial expert and not from the bank, as the bank has only its own advantages in mind. For a guarantee there are different variants. Thus, the enforceable guarantee is designed in such a way that the guarantor can be reclaimed without the debtor having gone through legal proceedings until enforcement, with the result that he is no longer solvent.
In the case of the normal guarantee, it is regulated in such a way that the debtor has to prove his inability to pay by legal means. A guarantor can also be secured by setting a maximum amount for the guarantee and only fixing it for a certain period of time. In addition, the guarantor, which is not a legal judgment, can gain access to the account. So he can check each month whether the rate is paid. If the debtor complies with this approach, the guarantor can point out his surety, which is liable with his own assets.
Anyone who moves to Hartz IV and is unemployed often has no opportunity to receive a loan. However, an installment can be granted here. But here, too, as with all other low-paid persons, you should only use installment payments and a loan if it is ensured that the installments can be paid.
Expensive purchases should be deferred as far as possible or paid in small installments, so that not so big a hole in the budget is torn. Especially the Hartz IV recipient has so every month only a small income. Also, this clientele should try at least a small amount to cover, if it is only 5 or 10 euros. Those who have such a small cushion have more room for maneuver and the financial worries decrease.
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