Credit Without Information – get a real loan

Effective annual interest rate

Effective annual interest rate

A lot is promised in advertising. Very much. In the case of loans in particular, statements are advertised that are not at all accurate. It starts with the interest rate, because the consumer often only reads the nominal interest rate, but not the effective annual interest rate, which is significantly higher, because the costs were also included here.

The typical example of misleading advertising is a credit without information. Many consumers believe that credit bureau is not queried. But this is a widespread mistake, because in Germany it is common to check the applicant’s creditworthiness. There’s no way around it.

Credit without information

Credit without information

You can only get a real loan from which no credit rating is checked from abroad. The so-called Swiss loan is known, although the amount of the loan is limited. But in Germany too, those affected have the opportunity to get a loan despite a negative credit rating. This is made possible by intermediaries who have business relationships with banks who, even with negative credit bureau information, give this group of people the opportunity to obtain a loan. The credit bureau entries may not be so serious.

Loan request from an intermediary

Loan request from an intermediary

In this context, it should be mentioned that a loan request from an intermediary does not cost money. Fees only arise when a loan has also been approved. Then the agent receives a placement fee. Therefore, caution is advised when paying in advance. Under no circumstances should you take advantage of these offers, because the money paid is not only gone, but usually there is no loan contract at all. Unfortunately, in such cases dubious dealers are at work who shamelessly exploit the financial hardship of these people. Then you should rather use a loan without information from Switzerland.

This is made possible by intermediaries who have business relationships with banks who, even with negative credit bureau information, give this group of people the opportunity to obtain a loan

Low Interest Loan borrower wants to pay the lowest possible interest

The interest payable represents the price of a loan, so that every borrower wants to pay the lowest possible interest on their loan. The desire for a long loan term with correspondingly low rates is not always compatible with the pursuit of low interest rates. The effective annual interest rate is decisive for the credit costs, while the nominal interest rate is used for the recalculation if the loan agreement is not always possible to change. While the effective annual interest rate is the percentage loan cost, the difference between the amount paid out and the total repayment within the loan term shows the total cost of the loan.

What are the requirements for a low borrowing rate?

What are the requirements for a low borrowing rate?

In order for credit customers to get a loan with low interest rates, they compare the prices of different providers. In principle, it can be observed that loans applied for online are cheaper than in a bank branch or credit agreements concluded by telephone. Furthermore, instant loans are regularly more expensive than loans with a normal processing time, so that borrowers with sufficient time do not apply for a loan with immediate disbursement.

The reason for the higher interest rate on the instant loans is that borrowers are willing to pay higher debit interest to compensate for a quick cash payment. In addition, the only partially possible examination of the credit documents increases the risk of a loan default, so that the lender has to raise the interest as a risk compensation. A loan without proof of salary is never a loan with low interest rates because the lender cannot afford it because of the high risk. The same effect also occurs with loans without Credit bureau, so borrowers with a good credit rating should not apply for them.

Loans with particularly low interest rates

Loans with particularly low interest rates

Banks grant loans with low interest rates for purchases such as real estate or a vehicle, since the object financed in each case serves as collateral for the loan. Securing a loan that is not directly related to the property via a land charge is also possible after the original property loan has been paid off and, thanks to the excellent security, leads to low interest rates. For other purchases such as furniture or bicycles, a loan with low interest rates can in many cases be taken out via the retailer or agreed directly with the retailer in the form of an installment payment. Few policyholders think that if they need to borrow, they can borrow from an existing life insurance or a pension scheme that they have.

In this case, you actually pay interest on your own money, but keep your insurance cover and pay significantly lower interest than at the bank. Employees inquire with their boss or the works council whether there is a company agreement regarding an employee loan. The employer grants a loan significantly cheaper than a bank and offsets the due loan installments directly against the following salary payments. The low-interest loan from the employer only has the disadvantage that the remaining amount is due immediately if you leave the employment relationship.