Before a loan is awarded to a consumer, he has to meet various conditions and apply. With enough knowledge, however, these conditions should not be major obstacles.
Find the right bank
All banks and other agencies offer loans. Therefore, users should think carefully about where they should go for their personal loan. To do this, they should not simply go to the services of the individual banks and apply for a loan anywhere. Each application is included in Credit Bureau’s scoring and is rated as a negative feature by many banks. They only receive the information that a loan request has been received and has not yet been concluded. Therefore, they assume that the loan failed due to negative characteristics on the part of the applicant. It is therefore assumed that other banks did not consider this person to be creditworthy.
This problem is now known to those in charge in the banks. It can therefore be worthwhile for an applicant to address this problem aggressively and explain the reasons behind it. Still, so many loan requests can be a big hurdle before your own loan. Therefore, it makes more sense to get detailed information before actually borrowing, so that only the best individual offers need to be discussed directly. Every reputable credit institution has an extensive website and often interested parties can already find a credit calculator there, in which they can enter their personal terms. In addition, there are more and more websites that compare the individual offers of the big banks. However, the users cannot enter individual data, and in this case only the respective interest rate serves as a comparison feature.
Conditions for a loan
Banks do not give loans to charity, they also want to make money with this business practice. Credit defaults are always a high risk of loss for them, so they want to minimize the likelihood of them. Therefore borrowers must be able to provide collateral. In most cases, this is proof of income and Credit Bureau information. The self-employed or people with negative Credit Bureau entries have considerable difficulties in obtaining a loan. In such cases, many banks also take values other than collateral. So there is almost always the possibility of a surety or property as security, such as insurance or real estate. There are always offers on the Internet that seem to forego security. However, these are almost always dubious and should not be accepted. They are almost always associated with enormous costs and serious consequences for the user.
Important when making a loan request
Your own information when making a loan request can determine important characteristics in your future life and it is therefore extremely important to provide accurate and honest information at this point. The information used should therefore be selected and prepared before the actual request. In this way, the eventual loan can be perfectly adapted to your own requirements and the bank’s later claims remain within the framework that can be individually tailored.
In addition, false information is a reason for every bank to quickly refuse the loan request without further negotiations. Precisely because of Credit Bureau’s scoring, this can have far-reaching consequences. Since the issue of loss or profit in the financial area is also a matter for the banks, they will conduct detailed research and request official documents. As a result, every lie is uncovered quickly and before a possible contract is concluded.
Especially on the Internet or in newspaper advertisements, there are credit intermediaries who promise loans on favorable terms. However, consumers should be very careful with some offers. Some of these services are only there to collect as much data as possible and then sell it. Therefore, users should research carefully before entering their data. With dubious or critical offers, there are often reviews and negative entries from users with the appropriate experience in forums or other sites. But there are also dangers lurking, because such entries were also discovered by the advertising industry.
Criticisms that only turn out to be good or that sound a lot like marketing should therefore not be viewed without criticism. Prompting for a fee before the credit request should put you off immediately. This is not serious or professional and this payment does not mean that a contract will be concluded. Such a fee should not be paid to a credit broker or directly to a bank. However, a credit broker can be useful if a so-called Swiss loan, i.e. a loan from a bank abroad, is to be created. This is particularly interesting for consumers with a negative Credit Bureau entry, because foreign banks do not follow this standard. In return, the interest rates are usually higher and, of course, the credit intermediary also wants his share. A reputable intermediary only requires this when the contract is concluded and in most cases depends on the amount of the loan.