Rate loan – creditworthiness and term of rate loans

Examination of the creditworthiness

Without securities most banks refuse the grant of credit. In addition the so-called selfinformation is required by the monetary mediators and one must disclose his other financial obligations.
Moreover, the loan institutes in most cases require a General Credit Protection Agency information which documents the present loan behaviour of a person and checks therefore the creditworthiness of the singles.

Within the scope of this investigation process irregular repayments of loans or calculations can disadvantageously affect the assessment of the creditworthiness. This statistical value (score value) which moves between 1 and 1000 calculates the likelyhood of the payment failure and assigns the applicant for the credit to one of nine risk groups. The classification in one of the categories is directed after the age, the place of residence, the frequency of moves or account change.

The creditworthiness is the higher, the higher the class is which is assigned the applicant for the credit. To be able to consider a decision for a loan to begin with in rest, it is possible for every potential applicant for the credit to catch up General Credit Protection Agency information independently. You can find out either free of charge by phone or you receive a written elaboration of the General Credit Protection Agency acts against a fee from 7.60 euros (incl. VAT). You can apply for own information with the General Credit Protection Agency also on the Internet.

Definition of the term

The credit period is fixed with the respective bank individually and is directed after the respective finance status. Besides, a frame of from twelve to 72 months can be fixed. Basically the term of the loan contract, however, should not cross the useful life of the bought object. Although a long term guarantees though low rates, a higher interest rate must be taken at the same time. That’s why the payment of high rates is more favorable. Other factors refer to the credit standing, so the financial elbowroom of the applicant and the loan use kind.

Favorable conditions with purpose-engaged loans

A central aspect for the grant of credit explains the object-related intended purpose. By the acquisition of consumer goods you should always note that the term is not attached too high, because the equivalent of the object already decreases after a short time. A classical example of earmarked rate loans are vehicle loans. The car traders very often offer loans for her own house banks. Besides, a deposit is required mainly. The loan necessary still then is mostly offered to a relatively low interest. To avoid financial losses, the customer should exactly check and put to himself the following questions:

# how high the discount on the article is on cash payment?
# how high is the deposit amount?
# Which amount is financed?
# Traps handling charges in?
# Which personal securities must be produced?

If you do not decide on special financing offers of the car dealers, you can visit also a conventional bank with regard to a loan. This does not underbid the drive-in banks with her low interest rates as a rule. There is the possibility to buy his car also without deposit. As a security the banks as long as withhold the vehicle registration document, until the loan was paid off completely. In this connection the standard rate is valid that one should estimate the term of the loan at most for the time in which one would like to drive the carriage.

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