Favorable credit – which hurdles are to be mastered?

Favorable credit

Due to the current low interest rates, we are constantly receiving inquiries about favorable loans. To meet the needs of prospects and customers, we use a variety of online banks and comparison portals to get cheap loans. However, it is not quite as easy as often advertised to get a favorable loan. There are a few hurdles to overcome before the money is credited to the account.

1. The creditworthiness

For a lender, the creditworthiness of the debtor – i.e. the borrower – plays the most important role. The creditor must understandably be able to evaluate the risk, whether a default of the credit installments is to be expected or not.

The better the borrower's own financial situation, the more favorable the loan usually becomes. A consumer who already has several loan obligations will have a hard time getting another loan. The income of the borrower plays an equally important role. The amount of income can z.B. Provide information on whether the loan installments can be paid regularly

2. The credit check

With a credit inquiry the banks avail themselves of different societies for the credit investigation. The SCHUFA is probably the best known in the private sector. Anyone can apply for a Schufa report themselves online. However, Schufa makes you pay for it. This is how much a Schufa report costs, z.B. for an apartment seeker to present to his future landlord, currently € 29.95.

To avoid unpleasant surprises, it is advisable to check your creditworthiness before applying for a loan. This goes meanwhile without fees. Relatively new on the market is the credit report Score Kompass. This service is free of charge. After registration, the evaluation of one's own creditworthiness ("scoring") and even an "account scoring" can be retrieved online. Thus one is simple and at each time on the next credit investigation – z.B. for a loan – prepared. According to the website, ScoreKompass works together with the well-known credit agency infoscore Consumer Data GmbH in Baden Baden. The connection to further Auskunftein is planned. Besides there are still useful Tipps by newsletter, how one can improve its credit standing possibly.

Score Kompass is, by the way, a brand of smava GmbH from Berlin, one of the largest and oldest online comparison portals for loans in Germany. To offer potential credit customers a simple and useful tool such as the ScoreCompass, seems to me to be a sensible and logical idea. If a ScoreKompass participant makes a credit inquiry via the comparison portal of Smava, this simplifies the credit check, which the credit customer brings along quasi immediately.

3. The monthly burden

If the creditworthiness is clarified and no obstacle for a credit granting, it applies now to plan the repayment installment. For this purpose, the financial situation – i.e. regular income and expenditure – should be organized in the best possible way. A detailed list of the monthly amounts in the form of a "household budget plan" is very helpful in this respect.

The question of the repayment period is extremely important here. After all, it must still be possible to meet regular expenses. What good is a quick loan repayment if other expenses can no longer be paid for it. The lower the interest rate on the loan, the longer the repayment period can be scheduled. This will increase your confidence that you will be able to pay the installments regularly as well. If the monthly surplus (income minus expenses) is very high, the loan installment can be made accordingly high. The time to repay the loan is then shortened accordingly.

4. The interest rate lock

In some loan agreements – z.B. In the case of real estate loans – the question of fixed interest rates arises. A long fixed interest rate is currently a fine thing for the borrower. This makes it possible to profit in the long term from currently low interest rates. Furthermore, a fixed rate always offers planning security, as the monthly installment can be firmly planned for the period of the fixed rate; and this often over 15, 20 or even 25 years.

For the bank the fixed interest rate represents a risk. Eventually market interest rates will rise. For customers with fixed interest rates, however, the interest rate cannot then be raised. The bank thus misses out on higher interest gains. This fact makes a long fixed interest rate more expensive than a short one. This is because banks make you "pay" for the fixed interest rate by adding a premium to the short-term interest rate.

5. The right bank

When choosing the "right" bank for a loan, one is spoiled for choice. The house bank is not always the right partner. As mentioned at the outset, there are a growing number of online banks and comparison portals for consumer loans and construction loans on the Internet. Online banks take advantage of low operating costs and often pass this advantage on in the form of favorable interest rates. Comparison portals, on the other hand, thrive on mass business. They select customers eligible for financing on behalf of the lenders and prepare the loan documents. A win-win-win situation from which everyone benefits. The consumer, the bank and the comparison portal.


Not every offer that is tempting at first sight is really suitable. After all, a loan is usually a long-term payment obligation. However, if you do your homework – and at least o.g. Points

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