Whether buying a house, traveling around the world or planning a wedding – there are many reasons to take out a loan. However, the application and its approval is not always as easy as it appears at first glance. With a few tips and tricks, everyone can still get the desired loan amount and realize all of their dreams.
The dreaded Credit Bureau information
For many borrowers, Credit Bureau Holding AG is an absolute “fear opponent”. A negative Credit Bureau entry and the desired loan amount is no longer available. But in general, most Credit Bureau entries are positive in nature. Because even positive things, such as fully paid loans, are saved as a Credit Bureau entry. And these then have a positive effect on the loan request. Most banks actually grant loans less if Credit Bureau information is negative. In these cases, they no longer consider customers’ creditworthiness to be a given and classify the risk of insolvency as too high.
For customers who do not receive a credit from the house bank due to a negative Credit Bureau information, there is the option of a loan without Credit Bureau information. A so-called “Swiss loan” makes sense if the customer urgently needs money but the bank does not approve the loan due to the negative entry. Of course, these providers, who are usually based in Switzerland, do not blindly grant the loans. Here too there are certain criteria for lending. These include:
- Age of the applicant
- Regulated income to be able to repay the installments
Attention: With this type of lending, consumers are required to pay close attention to the seriousness of the provider! Financial service providers who charge fees in advance should be avoided, for example.
Have accurate information ready
Regardless of where a loan is ultimately applied for, the applicant should have some important information ready. Banks in particular continue to expect a personal interview in which the applicant should explain what he needs the loan for. In recent years, more and more people have bought or even bought condominiums or homes. This was particularly worthwhile due to low interest rates. In the meantime, mortgage lending rates are rising again, which means that loan requests are once again devoted to other areas. But here, too, it is helpful to provide clear information about what the money is used for. To apply for a loan, the applicant must be able to answer the following questions:
- How much should the loan amount be?
- How long should the term be?
- What is the sum needed for?
- What guarantees are there to be able to repay the money in the agreed time?
It is immaterial whether the applicant applies for the loan privately or for his company. In most cases, only the conditions differ.
Whether online or stationary: It is worth comparing different providers. From time to time, banks offer offers where borrowers can benefit from particularly low interest rates. There are also many different offers online that are profitable. It is of course just as important to pay attention to seriousness here. Some banks expect the borrower to have an account with the credit institution. This is not a problem either, because banks have had to help their customers switch accounts since 2016. In this way, standing orders switch banks in a few simple steps and customers can take advantage of the new bank’s loan offer.
Caution should be exercised with loans
Basically, borrowers are cautioned. It is all too easy for them to lose track of their finances and get into debt. Then a loan is replaced with a new one and, thanks to various options without Credit Bureau information, a new loan is taken out. In the end, the consumer no longer knows how much money he actually pays back to which bank every month and can no longer raise the sometimes horrendous sums. One possible consequence is personal bankruptcy.
In any case, consumers should carefully consider whether a loan is necessary to achieve the goals set or whether there are other ways to implement the wishes