Loans now determine the everyday life of many consumers. Loans can help to realize dreams and desires, such as those from your own home. However, loans can also quickly lead to the debt trap and result in the financial ruin of an entire family. So that this does not happen to you, we give you important tips on the way. If you follow the golden rules, not much can actually happen.
Get information in advance
Before indiscriminately applying for a loan from an apparently cheap provider, it makes more sense to first weigh up the available options. If there are credits, they should be used. The overdraft facility is only considered if a settlement can be made within three months. If neither is the case, an installment loan can be the best solution.
correctly assess the financial possibilities
Check in advance how much you can afford. To do this, determine your freely disposable income by deducting the necessary expenses from the income. The rate should only ever be so high that part of the freely disposable income is used. Another method that is also useful is to estimate 15 percent of your monthly net income for a rate. However, this presupposes that the corresponding funds are free.
Compare different providers
Take the time to compare offers for free using a credit comparison portal. Look for a cheap loan. The basis for comparison is always the annual percentage rate.
Comparison is not the same. If you use a free credit comparison, only offers on the same basis should be compared in order to get a correct result. The loan amount and term must be the same, otherwise the result is vague. Get several individual offers, only those are really comparable.
If possible, do without the residual debt insurance
The cost of the residual debt insurance is not included in the annual percentage rate. The RSV makes your loan more expensive. It is not absolutely necessary for the normal installment loan. Only the insurers and the banks earn from it.
Avoid private credit intermediaries
Alternatively, a credit broker can only be engaged if banks reject your loan request. Basically, caution is advised here. There are many intermediaries who do not intend to provide credit. Better consider your financial situation. A loan is probably not the optimal solution to the financial problem.
Loans without Credit Bureau are more expensive
Loans without Credit Bureau cost more. The intermediary charges a commission, which you as a borrower have to pay in addition to the loan fees. If you get involved, then only if the loan is actually brokered. If a credit broker requests advance costs, then do not use them.
Use the Internet
Apply for the loan directly online. Take advantage of the Internet. So you get the credit decision quickly and the money is quickly paid out.
But remain suspicious – don’t believe everything that is promised on the Internet. Not everyone gets credit. Creditworthiness is always required. Don’t fall for decoy offers. Favorable interest rates dependent on creditworthiness are only made for advertising purposes. The reality is usually different.
Do not sign a blank contract
Make sure that the contractual documents you have are complete and correct. Before signing, read the fine print and have a copy of the contract delivered to you, which you should keep with your records. Sleep over it for one night before you finally sign.
Make use of your right of withdrawal
You have signed and you have already received the money and find that it was wrong to take out a loan. Do not be afraid to exercise your right of withdrawal. You have a right to do so. You can cancel the contract within fourteen days without having to give reasons.
Follow the rules and never spontaneously take out a loan – you will see that it protects you from hopeless debt.