About borrowing and credit
Check creditworthinessMany young people in particular think that a loan is the easiest way to finance a car, a flat-screen TV or a private home. But appearances are deceiving! To take out a loan, regardless of whether it is with a bank, a car dealer or a mail order company, you must be of age as a rule. But then you are also absolutely legally competent with all obligations and risks.
Serious couches will be you first creditworthiness check, which means that they require collateral and a check with it Credit Registration Office (BKR) to do. If all signals are set to "green", they grant such a credit that they can assume that the funds lent will return. Student credit is an exception because there is no BKR registration and repayment is not always an issue.
Lending is not charityDo not trust credit brokers who lend money without proper prior checks! As a rule, they are not bona fide and they require excessively high interest rates and treatment costs. But banks and other credit institutions do not, of course, exercise the credit business out of charity. As compensation a interest which depends, among other things, on the duration of the loan and the repayment terms. Sometimes it can be interest stuck but often she is variable. This means that it can change at any time. The credit can then be more expensive than originally assumed. See also: Which loan is best for me?
Nominal and effective interestWith interest, one can distinguish between nominal interest and effective interest. The nominal interest is lower and contains no allowances and such. That is why the effective interest. If, for example, it is 7.3 percent, you have to pay 73 euros per year for a loan of 1,000 euros. And then there are the 1000 euros that must be repaid. Seen in a few years, that is quite a good sum of money. Over a five-year term that is already more than 350 euros! That way, the 1000 euros become just 1350 euros ...
Hire purchaseFor purchase on installment the picture does not look much different. More and more companies - car dealers, shipping houses or electrical chains - advertise with "buy now, pay later"There are two pitfalls here: not only is interest added, but you can absolutely no longer negotiate the price. So you pay twice the bill!
Are in redA debit position, being red on the current account can be a good alternative in some situations. Such a debit position is usually granted when a salary is regularly received in your account. As a rule, the permitted limit is two to three months net salary. But remember that the owed debit interest usually around 15 percent!
Take out a loan online: banks get competitionConsumers can now also borrow from private individuals. They simply make an oil application on the web, state how much interest they want to pay and the duration they prefer. The only thing left to wait is for the investor who wants to finance their loan.
Credit on the internet is therefore on the rise, and through internet-credit scholarships everyone can play for bank and lend money to private individuals. But private lenders must remember that they, like regular banks, have to deal with credit risks. Not every internet platform for loans is reliable.