Lenders

A installment loan is used in Germany like, but you do not talk about it. This is the result of a representative survey by IPOS on behalf of CreditPlus Bank . Especially installment credit enjoys the highest reputation in Germany. A total of 40% of the 100o surveyed consumers could imagine taking up a installment loan. Because it is simple and straightforward, affirm 57% of 34- to 57-year-old respondents and 56.6% of respondents with a high school diploma and university degree.

But you do not talk about it. For a borrowing is still a taboo subject that is not broken. So 72.5% have never talked to friends, relatives and colleagues about the subject. But also the need for education is very high. So 41% could not assess what conditions the installment, retrieve, Dispo – as well as the credit card has. Particularly clear is the comparison between the sexes. For 46% of the women surveyed had no opinion on the different types of credit , for men it was 36%.

The educational level also plays a role. For example, 48% of respondents with a master’s degree have little knowledge of credit . But even 37% of people with a high school diploma could not make a specific assessment in terms of loan types

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The online request on is done quickly. We ask only for the most important information that credit experts need for the quick processing of your loan request – so you save valuable time. customers need an average of four to five minutes, then they have completed the request completely.

Professional support in the search for credit

If you use service for your credit search, you can relax after the request. There are no time-consuming and nerve-wracking negotiations with various BankenBanken sind im deutschen Sprachgebrauch nichts anderes als die Stelle, an der man sein Konto führt. Die korrekte Definition besagt jedoch, dass Banken Gewerbebetriebe darstellen. Diese üben so genannte Bankgeschäfte aus, worunter man die Entgegennahme von Einlagen oder auch die(… weiterlesen)” >banks about the best conditions . These negotiations are handled by credit professionals for you – and you certainly do not have to pay a penny in advance. We get 100 percent free to work.

experts have several decades of experience. So they not only negotiate with the bankers on an equal footing, but are often even one step ahead of them. Thus is the strong partner at your side, which makes the best of it for the banks.

Decide at home

In the interests of speedy settlement, we will send you your loan offer by e-mail and then in parallel by post. So you have the opportunity to check the offer at home. No one is pushing you, no one wants to persuade you to anything. You can and should take as much time as you want to put the loan offer through its paces . Only if you are really convinced, sign the loan agreement and send it back by mail. The payout is then only a matter of a few hours or a few days. And all in all, you enjoy the good feeling of getting the optimal loan – because experts look for the ideal financing for up to 20 different banks.

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Many consumers use the opportunity to finance their long-awaited dreams or unforeseen needs through an installment loan . This is completed at the moment of application and grant on certain terms . These conditions include, but are not limited to, the interest rates that are current at this time. These interest rates can be fixed on some loans. However, this only happens for a certain period of time and then the corresponding new interest rates apply. The end of the fixed interest period can increase the cost of the loan and thus also the financial burdens to be settled. As a result, the borrower may no longer be able to meet its obligations. This can mean private bankruptcy.

If the consumer calculates the installment loan , then he should make sure that the appropriate bank creates a repayment plan until after the fixed interest period. This plan can be calculated with forecasts of the amount of interest to be expected. With the aid of the repayment plan, the person concerned can decide whether he can afford the installment even after the new interest rate has occurred, or whether he would prefer to withdraw from the loan .

If the consumer wants to calculate the credit himself, then he must also take into account the resulting fees. These are costs for processing and any cancellation insurance, which will be announced by the banks. These should be included in the calculation so that a real payment statement can be made. The respective fees are always calculated according to the amount of the loan and can be calculated exactly. If the consumer does not know exactly what costs are charged by the bank , then he should seek appropriate advice in order to plan an exact repayment . In this way, the borrower can prevent him from being surprised by increased costs.

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In addition to mortgage lending , an installment loan and a modernization loan are eligible. The last two types of loan offer themselves particularly, since no mortgage entry is made.

To realize a house construction, different types of loans are generally available. For example, it also depends on how high the total costs or the required loan amount will be.

For example, it may well be that the desired amount is less than 50,000 euros . However, what sounds cheap at first may provide for expensive financing . For smaller loan sums, credit institutions usually have to handle the same administrative burden as larger mortgages . Accordingly, such “small” loans are usually higher in their interest rate . In addition, in the case of mortgage lending, the registration of a mortgage must generally also be included. Because of this, advised in many cases to a usually less complicated installment loan .

In a conventional installment loan is often no land register entry required. Accordingly, there are no notary and land register costs for the borrower . In addition, most of the loan processing is much easier. A small drawback here is simply that the interest charge can be higher than a construction loan . However, borrowers benefit from greater flexibility and can wind up the loan sooner if necessary. In addition, higher amounts are possible here, depending on the income. Often, not even a prepayment penalty , which in contrast is levied on most construction loans.

As an alternative to an installment loan, however, offers a modernization loan. Such a loan is earmarked, which is not the case with a traditional installment loan. However, borrowers typically receive a cheaper rate of interest due to their conditionality. Usually, in a modernization loan extensions, which cost between 5,000 and 50,000 euros, can be financed. As with a installment loan, it is usually not necessary to enter the land register so that savings can also be made here.

promotions

KfW Bank offers a wide range of subsidies; especially when it comes to energy-efficient measures.

If, for example, the budding borrower chooses a modernization loan, then it may be possible to obtain a loan from Bank . This is especially true when the cultivation is heavily focused on high energy efficiency.

However, it is not possible to directly apply for funding from KfW Bank. The bank, where the borrower commissions the loan for cultivation, initiates the appropriate measures. In general, it is even the case that most financial institutions directly inform the borrowers about any funding opportunities available to banks .

KfW Bank loans are characterized, for example, by the fact that they are generally much cheaper than the “normal” loans of other banks, which clearly spares one’s own wallet. Because of this, it is strongly advised to keep this option open and to calculate the options in question well.

method

An extension would be well planned. In addition to a budget is also a cost plan to create. Afterwards it is advisable to compare different loan offers well together.

An extension is a big project and should therefore be planned with care. After all, it is here, for example, to observe the various construction regulations, to meet their own wishes and to find a financing that really fits. Because of this, it’s best to do the following:

Budget:

First of all, it is important to present your own financial situation accurately. The best way to do this is to have a budget that lists the total monthly revenue and all regular and irregular expenses. The result is then the sum that is at your free disposal and from which the monthly installments can be deducted. Here, however, it is advisable not to spend the entire amount for the repayment of the loan , but to leave a certain buffer, for example, for suddenly incurred, necessary expenses and own use left. However, a budget is not just for your own information, but also for the banks. This is because when lending the loan, they ask the lenders for their exact income and expenditure.

Cost plan:

Even before the application for a loan is made, a detailed budget should be drawn up. Here, for example, it is important to speak in advance with potential architects and craftsmen, as well as site managers, to obtain cost estimates and compare them well. Because in this way it is possible to realistically estimate which loan amount is needed. This knowledge is also indispensable for the banks.

Obtain credit offers:

The next step is to obtain different loan offers from different banks. Usually, when a loan request, the house bank is the first point of contact, but it is worthwhile to inquire with other banks. A quick, uncomplicated comparison of the various banks with their loan offers is possible, for example, with an online loan comparison . Here it is very easy to compare the various offers. It is important that the banks make a credit inquiry request and not a credit inquiry at the SCHUFADie Schufa, die Schutzgemeinschaft für allgemeine Sicherung, ist der wichtigste Ansprechpartner, wenn es um die Kreditwürdigkeit von privaten Schuldnern geht. Die Schufa besitzt Daten zum Zahlungs- und Kaufverhalten einer bestimmten Person und kann dadurch Prognosen erstellen. Bei(… weiterlesen)” >Schufa inquiry, because the latter is noted in the Schufa. With multiple loan requests to different banks, it could give the impression that the requests were all rejected. This in turn can help ensure that banks do not approve credit.

Conclusion

An extension provides about an increase in value of the house. However, the project should be well planned and various loan offers should be obtained.

An extension offers more space and ensures that the house increases in value. However, it is important to plan such a project well. For example, a loan, installment or modernization loan may be offered as credit . For both last mentioned credits, no entry in the land register is usually necessary.

Before applying for a loan, a budget and a budget should be drawn up. In this way, the aspiring borrower not only ensures that he is aware of the budding costs, but also that the monthly installment does not exceed personal financial resources. In addition, a cost plan helps to better assess the amount of credit needed. In addition, the banks also need this information.

In general, it is not advisable to simply select the “first best” credit. On the other hand, it is much better to compare the various offers of the various banks so that it is possible to select a loan with suitable, favorable conditions . Helpful in this case can be an online loan comparison.

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A personal loan can be accepted for a variety of things and is therefore very versatile. In addition to the various advantages, there are, as certainly with most things, some disadvantages that should be considered when taking a loan.

Personal Loan

Although the terms ” personal loan ” and “private loan ” are commonly used interchangeably, these are two completely different loan types.

For example, a personal loan is a loan that is given by the banks for a variety of private purposes. A private loan , on the other hand, is granted by a private individual. This means that lending is entirely private and there is no bank in between.

The purpose-built personal loan

A personal loan can be used, for example, to finance your own wedding and / or your honeymoon, to purchase a new bedroom facility and to finance a particular hobby equipment. At the same time, one of the biggest advantages of personal loans is obvious: The loan amount can be used in many different ways, since this is a so-called purpose-based loan .

A disadvantage, however, is that in a purpose-bound personal loan from banks usually a higher interest rate is awarded. The reason lies precisely in the attachment of purpose: Thus, the credit institution can not fall back on any default in a possible default of the borrower on a certain security .

Assigned personal loan

The borrower may only use the loan amount for the purpose stated in the contract.

By earmarked personal loans, as the name implies, loans are understood to be provided by the banks only for the purpose of a particular purpose. This can be, for example, a home loan as well as a car loan.

An advantage of such a personal loan is that the loan is available at cheaper interest rates. Because here it is possible for the banks to use the respective purpose as collateral. Thus, for example, in a home purchase is often a registration in the land register , while in a car financing usually the vehicle registration remains with the bank until the loan debt was paid in full by the borrower.

However, the appropriation also causes a significant disadvantage: The loan amount may only be used for the purpose described in the loan agreement and thus for nothing else.

However, these are usually again “special” personal loans, as they are intended for a specific purpose only.

Loan amount and term

Here one is very flexible and can, to a certain extent, negotiate with the bank.

In a traditional personal loan, the range of possible loan amount is usually quite wide. For example, it is not only feasible to borrow smaller amounts, but larger sums, such as up to 100,000 euros, are also offered. However, this also depends on the respective bank.

Likewise, depending on the personal creditworthiness and the respective income, it is also feasible to negotiate the length of the term with the bank to a certain extent.

Thus, there are the advantages here that much is possible from smaller to larger loan amounts and also the term can be agreed to a certain extent. Accordingly, prospective borrowers benefit from a very high level of flexibility here.

Monthly Rate

A personal loan is due to the constant monthly installment very clear and easy to plan.

In the case of a personal loan, the installments to the bank must be paid regularly every month for the entire loan term. These are consistent installments, payments that are the same every month.

Only the initial or final rate may differ. However, these are only small amounts in euros or even cents. The reason for this is that, depending on the loan amount and the selected maturity, it is not possible to exactly divide it.

Accordingly, this is a clear, very easy to plan loan, in which no surprises are expected.

special services

The special services provided by the banks can save a lot of money and make life a little easier.

Depending on the bank, borrowers also benefit from a wide variety of special services. These include, for example, the possibility of free special repayments as well as the suspension of a monthly emergency, which arrives in an emergency, and a variable repayment rate .

It is therefore advisable to compare the various loan offers well in order to benefit from the various special benefits. After all, it is, for example, feasible to save a lot and to make the repayment of the loan much more pleasant.

requirements

Even with a personal loan , the borrower has to fulfill a wide range of conditions.

On the negative side, in the case of a personal loan, as with all other loans, there is also the fact that the prospective borrower has to fulfill various conditions in order to obtain such a loan. These usually include not only a safe, regular income, but also a good credit rating and a positive Schufa- information. Likewise, the banks usually pay attention to a German residence as well as a German checking account . The positive features of a loan, on the other hand, are that it is not necessarily necessary to forego such a loan even if there are problems in meeting the conditions.

For example, with the help of a guarantor or a second borrower, it is still possible to obtain the desired personal loan. However, of course, care must be taken here that the respective person then in turn meets the various credit requirements. In addition, the second borrower or the guarantor should be fully aware that he will be prosecuted by the bank in the event of insolvency of the actual borrower. This means that he, rather than the borrower, has to pay for the remainder of the loan.

As a guarantor or second borrower, the most diverse people come into question. For example, it is possible to use parents, grandparents or siblings here. Likewise, more friends or friends are possible. As long as the person concerned fulfills the respective requirements, it usually does not matter to the banks who is used as guarantor or second borrower . So you are very flexible in this regard.

Conclusion

A personal loan offers a variety of benefits.

All in all, a personal loan offers more advantages than disadvantages. For example, it is not only possible to choose between smaller and larger loan amounts, to discuss the duration and the amount of the installment with the bank, and to profit from an uncomplicated repayment of the installments.

In addition, with the help of such a loan, it is also feasible to fulfill a wide variety of wishes immediately.

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It has certainly spread around that loans can be applied for over the Internet, which many may not yet know is that these are often even cheaper and have lower interest rates than if you go to the bank counter. This is simply because banks have a lower cost through the internet, and sometimes they pass that on in the form of lower interest rates, so if you want to take out a loan, you should do so over the internet.

Which bank has good credit conditions ?

This can be easily found out with the credit comparison .

The loan comparison has updated all the conditions of the banks daily and provides them with a simple query available, this is in the credit comparison, the desired loan amount and selects the appropriate maturity , already appear those banks with the best terms.

Here, the loan comparison also acts the same as a loan calculator , because this is calculated based on the loan amount and the term of the monthly loan installment , so you immediately know what a credit cost. If the monthly rate is too high, you extend the term.

What you should know is that banks also have different rates of interest within their own bank, depending on loan amount and term, which means that you should specifically enter the amount of credit you need to get the right result.

Some good internet loans :

The Volksbanks and Raiffeisenbanks have joined forces to jointly offer – which can be applied for on the internet with loan amounts ranging from € 1,000 to € 7,000 .

The German Kreditbank also offers a loan on the Internet, this is connected to the Internet account, which can be obtained for free, here are possible loan amounts from 2,500 euros to 50,000 euros . If you have credits in your account, you will currently receive a credit interest of 2.05% pa, which is very good, which is very rare to get in a checking account .

Another very good credit provider is which is especially for loans with short-term, ie 12 months, particularly low rates in small loans ( 2,000 euros are), this is very well suited to his checking account balance, because if you checking account overdrawn This means that you pay much higher interest rates, which are often between 8% to 16%; at , this special loan currently costs 2.99% pa

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The Frankfurt-based BANK will rely heavily on online loans in the future: regardless of whether it is a classic installment loan , a flexible credit facility or an innovative Vario loan , since June 2011 all of the ambitious traditional bank’s loan offerings are also available on the Internet. A special plus are the attractive online conditions and the uncomplicated application.

What was previously only known to insiders in the online industry seems now to be the focus of attention for many consumers as well: fast credit application is one of the clear advantages of BANK . For loans up to 25,000 euros, for example, the company belonging to the Association of German BankenBanken sind im deutschen Sprachgebrauch nichts anderes als die Stelle, an der man sein Konto führt. Die korrekte Definition besagt jedoch, dass Banken Gewerbebetriebe darstellen. Diese üben so genannte Bankgeschäfte aus, worunter man die Entgegennahme von Einlagen oder auch die(… weiterlesen)” >Banks needs just three documents. In addition, according to the experts, the “unbureaucratic design” of the online application and the “clear presentation to the prospective buyer” are to be especially praised, which will give many consumers additional confidence in the loans of .

As soon as the application is approved, ‘s credit customers can look forward to the favorable fixed-rate conditions already presented to them on the Internet. Once the required creditworthiness has been established, all interest rates are independent of credit rating. So, if the customer has calculated their preferred loan online, they can be sure that they will actually receive the interest rate they have calculated.

By the way: On request, the attractive credit terms can also be retrieved using the new OYAK app for smartphones (download in the App Store and Android Market). Anyone who is on the internet a lot anyway should add the new credits to any future credit comparison.

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For some banks, they are a matter of course, with other banks to ask: Additional agreements are not always included in a loan agreement , offer the borrower usually some benefits. Because of this, it is well worth it, if once checked in this regard before closing.

Unscheduled

Special repayments are not automatically an integral part of loan agreements. The best way to ask directly when applying for the loan , whether one or more times a year free special repayments are possible.

A not to be despised additional agreement is the possibility of special repayments. Here it is possible, depending on the bank , either once or several times a year, to pay a certain amount in addition to the monthly installment . This procedure has two advantages: On the one hand, the loan amount is reduced faster and, on the other hand, you save interest .

For example, special repayments can be made if a certain sum has been inherited, the employer has paid Christmas bonuses, a home savings or life insurance policy has been paid or something similar. Of course, it is also feasible to put back a certain amount each month and then pay it.

If special unscheduled repayments have been agreed in the loan agreement, it is easily possible to make them in the respective amount. However, if there is nothing in the contract in this respect and you still want to make such a payment, this is either not possible at all or only for a certain fee. This is the so-called prepayment penalty . This is required by the banks because of the interest income lost due to the special repayment . In such a case, it should be recalculated well in advance whether the special repayment in spite of payable prepayment penalty is worthwhile or perhaps not.

In order not to have to pay any fees, it is therefore much better to make an advance payment and to ask directly for the loan application for the possibility of free special repayments.

Payment protection insurance

The residual debt insurance is used, for example, in the case of death or unemployment of the borrower. It is best to individually check whether such insurance is worthwhile.

Although some banks already offer the completion of a residual debt insurance by themselves, with other banks must be nachgehaktem in this regard. The residual debt insurance occurs, for example, in the case of unemployment or death of the borrower. So you have in the case of the sudden loss of employment not even worry about paying the installment commitment thought. Should the borrower unfortunately die, the bereaved do not have their financial worries to grief.

However, it should best be decided on a case-by-case basis whether you need such insurance or not. For a single who only receives a smaller loan amount and pays off in low monthly installments, such insurance certainly makes only limited sense. A family man with several children who, for example, paid off a relatively high house rate is certainly well advised.

In any case, it must be remembered when concluding a residual debt insurance that, in addition to the monthly loan installments, the amounts of the insurance must also be paid on an ongoing basis. Accordingly, there is a higher financial burden here.

It may even be that banks insist on obtaining such insurance when lending . In this case, then you have little choice: either, the remaining debt insurance is completed or rejected the loan . The reasons for this can include, for example, lack of collateral .

Alternatively, however, it is also possible to look for another bank that may refrain from taking out the insurance.

Later payment of the first installment

Some banks already offer a later payment of the first monthly installment . If this is not the case, you can ask for it.

When concluding a loan agreement, it is usually the case that the first credit installment must be settled immediately. However, some banks have moved the payment of the first installment a little further back so that the borrower can only start repaying the loan at a later date.

Anyone who requires a loan but does not want to settle the first installment immediately, can confidently address the bank once for this possibility or specifically search for an offer that already includes this special agreement.

Expose a rate

If it is included in the loan agreement that a monthly installment of loan repayment can be suspended in a financial emergency, this is often a considerable relief for the borrower.

If it is already enshrined in the loan agreement that it may be possible to suspend a rate if necessary, this can be a considerable relief for the borrower in an emergency. For example, it is possible that the car suddenly goes on strike and a costly repair is pending. Or the refrigerator suddenly quits its service and it must be provided quickly for replacement. In these and similar cases, the ability to suspend a rate is often an absolute relief. So, the new device can be bought in peace and the car can be repaired and the following month you pay off the loan as usual. So there is no financial bottleneck here.

repayment change

An amortization change offers greater flexibility in changing circumstances.

The amount of repayment does not necessarily have to remain the same. If the option to change the repayment has been contractually agreed, then it is possible for the borrower to change the repayment downwards or upwards accordingly.

If, for example, you have benefited from a salary increase, then it makes sense to increase the eradication. If, on the other hand, new offspring announces, it may be better to set the redemption amount lower. Here, the duration and the monthly installment are adjusted accordingly.

Accordingly, an amortization change offers the possibility of adjusting the amount of repayment depending on the life situation.

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Personal loan a loan granted by a bank to a private individual.

A personal loan is a loan that is given from one bank to one person. This is usually a purpose-based loan. This means that the funds can be used for a variety of purposes, such as a dream trip or a renovation . When awarding such a loan, the bank checks the creditworthiness of each client. This means that not only a query at the Schufa is obtained, but for example, also a safe, regular income must be present.

Likewise, the bank usually inquires about collateral , such as Bauspar , life insurance and real estate. Furthermore, it is usually important that the age of majority has been reached and that the place of residence is within Germany. Private loans are offered in different amounts and terms .

The funds are paid in monthly installments, often with the possibility of special repayments.

The loan from private

In this variant, lenders and borrowers are two already known persons.

A private loan is made between two private individuals. Thus, no bank is involved here. There are, however, two different variants. For example, it is possible to borrow money from a family member, friend, work colleague, or other acquaintance. Here the respective conditions can be freely negotiated with each other. However, it is advisable to record the agreements in writing so that no disputes may arise at a later date. Another variant is the so-called P2P method.

P2P: peer-to-peer

The privately loan is granted through a corresponding platform.

Another form of private loan between two people is the P2P model. P2P stands for the English “peer-to-peer” and means something like “human-to-human”. However, the term itself can be used not only specifically in the banking industry, but in all transactions that take place between two private individuals. For example, it can be about services.

As an alternative to a private loan from a bank, borrowers and lenders meet on corresponding platforms on the Internet. The platforms themselves do not lend and finance themselves through the fees, which are usually only a small percentage of the loan amount. Due to the lack of participation by a bank, borrowers usually benefit from a rather low annual interest rate.

Prerequisite for a P2P loan

Among the basic requirements is the age of majority, a German residence and a German bank account, a secure, regular income and a good credit rating.

Even if no bank is involved, there are several basic requirements for a P2P loan. So it is indispensable that the budding borrower has reached the age of majority and is fully capable of acting. Furthermore, his domicile must be located within Germany. But also a good credit rating and a German bank account are necessary. In addition, a permanent employment relationship and a corresponding, secure, regular income are often required.

advantages

Free registration, simple and uncomplicated process.

A P2P loan offers many advantages. For example, signing up for most of the corresponding platforms is free. As a rule, a fee is only payable for a successful mediation. But also the further procedure is simple as well as uncomplicated. For example, as a potential borrower, you simply specify the desired purpose and the sum. Interested investors are then able to view the various publicly held loan applications, to review them and then to vote for or against the awarding of a loan. Once the loan amount has been transferred to the borrower, the repayment is made in monthly installments.

Although a credit check is also made on a P2P loan, it is fully automatic.

Since such a credit request indicates the desired purpose, it may well be possible to obtain credit even in the case of a negative credit check. In addition, the decision on a loan is usually much faster than a bank is the case. The respective amount is usually credited within a few days on your own account.

Good to know: With a P2P loan, it is possible for the two contracting parties to freely negotiate the conditions. In this way, suitable conditions are possible for both persons.

Compare and save

On corresponding platforms, there are different offers, so that under certain circumstances can be saved significantly.

In the meantime, a large number of private-equity lending platforms exist. Because of this, you should not miss the opportunity to compare the various offers well with each other, as these differ significantly, for example, in terms of terms and conditions.

So it is quite possible to save a lot here.

Collateral and special repayments

With a smaller loan usually no collateral is necessary. Special repayments are usually readily possible with a P2P loan.

If the private loan moves on a smaller scale, collateral is usually not required. However, it may be advantageous, especially if the credit rating is not so good, if a second borrower is mentioned. This increases the chance of getting a loan.

In contrast to most banks , private loans are usually welcome payments and repayment before the actual due date . A prepayment penalty is not common.

Attention: Within Germany §32 of the Banking Act applies.

This means that anyone who offers their money for lending on a commercial level needs a permit issued by the Federal Financial Service. As a result, many German intermediaries have begun to change their business model to include a bank in between during the lending process. In this way, the necessary full banking licenses are available.

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Many people are looking for a solution to borrow despite the fact that they have made a loan once and the banks know it. In our article, we will examine what can be done in this case.

The Central Credit Information Database (KHR) has the data of everyone who has ever taken a loan. It is stated that the person has failed, or has committed an abuse, but also if he or she has paid properly. So, unlike the previous BAR list, there are not only those who once stumbled in the KHR, and for some reason did not pay the loan installments, but the good debtors, the former are negative, the latter are positive.

Credit institutions, when assessing loan applications, check all credit applicants for the debtor and obtain the data stored in the CCIS, as appropriate. They have a vital interest in getting to know them so they can be sure that their money will be seen in the loan.

This check is part of the credit assessment process at every bank and is beneficial to everyone. Well-paid debtors can get better deals, and borrowers who fail to repay the loan do not borrow money to prevent insolvent or over-indebted customers from taking on additional financial burdens on their neck, and of course, the bank also avoids the risk of losing out on their money.

The point is that anyone who has never properly paid for his credit – exactly the overdue and unpaid debts are higher than the minimum wage at that time, and lasts for more than 90 days – its data are classified as negative in the KHR and the banks do not give him credit. However, in some cases, there is a chance.

If someone does not settle his debt, he will store his data for ten years, and no one will lend to him during that time. On the other hand, if you repay the outstanding loan amount, you will first be in a passive negative status, and after one year you will be automatically and permanently deleted. Then, with a conscientious conscience and a greater chance, you can apply for a new loan. Of course, only if you have carefully considered whether you really need it and whether you will be able to pay.

If you do not repay, but you can close the loan transaction with a solution, even with the loss of the bank, your data will be kept for five more years, so you will not get any credit.

Whether it’s on the list, everyone can query for free at any home financial institution. They are obliged to inform their clients about the classification and the data contained in the KHR.

There are some credit institutions that are rumored to be given credit even in the case of a negative rating, but the reality is that every financial institution checks the KHR status of their borrowers, and who has an active negative rating cannot get credit. Of course, this can be avoided by borrowing for the name of your spouse, other close relative or friend, but financial experts warn you of such a deal.

If someone has already made a loan before a new one jumps in, you have to think about how it will be repaid. Nor is it recommended that somebody settles for a bad loan with another loan. Although there are loan redemption schemes, these can mostly be used to replace loans with higher interest rates earlier, due to the current lower interest rate environment, to slightly more favorable interest rates and repayment loans.

According to the recommendations, who slipped with his credit, he should concentrate primarily on settling it somehow. This can usually be negotiated with the bank, but even with the bailiff, and there is also a private bankruptcy facility, where it is possible to mix up with the debt trap with austerity and state support.

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