If the refrigerator goes on strike and the car has to go to the garage in the same month, the financial scope can be tight. If you want to bridge such bottlenecks, it is usually advisable to install an installment loan – because the interest rate on the credit line is almost always much higher. How consumers can further reduce the interest burden, explains the independent comparison portal Verivox.
The right information is important
Whether and on what terms a loan is granted, banks decide on the one hand based on the Schufa information, on the other hand based on the information provided in the loan application. “Those who take it very seriously when specifying their personal data can significantly improve their chances of obtaining a favorable loan,” explains Ingo Weber, Managing Director and Chief Financial Officer at Verivox.
It is unfavorable, for example, to specify the purpose “other”, because many banks offer special conditions for certain projects. The marital status of the borrower is also of interest. So divorced ones can improve their score after a year as “single”. The same applies to widowhood. Anyone who classifies his job as an “employee” will be better off “workers”. And also the indication of the industry is important: The service sector has the lowest score. If children are asked, only the offspring who lives in the household or is paid for maintenance should be indicated.
Of course, nobody should misrepresent. This is punishable and the credit is denied.
Verivox has the largest market overview
The conditions of the banks vary greatly. If you are looking for a cheap installment loan, you can use the free services of the comparison portals. “Verivox has the largest online market overview in Germany, eliminating the tedious transition from bank to bank. In addition to negotiated special interest, consumers also find regional loans with us, “explains Weber. “In addition, our experts provide individual and non-binding advice and are also happy to assist in completing the loan application.”
Better interest rates with a second borrower
Many banks offer special rates for applications with two borrowers. Those who work together with their partner usually benefit from better interest rates. In addition, the likelihood that the loan application will be granted increases significantly. But: the borrowers are jointly and severally liable, ie the bank may demand the repayment of the debt from both parties.
Extras make the loan more expensive
A residual debt insurance secures the loan repayment in the event of death, unemployment or disability. However, it is associated with additional costs and is often unnecessary. Because often existing insurance, such as accident, occupational disability or term life insurance, already covered the risks. Consumers should therefore check carefully if they really need a residual debt insurance. There is no obligation to graduate.
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