Payday loan document: Build your loan application

Before you can give you a payday loan, your lender will study your finances and review your personal situation. To do this, you will provide him with a list of important documents. Moreover, this approach contributes to the strengthening of consumer rights, which requires banks to check the creditworthiness of their future borrowers, before providing them with explanations about the payday loan.

Supporting documents for a payday loan

Supporting documents for a payday loan

As part of your payday loan application, you will have to provide supporting documents to your lender. For identity, present a front / back photocopy of a valid CNI, passport or residence / residence card. Regarding the proof of residence, an electricity, gas, water or fixed line telephone bill will be acceptable. As for the proof of income, plan your last tax notice, your last payslip or pension slip, or a certificate of family benefits if this is the case.

What are the essential documents?

To obtain a payday loan, the essential documents that you will provide are those that prove your identity (photocopy of the identity document), your last two payslips and those of your spouse, the notice of taxation for non -employees. It is the same for the receipt of electricity or Telecom that will be used to confirm your address.

With some payday loan formulas, such as the assigned credit, project documents will be requested. This is the case of the purchase order for the purchase of a car or household appliances, the quote for the renovation or development of the housing, or the purchase invoice for any other material.

Optional documents

When bankers have trouble deciding on your situation, they may ask for additional documents. This often happens when there is doubt about your debt capacity and where you will be asked to provide an amortization plan for an outstanding credit. Your bank may also ask you for statements of bank accounts, proof of ownership, a certificate of residence handwritten if you live with an individual, an act of divorce, a contract of employment if you just integrate a new business.

What are the reasons you will provide these coins for your payday loan?

What are the reasons you will provide these coins for your payday loan?

As part of a payday loan, the supporting documents allow financial organizations to study your personal and professional situation before granting you the necessary funds to finance your projects. This will be done by analyzing your marital status, your seniority in your company, your monthly expenses, etc.

In addition, the banks will check whether you are included on the file of the National Bank of Belgium, a document gathering the payment incidents concerning credits that have been granted to individuals for personal use.

Here, be aware that you have the right to refuse to add these parts to your payday loan application, but you may be denied credit. Banks have the obligation to check your creditworthiness and confirm that you are well able to repay a new credit before granting you this payday loan.

payday loan: what is the link between the documents provided and the rates applied by the banks?

payday loan: what is the link between the documents provided and the rates applied by the banks?

When you are going to apply for a payday loan, it is normal for you to look for the best rates. For credit organizations that require very little supporting documentation, the risk of default is increased tenfold, and to remedy this, interest rates will be very high. This is not the case for banks that require a large number of documents, because they will allow him to study your personal situation and your budget, including your monthly expenses, your debt capacity, your rest to live, and to see in you a good customer who can very well pay the monthly payments while preserving a certain comfort of life thanks to a payday loan at low rates.

Installment Loan – Warranty Claims and Acquisition Loan with Monthly Installment

Since the installment loan is usually taken for the purchase of consumer goods, he is called at the banks also consumption, – consumers, – or purchase credit. The loan is paid directly as a sum, which can be between 500 and 7000 euros. With a constant amount, the monthly repayment installments are set. The loan installment is made up of three units: the interest and the processing portion benefit the bank. The redemption portion is due for the repayment of the borrowed loan amount.

The duration of the repayment, which is between 12 and 84 months, influences the interest rate. The borrower can set the term according to his personal self-assessment, so that the repayment installments do not burden him too much on a monthly basis, but the repayment does not last too long. Because with a short term, the total cost is lower, and of course, the rates are higher.

The bank will charge a processing fee for processing the credit procedure. This fee will either be deducted from the withdrawal amount or added to the redemption amount. If banks do not charge a processing fee, you should investigate the offer for hidden costs.

The annual percentage rate fixes the total cost in the year and must be disclosed open by the banks and savings banks. The annual percentage rate of interest is influenced by the processing fee and the payment price . The interest and redemption settlement dates, the repayment rate and the repayment start date are also relevant for the annual percentage rate of charge.

The installment loan can be requested for free disposal, but is also possible as a special purpose loan. In this case, the sum may, for example, only be used specifically for furniture or vehicles.

At any time, the borrower may make a special repayment or a full repayment. Such unscheduled repayment must be agreed separately.
An installment loan is in most cases associated with an entry into the bank.

Up to six months after receiving the sum, the borrower can terminate the loan with a notice period of three months. However, in this case, the bank may retain the processing fee and charge a fee for the termination.

The bank is entitled to terminate the loan agreement on three conditions:

  1. Two consecutive monthly installments were not paid.
  2. There are 5% or 10% arrears of the nominal amount.
  3. The bank sent a warning to the borrower twice or threatened to terminate the loan.

The installment loan can be requested conveniently online. Thereafter, the contract will arrive by mail and the return of the signed loan offer is then binding.

A loan calculator helps with the realistic self-assessment, which affects a tolerable monthly installment.

The borrower must have a permanent job, be of legal age and have no negative bank entry.

In order to have to take credit in old age, you should hedge early. Here it helps to make insurance comparisons to different variants of pension insurance. A variation is here as the  pension insurance is another option would in turn the. Life insurance (this end, a tip: If you are in possession of such insurance and wants to advance in cash . Convert the termination often associated with high losses can sell life insurance to via special providers and thus usually receives higher amounts).

Excellent Christmas with micro-loan

Do you know what unites everyone before and after the Christmas holidays? Of course, these days we all need money more than at any other time of the year. If you still lack urgent money for Christmas expenses, our website is at your disposal. Spending Christmas expenses can be very complicated. Our portal offers you the possibility of receiving a quick mini-credit online in just 15 minutes. We believe that you would like to be able to enjoy a large amount – up to 1200 euros for any gift or tax pending. The quick money will help you take advantage of a big Christmas dinner, make the necessary purchases, and in general it will give you a festive Christmas atmosphere to feel good.

HOW TO GET QUICK MONEY?

To fix your situation, go to the website of the microfinance company and request your microcredit. You only have to spend a few minutes filling out a form with easy questions. Then you have to wait a bit for the company’s specialists to check your application. The answer will take less than 1 minute. It’s much faster than asking for a loan at a bank and providing paperwork, right? Then, you will receive the desired amount online in fifteen minutes on your bank card. We will not ask for so much documentation or a lot of time or endorsement to loan you a few hundred euros.

Well, then you have to think about how much money you exactly need, and when you can return it. Indicate the desired amount of your micro loan, the preferred return date or the monthly fee. The reliable system will be responsible for making all the necessary calculations.

ADVANTAGES OF A 24H ONLINE LOAN 

If you are interested in knowing the advantages of a quick loan, now we are going to explain them to you.

In the first place, you will enjoy excellent interests, some of the lowest in the market. We also give you the option to extend the payment terms of your loan. We give you an amount of 50 to 1200 euros, and the more money you request, the lower the interest rate will be. You can return your loan using a debit card, through a bank transfer, or by entering the money in cash. You choose the option that best suits you.

In case of paying with a bank card, payments will be made through the MasterCard or Visa payment systems. On our website, we explain in detail all the procedures to follow to know how to return an online loan. It is noteworthy that this form of payment is very convenient and fast. It will help you save time so you do not get distracted from your important issues during Christmas parties, and in general.

On the other hand, if you wish to transfer the money to a bank account, you can do so from your computer or mobile phone, by accessing your bank remotely, or in person at the bank. It’s fast, it’s safe, and it’s a widely known form of payment.

Another option is the cash income in the financial institution, with which the microcredit company works.

And the most important thing is that when it comes to requesting your quick money, you will not be asked for as many requirements as in a bank!

WHAT ELSE DO YOU NEED TO KNOW ABOUT AN ONLINE MICROPRESS?

By requesting an online microcredit, everything will be quick and they will treat you in a friendly way. You can return your money within the established period, or request an extension for the return of your loan. Different companies have different conditions, but we assure you that our conditions are developed based on a long financial experience, and we always try to satisfy the needs of the client.

Whenever you need it, you can get in touch with our fast money online company , and we will explain in detail how to act in a certain situation. We are interested in you can always trust us and know in a safe and transparent way the situation of your loan, how to pay it, when to pay it, and know the exact amount that remains to be paid. Without small letters, the way they spoke and without deception. Enter our website and see for yourself!

What are the differences between loans and credit

Many people who worry about financing of any kind often wonder what the difference between a loan and a loan is. Are there any differences at all?

What does loan and credit mean?

Many people who worry about financing of any kind often wonder what the difference between a loan and a loan is. Are there any differences at all? If you start from the definition , there is no difference. For loans and credits are always about making certain things available. A loan or loan does not always have to be in cash. The liability remains always the same in all cases. This liability is the refund of this service used. Sometimes the normal refund is also expected to be an expense allowance. This compensation is called interest. Both a loan and a loan are only for a certain period of time for use. Characteristic types of loans include installment purchases, loans and cash advances.

Why are loans and loans differentiated anyway?

It is common anyway that in general use loans and credit is distinguished by many. In some cases, a loan is called a loan if it is closed over a longer period of time. With a loan and with the credit, as now to understand there is no deviation is called a contract of debt. A contractual contract is the part of private law that organizes the obligations of both natural and legal persons. The only difference between loan and credit is that a loan is given in a fixed amount. And the period is also fixed.

Who can get any loan or credit

Anyone with a personal income of legal age can in principle get a loan or credit. When a loan or loan is taken, it is also necessary to ask the Schufa ( protection association for general credit protection ). In the usual loan and loan agreements, the lenders want to ensure that no previous debt has been deliberately made and whether there is a security to get the loan or the loan back. For many loans and credits, a positive bank statement is a basic requirement.

What can be a loan or a loan?

Loans and loans are always contracts where a loan or borrower transfers money or other useful items for a period of time. In the case of a loan in kind, a loan fee as well as the return of the similar thing that has been handed over are demanded back. This means that the person who has taken a loan or credit has to repay the debt or an equivalent item of trade. In any case, it is advisable to seek advice from a bank of his or her own. Each bank has, in addition to the basic terms, its own rules on the various options of a loan or loan.

Mini Loans and Mini Quick Credits from 100 to 900 euros

We continue to familiarize you with the most popular banking entities in the consumer market of microfinance in Spain. To your attention, the young, but reliable company, with domicile in Madrid that offers fast mini loan services for individuals.

Yes, many competitors propose fast, short-term money without papers. But, unlike many other organizations that provide similar services, the Savso has a great distinctive feature (in our opinion). Let’s justify what we want to say!

On the homepage, you will see a very practical calculator with which you can easily see the amount of your future commissions. Yes, the company does not hide any secret interest and fees from its customers. You can get 100 to 300 euros, with the primary treatment. If you have successfully redeemed the first loan from Savso, you will soon be able to give the next loan, in which case you can safely ask for the amount of up to 900 euros. It’s not bad, right? But, however, the main advantage is its flexible repayment term. From 13 to 26 weeks – that is not 30 or even 45 days, as in other companies.

Therefore, we will find out the size of the clear and transparent commissions in this example.

Let’s say that your friend Manuel took a microcredit of 100 euros for a minimum period – 13 weeks. In this case, the amount of your payment in excess to 55.74 euros, equivalent to 2229% of APR. As a result, he will have to return € 155.74, (if we take into account that every week Manuel will have to pay a commission of € 11.98). The first weekly payment will be charged to your debit card after 7 days from the loan start date. All subsequent payments will be deducted automatically from your card on the corresponding day of the week, even if it is a holiday.

You can ask – why should the client pay every week, and not at the end of the month? The management of the company explains it this way – they just did everything possible for your convenience. Judge for yourself – each end of the month we have a large amount of mandatory payments, starting with car and credit cards, municipal and much more. To avoid all the stress and alleviate this financial burden, they decided to charge a fee for a loan every week. Therefore, you will not realize how to pay your weekly contributions. Well, now we can understand why your friend Manuel not only was able to pay all the expenses at the end of this month, but also allows to buy a new TV.

It is worth noting that, of course, the longer the term of the loan, the lower weekly rates. See for yourself – thanks to a calculator on your website. Another interesting feature is that it is not necessary to show them your labor income certificate. It is sufficient to propose a certificate of receipt of any income, (a pension or unemployment benefit, for example). In addition to the proof of your solvency, what you have to be of legal age and have a residence in Spain.

Also, it will not give you a loan if you have outstanding loans, and if you do not have a bank account and debit card.

Despite the apparent loyalty of the conditions, do not forget responsibility. Like other microcredit organizations or banks, in case of delay or non-payment, you will have serious consequences.

Before asking for a micro loan, think if you really need it (our advice). If you have decided that you want to tie the financial commitment, follow this algorithm:

  • Go to the website savso.es and select the amount that interests you and the most suitable term for you. There you will see the amount size of the commission.
  • Fill in the required information (and keep in mind that if you provide false information, you do not escape from the criminal)
  • Wait for the administrator to call you to confirm your information.
  • For a few minutes (maximum 24 hours) you will receive your money immediately in the bank card in case of approval.

So, now you know more about the current options to solve your financial problems. If you have them, we recommend them without hesitation.

The quick way to get a loan – Online loans

Sometimes getting a loan becomes an emergency and, while you can get loans quickly, you need to know how to look for them and where. Currently, thanks to the Internet, loan comparisons are made quickly and conveniently, and online loans are the most demanded by the entities’ clients, whether they are new or they have been working with the same entity for a while, which has many advantages for the people who request a loan.

The loans that are granted online are the easiest way to get money quickly. Investing a little time in looking for the loan and the conditions that best suit you can get a loan the same day, without needing all the procedures that a bank requests when going in person to request a loan. In addition they are more discreet and some of the explanations that should be given to a financial entity in a physical way are not necessary.

At present, several well-known banking entities offer the possibility of requesting an online credit, which makes it much easier to obtain and offers advantages both for the entity and for the client. The convenience of being able to compare several offers of loans online ensures the possibility of contracting the loan with the best conditions and offers a greater speed than the loans that are requested in a conventional manner.

When applying for an online loan you can opt for microloans, that is, a small amount of money that is returned the following month, as if it were a credit card. These microloans that are requested online are the most appropriate in the moments in which it is necessary to face a timely payment and that amount is not available on the date it is needed although it is possible to have it after a few days with what will be possible to return it.

Where to apply for a quick credit online

The approach of the holiday season, the need to update the costumes, the repair of the car or motorcycle, etc … It does not matter so that a few hundred euros is urgently needed. Often we are all in urgent need of quick money, there is no doubt. But what really intrigues us the most is where exactly to go to apply for a loan? In which microfinance institution do we trust? Yes, taking an online credit today is not a problem, since only in Spain there are around a hundred lenders. How to decide and not waste your time? To find these answers will help you as always.

Yes, in the case of banks, we can be satisfied with the information on the official website of the company, then what to do with microfinance institutions? In addition to everything, banks are gaining a reputation over the years, and opinions about their services are distributed to all media, and can also be heard through our friends and acquaintances. So taking a look at the bank’s reputation is much easier than believing in a positive critique of a microfinance company. Everyone knows that there are scammers among the moneylenders and, on the other hand, opinions on the Internet can be bought. Therefore, what lender should we look for to obtain an online credit?

First, the lender must be in the microfinance market in Spain for at least one year, preferably two or more. Over the years, a good company always accumulates a lot of real assessments of their customers, plus people must ensure that this company is truly responsible and has decent and honest conditions. The older the company is, the more information you can find about it and form your own impression. In general, good microfinance companies have nothing to hide, and they publish information about the company’s history on its official website. Please consider this, the more documentary information can be found on a potential lender’s website, the better.

In addition, a decent company will not hide a “secret” commission and fees. During the use of loan simulator on the main page of the site, when you specify the desired amount and the repayment term of the credit online, you must show the actual amount of the final payment, taking into account the APR. Hide fees and commissions indicates that It is a scam company. The procedure for the calculation of all commissions must be written in the “Conditions of the loans” on the company’s website. If not, this is a strong reason to think about the integrity of the company.

The third aspect and characteristic of the prestige of the lender is that he has true opinions of clients. Surely, you have heard some negative comments about one or another microfinance from your friends or acquaintances. In general, if people leave these comments and views quite regularly, then maybe you should not trust this company. Yes, there are many opinions that can be bought today, and used by the employees of the lenders. However, it is very easy to distinguish false from true opinion. This is more easily visible in social media. If the opinion is too long and detailed, it is unlikely that it can be trusted. It is also important to pay attention to the person who wrote it – the user account must be simple, open and more plausible, which makes it more likely that the person is real.

You should also pay attention to the quality and quantity of advertising that the lender advertises on radio, television and the Internet. The greater amount of publicity and better quality means that everything is going well in that company, and that you have enough money to make a commercial at a high cost. A good company will not spare money on search engine advertising, as it is very easy and open to contact and provide feedback. The official website of the company and its group on social networks is a sign of openness to dialogue with its customers, as well as the willingness to work with any revision.

Do not trust those who promise mountains of gold. In general, the limit of online credit in microfinance institutions does not exceed 2,500 euros, with maturities of up to 24 months. Annual Commission (APR) should not exceed the average in the country. And, by the way, do not be afraid of the promotion “the first free loan”, since it is really a good opportunity to attract new clients and for you to have the opportunity to know the credit conditions of the company and to form conclusions about if you must continue using your services.

And, finally, do not neglect to check the requirements for the provision of credit. In some companies the requirements may vary, but absolutely all legal companies require the same four requirements: document the presence of citizenship or residence of Spanish (DNI or NIE, necessarily valid), over 18 years of age, the presence of the regular income confirmation, and personal bank account, as well as a mobile phone. No company will provide an online credit to the client that does not meet these requirements.

Then, now you know the secrets of correct selection of your lender. In our portal you can read more about the most recommended lenders and compare their services. We wish you all the best in a financial field!

Loan for auto repair

It can always happen that the car suddenly strikes. For example, the car makes strange noises, a symbol flashes or, in the worst case, the vehicle even stops directly on the track. In these and similar situations the way to the workshop is inevitable. But such a repair can be more costly than initially thought. So it is quite possible that the amount that is in the current account, is not sufficient to pay for the workshop costs. A remedy for this problem creates a loan, so the car is then certainly quickly ready to go again.

Cost of a car

A car regularly brings with it high costs that have to be handled. In addition, there are also repairs that often strain the wallet beyond measure.

The cost of a car is not to be despised. So it’s not just the purchase price that a budding car owner has to pay and often is considerable. Because the ongoing fuel costs are to be paid. But that’s not all, so join here, for example, also the necessary insurance amounts and the vehicle tax to do so. All in all, this results in a not to be despised sum. In addition there are the recurrent costs for the inspection and the TÜV.

In addition, as a car owner, you have to expect the various repairs to occur. This may, for example, also be the replacement of wearing parts, as well as a very large repair, in which a variety of things must be replaced. However, this can certainly be a problem, because not, for example, has several thousand euros for free use in his checking account. Nevertheless, it is urgently necessary to have the repair done so that the car is ready to drive again.

Credit for the car repair

With the help of a loan, it is possible to pay for the repair costs incurred. As a rule, either a disposition or installment loan is used for this purpose.

If a major repair is suddenly necessary, it may not be possible for every driver to pay for it immediately. A way out of this dilemma offers a loan: Thus, it is easily possible to pay the accumulating sum. For example, installment credit is one of the most frequently used loans in addition to the disposition credit.

But not only when a larger sum is needed, the inclusion of a loan offers. For example, even with a smaller amount it is possible to take out a loan . After all, it can also happen that the repair is not very expensive but at an unfavorable time. For example, after Christmas, when a large number of bills have to be paid in addition to the beginning of the new year, car repair is very often inconvenient.

credit Facility

The so-called Dispo is an uncomplicated, very flexible way to pay for the car repair. However, this often involves high interest rates.

Here, the prospective borrower negotiates with his house bank a specific framework in which the own current account can be overdrawn . Unless an explicit time is mentioned here, at which the dispo must be repaid, the borrower can take this time. So it is up to him, when the repayment is made. In addition, there is no need to look for specific amounts here. So it is quite simply always some money left in the account until the Dispo is eventually balanced. If a new emergency occurs and the disbursement credit has not been reversed, it can be used again at any time without informing the bank about it. However, this enormously high flexibility also has its price: Dispo is one of the most expensive types of credit, which is why here with a fairly high interest rate must be expected.

installment loan

In the case of an installment loan, the pre-agreed installments are simply repaid every month during the term .

A very good alternative to the Dispo is the installment loan. This is a classic loan option used by a large number of borrowers. The procedure for such a loan is quite simple: For example, it is determined during the credit conversation with the bank, among other things, what the budding borrower needs.

This involves discussing the conditions for repayment. To a certain extent, the borrower can choose the duration and the monthly installments. The latter remain the same throughout the entire runtime. Only the first or last rate may differ slightly from the other amounts. However, this is usually only the case if the loan amount together with the fees incurred results in an amount that can not be divided equally between the respective installments. Accordingly, an installment loan is a highly predictable loan.

In contrast to the discretionary credit , the interest rate here is usually much lower. So it is certainly not surprising that many borrowers prefer such a loan to a Dispo.

requirements

To obtain a loan, the borrower must meet a variety of conditions. This includes, for example, a good credit rating .

However, in order to be granted a loan from the bank, the prospective borrower must meet various requirements. This includes, for example, a safe, regular income. Likewise, the banks demand a good credit rating as well as a positive bank statement. In addition, it is also customary for a German checking account and a permanent German residence to be present.

However, those who do not fulfill the desired conditions do not necessarily have to forego a loan. If, for example, sufficient collateral is available, it is quite possible that the bank will nevertheless forgive the desired loan. The collateral includes, for example, Bauspar contract or a property, such as an already paid house. Depending on the value of the car, it may also be feasible to specify it as collateral.

Or simply a guarantor or a second borrower is called in . Of course, the person concerned must also fulfill the various requirements. If that is the case, there is certainly nothing standing in the way of a loan and of course the repair of the car.

Payment protection insurance

Some banks offer the completion of a residual debt insurance. Here it is advisable to rethink your own individual situation and then decide for or against the insurance.

While some banks, depending on the loan amount and situation of the borrower, insist on the conclusion of a residual debt insurance, other banks offer this optional. It should be kept in mind, however, that one must settle the amounts for the insurance in addition to the monthly installments of the loan.

It is also important to consider whether the conclusion of such insurance is worthwhile for yourself. A residual debt insurance occurs in case of unemployment or death of a borrower. For example, if a 20-year-old single only receives a small loan amount to handle the necessary car repair despite a current financial shortage, such insurance may not be necessary. By contrast, in the case of a married father, the conclusion of such insurance would be advisable. Accordingly, the very personal situation should always be included in the considerations.

Increase real estate loan: One possibility is the home savings loan

Your own four walls are the dream of many people. However, to fulfill this dream quite a lot of capital is necessary. The required sum can, however, come about in different ways. For example, it is very popular to combine a real estate loan with a home savings contract.

Home Savings Contract

Building savings contracts are available at different rates and can be used for a real estate loan as soon as they are ready for assignment.

Home contracts are generally popular and are therefore often completed. It is quite easy to save up to a pre-defined percentage in the contract. As soon as the home contract is ready for distribution, it is possible to pay it off. However, the rationing of the contract does not automatically mean that the home contract has already been fully paid up: this is not the case. The respective sum, which still lacks the final amount, pay the building societies in this case as a so-called home savings loan.

Good to know here is that the loan is guaranteed to the respective home savings company even from the legal side. In addition, it is inheritable even to the descendants.

In addition, there is not only “the” Home contract. So there are now different tariffs here, namely the standard or fast-saving tariff as well as the long-term tariff and various variable tariffs.

Home contracts are very much in demand, for example, which do not necessarily have to be used for the purchase or construction of a property and where, for a certain fee, the saved amount can be paid out earlier if required. However, it should be recalculated well whether this approach really pays off. However, if you want to have the accumulated assets fairly quickly, then such a tariff is certainly a good choice.

Real estate loan and home loan

The combination of real estate loan and home savings loan ensures a high degree of planning security. In addition, it usually benefits from a low interest rate.

Here, the credit institutions initially give their customers a real estate loan. During the first period, however, the borrowers pay only the interest accrued each month. The remaining loan installment is paid into a home savings contract, which is concluded separately.

Once it has come to pass that the Home contract is ready for rendition, it is possible to use the home savings loan to repay the real estate loan taken out in full. The home contract, which has not yet been paid to its end, continues to run with the interest rate set in advance. Borrowers not only benefit from a favorable interest rate, but also from a high level of planning security.

Although this type of funding is very popular, it is still advisable to pay attention to the total cost. The exact calculation of the real estate loan and the home savings loan is therefore essential and is presented by reputable banks in a detailed and clear.

alternative

For example, a home savings contract can also be used to pay relocation or furniture costs or a refurbishment or modernization. It may also be possible to make special repayments.

Alternatively, however, it is also possible to include a real estate loan and simply let the home savings contract continue to run. Here, however, the financial burden has to be considered. For this purpose, one can then use the sum in question, for example, to finance the move and to buy new furniture or for some refurbishment / modernization work. However, the determining factor is exactly what purpose was agreed in the respective home savings contract. The necessary equity for the real estate financing can then come for example from accumulated cash on the savings account or savings account.

For example, if special repayments have been agreed in the real estate loan contract, it may also be advisable to use part of the sum for this purpose. However, it is absolutely advisable to read the contract carefully, as many banks only offer a limited number of free special redemptions per year. However, if you wish to pay in a higher amount or if no special repayment right has been agreed, it is first of all necessary to clarify with the bank whether this is generally possible.

If this is the case, which is a credit institution, however, a so-called prepayment penalty charge. These require the banks due to lost interest income. Thus, it is important to calculate well whether the paid special repayments are worthwhile.

Real estate financing completely without equity

Real estate financing is also possible without equity. However, the banks here pay more attention to the conditions and often require additional collateral.

However, it may also be possible to carry out real estate financing entirely without equity. In this case, however, usually not only a correspondingly high, secure and regular income, but also more collateral is needed. Likewise, as with equity financing, a high credit rating or a positive bank statement is required.

Negative bank information?

Even with a negative bank information, it is possible with a guarantor or second borrower to obtain a loan. Alternatively, there is still a bank loan.

However, if there is a negative bank information, then it is difficult with the real estate financing: Mostly forgive the banks in such a case, no loans.

However, those who do not want to move away from their home purchase or construction plans and want to fulfill the desire of their own home immediately can, for example, fall back on a guarantor or a second borrower. However, it also applies here that the person concerned must fulfill the respective requirements of the banks. With a guarantor / second borrower, the likelihood of lending tends to increase enormously. As a rule, it is no longer a problem to obtain the desired loan.

However, if neither a guarantor nor a second borrower comes into question, it is still possible to look for a non-fictitious real estate loan. Here is also paid to a sufficient creditworthiness of the prospective borrower but there is no bank  information. Accordingly, it is completely irrelevant here, if any negative entries are present. However, these loans are usually more costly. Schaffa-free loans are usually not offered by all banks. Online, as an example, but you will find a wide selection.

Conclusion

The increase of a real estate loan with the help of a home savings contract is a popular, common method. Alternatively, it is advisable to use the home contract for relocation or modernization purposes.

It is therefore easily possible to increase a real estate loan with the help of a home savings contract. Here the home savings contract is an important part of the financing plan.

In general, it is of course also possible to retain the sum that was saved in the home contract, and hereby, for example, to pay for the move, new furniture or a refurbishment / modernization. Decisive, however, is the purpose described in the contract. In addition, part of the amount may also flow into special repayments.

Furthermore, there is also the option of real estate financing without equity. Here, however, the banks are increasingly paying attention to the fulfillment of the necessary conditions.

Even with a negative bank entry, the dream of a home can still be a reality: here, for example, help a guarantor, a second borrower or a bank-free loan.

Before the loan is granted, the bank conducts a credit check

A loan without a credit check – for many consumers who are short of cash, that sounds very tempting. But beware, reputable credit intermediaries and banks will never lend money to a client without having thoroughly checked their credit worthiness. Through the credit check before lending, the bank wants to prevent defaulting during the repayment phase and leaves the bank stuck to its claims. The audit will never prevent a loan default, but it will sort out less creditworthy clients from the beginning.

The information required by the bank to determine the applicant’s creditworthiness comes from two sources: from credit reporting agencies such as bank and from the applicant itself. The Bank receives information on its current liabilities from bank in addition to personal information about the consumer and past payment behavior. For example, in the past, if the claimant has failed to settle an invoice on time, this is noted in his bank file and has a negative impact on credit quality. Credit bureaus do not store any data about the client’s financial circumstances. Since these are very important for the lending, the customer must send this information to the bank itself. The documents required by the bank from the potential borrower to prove income depend on the client’s profession.

For workers and employees with regular incomes, it is sufficient to prove the amount of monthly income on the basis of the last proof of income. Since self-employed and freelancers do not have a regular salary, they have to prove their income otherwise. Depending on the bank, these potential borrowers must provide the bank at least the latest income tax assessment and a current business analysis. In addition, most banks require from their potential customers a completed self-report and the bank statements of recent months. With the help of all this data, the bank creates a household bill for the customer. In this way, the bank determines the maximum monthly repayment installment, the term and interest amount for the loan. The better the creditworthiness of the potential customer, the lower the interest which this customer has to pay for his loan.

Who get grants not loans because of their poor credit rating of the bank consumers should stay away from urgently online loans have no credit check. Behind these offers are often fraudsters. After the unsuspecting customer has paid a high down payment to the rogue, it usually never comes to pay the desired amount of money.