Low interest rates and fixed interest rates are attractive, that’s for sure. Mistake 4 – Only pay attention to a favorable interest rate Create a budget that lists income and expenses, plan the repayment and don’t overextend yourself. So a detailed and, above all, realistic financial plan is essential. Mistake 3 – Misjudge the financial situationĪ personal loan in Germany and its repayment can be a lengthy story, especially if you want to finance something big like a property. Not informing yourself about different options can cost you money. These include not only banks and lenders, but also other institutions such as electricity companies, mobile phone providers or the like. There are countless online loan comparison calculators that allow you to compare the best offers from different providers in Germany. Have a look at this article on how to check your Schufa score in Germany. If you are well prepared for credit negotiations and have already actively checked and improved your creditworthiness, you will have a clear advantage. The better your credit rating (also called creditworthiness), the higher the probability of personal loan approval and the approval of low interest rates. It determines not only whether you get a loan, but also at what conditions. Mistake 1 – Not knowing one’s credit ratingĬreditworthiness plays an enormously important role in the granting of personal loans. Good preparation, no hasty decisions, and knowing your credit rating is important. Mistakes can quickly creep in when applying for a personal or private loan. With the personal loan comparison, you can quickly find out what rate is necessary for your desired loan in Germany.ħ typical credit application mistakes and how to avoid them This remaining amount represents the possible amount of an installment. As a result, you get what is left over from your salary each month. It is worthwhile to compare your individual income and expenses. For 50 months, the rate is reduced to about 209 euros and for 62 months to about 170 euros. If the borrower chooses a term of 48 months for a loan amount of 10,000 euros and an interest rate of 2%, the loan installment is around 217 euros per month. This means that the longer the term, the smaller the rate. The bank calculates the rate so that at the end of the term both the agreed interest and the personal loan amount are paid in full. Three variables change the repayment and interest rate of the private loan: the loan amount, the term, and the interest rate. How do I calculate the monthly installment of the personal loan? If the personal loan is intended to pay off other, existing loans, the bank will also want proof for these. A pension certificate or a guarantee may also be required. It also needs proof of identity with a valid identification document and proof of creditworthiness. When applying for a loan, the bank usually asks for at least the last three salary statements and a self-disclosure. What documents do I need for a personal loan? If you have paid your bills on time in the past, this can increase your chances. Under certain circumstances, banks also grant personal loans to people with a SCHUFA entry. Once you have signed it, the bank will transfer the money to your account.įrequently asked questions for your personal loan in GermanyĬan I obtain a personal loan despite a SCHUFA entry? It contains all fees and additional costs and thus indicates the total cost of the loan in percent.Īfter verifying your identity and the required documents, you will receive your personal loan agreement from the provider or bank via email. The effective interest rate is also important. When comparing personal loans, pay attention to rate details such as unscheduled repayments – an unscheduled payment to repay the loan. Now select the personal loan that appeals to you most and submit the application directly online. You will then receive selected offers based on your information. For a meaningful comparison still, some personal information is necessary. Simply enter the desired amount, the term, and the intended use. To find the cheapest loan in Germany, use the non-binding loan comparison on this page. The market for installment loans is huge and the offers differ not only in the interest rate. Personal loan comparison: In 3 steps to a personal loan in Germany
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