Archive August 2019

Swiss Credit Requirements – How To Get Your Loan?

Swiss credit has become a symbol of financial freedom for many German consumers. In some circumstances, these allow them to take out a loan even if they have a negative credit bureau. But this freedom can not be strained unconditionally. There are Swiss credit requirements that are mandatory and that are not negotiable.

Reputable providers will never apply for a Swiss loan on a flat-rate basis. You will always stress that this type of lending can only take place under certain conditions. Therefore, it is important that the borrower knows exactly which conditions for a Swiss loan must be met.

Swiss credit requirements in detail

Swiss credit requirements in detail

Even if a Swiss loan can be awarded even if the creditworthiness of the borrower is not quite as optimal, this does not automatically mean that a Swiss loan will be given out in all conceivable circumstances. But on the contrary. The lenders are already looking very closely at how high the credit risk is with regard to lending. That is why Swiss credit is classified seriously.

No credit intermediary or bank would ultimately want to give up the repayment of the money from the loan. Therefore, Swiss loans are only awarded if there is a safer repayment by the borrower. And in order to guarantee this safe repayment, it is looked at exactly before the award of the loan, which requirements the borrower for the borrowing can show.

Since a Swiss loan is a loan that can also be taken on negative traits in the credit bureau, it is natural to first of all analyze these negative traits in the credit bureau in more detail.

When is a Swiss loan possible despite negative credit bureau?

When is a Swiss loan possible despite negative Schufa?

A negative entry in the credit bureau has accumulated quickly. Whether it’s a delay in repaying an invoice, an open mobile bill, which may even be considered contentious, an unpaid insurance premium, or a default loan credit default. The creditors are relatively quick when it comes to depositing such things as a negative entry in the credit bureau of those affected.

For the award of a Swiss loan, this means that the lenders look closely, which negative entries can be found in the credit bureau or in other information files. A late-paid bill or an open mobile bill does not necessarily mean that a Swiss loan is rejected.

Rather, it is the case that with such soft negative criteria quite a blind eye can be closed and a Swiss loan is granted, as far as all other requirements for the lending can be met.

If, however, entries can be found in the credit bureau that indicate credit cancellations, account cancellations or several negative entries for which payment obligations have not been met, it will be difficult to obtain a Swiss loan. Because then the risk of default for the lender is significantly increased. And this risk is reluctant.

The higher the default risk, the more difficult it becomes for the lender to recover his entire money from the loan. Especially if there are defaults and the money must be sued by the court. If there are several creditors, because other payment obligations have not been met, the creditors are always served in order. If the loan was last taken, the lender gets his money back from the loan last.

When is no loan from Switzerland possible?

A Swiss loan is always hopeless when the negative entries in the credit bureau or in other information files focus on affidavits, bankruptcies or even arrest warrants. The legislator stipulates that no credit may be granted for such entries in the credit bureau. Debtors who have such entries in the credit bureau must not lend themselves money, because first of all the creditors must be served, who are still waiting for their money due to the bankruptcy or the sworn statement.

And this servicing of creditors must not be done with the help of a loan. In the case of an arrest warrant, no credit may be taken to avoid a risk of absconding, for example by making money for the escape through the loan.

The income as a prerequisite for a Swiss loan

The income as a prerequisite for a Swiss loan

A Swiss loan must be well secured. Since this is not possible through the credit bureau, the income for such a loan must be particularly good.

So the income must be obtained regularly, ie monthly. It must be a fixed income, which does not fluctuate monthly and which comes from a job with social security contributions. If premiums or other allowances are to be received, which may be paid by the employer as an additional charge through installation work or redundancies, only the fixed income will always be used to assess the income for the loan. Allowances, bonuses and other payments are not included in the calculation of the loan.

The income must be proven when applying for current salary certificates. As a rule, this income must come from a permanent job. It must be well above the seizure allowance and should be purchased for at least half a year.

Our Note: There are certainly some credit intermediaries who accept a lower income. However, it always depends on how high the loan amount is and how the loan can be hedged for repayment.

Which collateral is additionally accepted?

Which collateral is additionally accepted?

Depending on loan amount and income, some lenders require additional security from their borrowers. As security come z. B. endowment insurance or a guarantee in question. Such collateral should only be offered by the borrower if the lender requires it in order to ensure lending. Otherwise, it is not advisable to offer such serious collateral. Because they would make no sense, even if you belong to the Swiss credit requirements in the broadest sense.

Material collateral such as antiques, cars or real estate are only partially requested by the credit agencies. Here, the current time value must first be determined in order to be able to classify its value. As a result, intermediaries prefer to focus on insurance or on a guarantor because their value can be assessed fairly quickly.

Other requirements for a Swiss loan

Other requirements for a Swiss loan

In addition to the prerequisites for borrowing, the following general conditions apply:

  • A minimum age at the borrower of 18 years
  • A permanent residence in Germany
  • A german bank account

Only if these additional Swiss credit requirements are met will a lender be found who agrees to a loan. If the admission of a Swiss credit does not succeed, it is recommended not to look for other alternatives of the borrowing.

These are usually not serious and do not ensure that a financial security arises. Rather, a rejection of a Swiss loan is a clear sign that borrowing is currently not recommended. Because even if a Swiss loan does not work, then other credit models will not work. Borrowing is definitely not recommended.

Special loans go into special circumstances.

Under the classification “special loans”, you will find loans that stand out and differ from other loans as a result of the isolated loan nature. Special loans are characterized by special conditions or a special purpose.

Civil servant loans are granted exclusively to civil servants and public employees. The health loan is specifically used to finance medical and cosmetic surgery, which is not covered by health insurance.

Special loans are just special! Find the right loan for the right occasion. We will continue to build and expand this section in the future. It is always worthwhile to stop by.

Which loan for which purpose?

Which loan for which purpose?

Every consumer knows that there are loans and how a loan works. An actor in business lends money from another actor. The borrowed money he pays then with or without interest in installments or in a sum back. So far so good. But when is actually which loan is recommended or necessary?

In the following overview we show the most important loan types, and which loans can be used when. The question is, of course, who can borrow. The requirements are the same for all institutes:

  • The borrower must be of legal age.
  • The borrower must prove his residence in Germany.
  • An account with a German bank is also necessary.

The disposition credit

The most common is the disposition credit, Dispo for short. The bank will grant the account holder an overdraft line. He can also withdraw money or make transfers without having a credit balance. Usually, the Dispo is up to three net monthly salaries. It is up to the bank to decide whether to overdraw the account. For private individuals, there is neither a loan agreement nor collateral provided. Here the Dispo differs from the overdraft, the disposition credit on a business account.

If the financial position of the Account Holder deteriorates, the Bank may, in whole or in part, cancel the Dispo, subject to a reasonable time limit. If bank customers still have dispositions beyond the granted credit line, this is called an overdraft. The bank can tolerate this, but does not have to.

Disbursement loans are suitable for bridging very short-term financial bottlenecks. But because of the oversized variable interest rates, they are not a long-term solution. Add to this the risk of the credit spiral. The system does not have to be returned, the account holder is in danger of losing more and more every month.

The personal loan

Personal credit is primarily used for consumer finance and is not earmarked, with the exception of car loans. Depending on the bank, the loan amount is between 2,000 and up to 100,000. At maturity, the borrower has the choice between twelve months and up to 120 months. The interest rate is fixed for the entire term. The amount is usually based on the creditworthiness of the borrower and the repayment term. However, some institutions also calculate interest-free and maturity-independent interest rates.

The legal basis for the personal loan is a written credit agreement. The salary assignment serves primarily as security. The repayment of the loan is made in equal monthly installments.

The car loan

For the car loan is that it is earmarked for the purchase of a car, motorcycle or motorhome issued. In terms of interest rates, it is slightly below that of an installment loan for free use. The background is that the car serves as security. If the borrower can not repatriate his loan, the bank sells the car. This would not be possible when financing a holiday trip.

The balloon credit

The balloon loan describes a special variant of the car loan and takes its name from the last installment, the so-called balloon rate. This is inflated compared to the rates during the term.

With a balloon loan, car buyers and dealers determine what the residual value of the vehicle will be at a certain point in time. Although the loan is closed over the entire purchase price, the installments are only calculated on the difference between the purchase price and the residual value. This makes them much lower. At the end of the agreed loan term, the buyer now has three options:

  • He returns the vehicle with its residual value to the dealer. So the balloon loan is a bit like leasing.
  • He pays off the last installment, the balloon rate, in one sum, the vehicle finally becomes his property.
  • He completes a follow-up financing for the last installment.

The official loan

Many banks advertise with special civil servant loans. These are classic installment credits at your disposal with slightly lower interest rates. Civil servants are non-terminable under normal circumstances. This eliminates the risk for the bank that the borrower can not repay the loan due to unemployment. This credit advantage translates into lower interest rates.

The loan for self-employed

Many banks grant self-employed no installment loan. Self-employed persons can not submit a salary assignment unlike employees. This means testing other collateral, which in turn is time and labor intensive. On the other hand, a fluctuating order situation can make the repayment questionable. The additional expenses and the higher credit default risk can be paid by banks, which provide loans for self-employed, by a slightly higher interest rate.

The framework credit

The framework credit

With a framework credit it concerns a middle distance between Dispo and installment credit. On a sub-account, the bank grants the customer a credit line. As a rule, the salary assignment serves as security. If the customer now requires additional liquidity, he can use this up to the amount of the credit line. Interest accrues only on the loan actually used, not on the whole framework. The loan agreement also provides for a partial monthly repayment of the loan. Repayment is made as a percentage of the credit drawn, but is based on a minimum rate.

The interest rates are well below the interest on a credit line, but are also variable. As a result, and through the agreed repatriation, a framework loan may well be worthwhile for larger purchases.

The construction financing

The construction financing

Mortgage lending serves to acquire real estate or renovations. These are collateral secured loans, means that the lending bank is entered as a creditor in the land register in the context of a land charge order. The lion’s share of this product segment is covered by annuity loans. The borrower agrees with the bank a period for the fixed interest rate. This is usually shorter than the entire loan term. During fixed interest, the borrower pays a steady monthly installment. This consists of the interest rate and the initially agreed repayment. With each repayment settlement, the proportion of interest payable within the installment decreases as the loan decreases. The repayment share within the fixed rate therefore increases.

The modernization loan

Under this heading, banks offer real estate owners special loans for refurbishment and modernization. The loan amount depends on the bank and can be between 2,000 and 100,000 euros. The terms are between one year and 20 years.

The special feature of these loans is that they must be used on the one hand earmarked for the renovation. On the other hand, the bank waives the land charge order. Although the interest rates are slightly higher than a secured with a mortgage loans, the interest rate for an installment loan but still significantly.

Parental Loan – Parental Allowance Loan

Becoming on maternity leave is an extremely pleasant time for every female, but unfortunately, she could be disturbed by bad finance. What we are going to talk about is frequently not enough to cover all home expenses when you have small children. With no help of a partner or even loved ones, a woman depends on himself.

One choice is a loan on maternal leave. They do not want to give loans to mothers too much because their particular income is in most cases lacking and this client becomes dangerous for the banking company. You are able to go for a non-bank loan which is not so high.

Maternity loan – non-bank loan

money cash

If you don’t have borrowed outside the bank, an individual worry. We recommend that a person be attentive and think about whether this loan actually pays off. Independent graders, exactly where all the offers are all jointly, will help you choose, it is to the mommy who is interested.

If you are applying for the first time it is recommended to take advantage of provides such as the first free mortgage or seasonal events. This may not mean that you do not have to come back the borrowed money, however, you pay only as much as you lent. Not even an extra crown. This would not burden your budget.

Applying for a loan is just not difficult, it shouldn’t consider you more than 10 minutes. What things to prepare? You will need an email, the mobile phone, a valid ID credit card and your own bank account to finish the form. After submitting the application you should be contacted by cell phone as soon as possible, so keep it along with you and you can also be contacted simply by email for further steps.

 

What can I use the money regarding?

money bank

A quick maternity mortgage has the advantage that lent funds can be used for whatever you want. It does not matter whether you utilize it for a new stroller or buying gifts with regard to children. In any case, be accountable and approach your obligations responsibly. You can get into huge trouble by laxing plus ignoring the obscure.