Many customers are currently entering into a loan agreement online. It’s easy and can be done quickly. But if you prematurely conclude a loan contract, you might have some regrets later. This article shows the most important facts.
Nowadays nobody has to accept an expensive loan offer from the house bank. Because a cheap loan can be found on the Internet and there are a variety of offers. Borrowers do not even have to make an appointment with a consultant to complete the transaction.
The loan amount is quickly calculated
Because everything works online at lightning speed with a click of the mouse. The loan amount is quickly calculated and the terms printed out and read through. After that, a contract can be concluded for many offers without the annoying paperwork using the video-ident procedure.
Many consumers welcome this contemporary form of contract processing. Because nobody really has time left these days. The children have to be taken care of or there is a lot of stress at work at the moment. A fast online loan contract, therefore, benefits many interested parties.
However, there can be a nasty surprise during the contract period, especially if important details have not been considered. Then it is suddenly not possible to redeem the loan in one sum free of charge or similar unforeseen things. This does not have to be the case if the contract has been read correctly in advance and the offer has been selected according to your needs despite the lack of a bank consultant.
Compare offers before signing the loan agreement
No consumer would immediately buy the first inspected car or the first inspected house. Why should something else apply to the conclusion of a loan agreement? After all, in some cases, the cost of the loan is far from low. A comparison is associated with some effort, but the bottom line can be worthwhile.
Because in order to issue a corresponding loan offer, the bank needs some information from the prospect. The offers published online are exemplary in most cases and concern the cheapest possible starting point. However, this is not the case with many consumers.
When checking the contract terms in advance, it is advisable to ask the bank whether it is possible to make a simple condition request with financial standing. This only remains with the credit agency for a short period of time and is quickly deleted. A credit request from financial standing, however, remains saved for one year.
It is visible to everyone and has an influence on the score of the financial standing entry in the information office. In addition, consumers should pay attention to the APR when making a simple request. Because this indicates all costs that are incurred with the loan. This value can be compared to that of other companies.
These documents must be presented when requesting a condition
Even if it is just a simple condition request, some information must be given in advance. In most cases, a form must be filled out, stating the name, birthday, place of birth and current address.
Furthermore, the bank asks for further data such as the address of the employer, monthly salary and information on expenses. In addition, questions are often asked about ongoing monthly costs such as rent, installments for a car or other ongoing financing. The loan company wants to find out how much money the prospect can spend per month to pay the installments.
If a preliminary decision can already be made on the basis of the information, the credit company sends the applicant an offer of credit. This shows all the costs related to the contract. In addition, all conditions and other conditions are specified. This is mostly the result of the infamous fine print.
The terms of the contract should be carefully studied. If you have any questions, it only helps to contact the potential lender. Some companies allow renegotiations. For others, the conditions are fixed and cannot be changed. In this phase, it is advisable to have further offers sent to you by other companies and to compare the formalities with each other.
Promising offers such as loans without financial standing request
Offers with meaningful names such as loans without financial standing or loans without collateral are circulating time and again on the Internet. There are actually providers on the market that arrange a loan without financial standing requests or banks that do not require collateral.
However, consumers should pay more attention to these offers. Because in most cases these credit institutions are not based in Germany but abroad. It is then still important to know where the company is located.
However, it is true that foreign companies do not make a financial standing request. This is due to the fact that the credit agency simply does not exist in this country. Therefore, these companies do not insist on asking there.
If the collateral is also dispensed with, then a high monthly income is likely to be important. With a good monthly income, credit companies don’t need any security anyway.
Therefore, interesting offers could be among these offers. However, when advertising, consumers should always pay attention to what is in the small print. Additional costs could make the loan unnecessarily expensive. In this case, it is often cheaper to look for a guarantor or guarantor than to go into debt more than was originally intended.
There are currently a number of interesting offers on the Internet which, on closer inspection, actually offer some advantages. This is mainly due to the fact that the costs for consultants and the rent for a land-based credit institution are eliminated in the case of an online contract. It may, therefore, be possible to conclude a cheap contract online.
However, consumers should do good research in advance and read the small print carefully. A comparison often helps to get an idea of the market situation. It is important to look at the annual percentage rate when concluding a contract. Because it indicates the total costs that are incurred for the loan.