Risk of over-indebtedness: Ready for vacation and the cash register is empty? Or the car urgently needs to go to the workshop and the account does not allow for major repairs? These are, like many others, reasons why consumers are in urgent need of a loan and unfortunately make one or the other credit error when looking for offers. The worse the credit rating, the sooner it happens that you get involved in unfavorable offers. Even in times of relatively low interest rates, one should be careful not to commit one of the errors explained below and get into over-indebtedness:
- Bad credit rating due to negligent payment behavior
- Over-indebtedness due to too many loans
- Too many installment purchases
These should be paid even more attention, the higher the investment, because even the loan interest rates are still in a very low range. How can such credit mistakes be avoided, so that the next urgent purchase does not fall through negligence into the water?
Which loan is the right one?
There are a variety of types of credit, each targeted to the purpose. The terms instant loans, loans, car loans, etc. make this clear. It is obvious that when a car is bought, it is not looking for real estate financing, but a consumer credit with the purpose of buying a car. Each type of loan has different maturities, interest and principal, all of which is geared towards the object to be financed.
Regardless of which loan you want to use, it is possible to have a good credit rating. This does not only mean the general payment behavior, which is clearly shown in a report by private credit. Without an information, no bank will lend and if there are negative entries in it, it may become impossible to get a loan somewhere.
Seductive offers for consumers
The Internet makes shopping as easy as getting new money. Anyone who likes to buy the latest electrical and electronic equipment, often takes the so-called 0% financing of online shops or electronics companies, because it is more convenient to pay on installments. But these too are loans and they are registered with the private credit just like everything else. Even if such a financing method is not listed there as a “credit”, the personal score value is influenced by it. He can make sure that the next real credit problems arise.
- Score value: It is calculated by the private credit from all available entries by a mathematical-statistical procedure. It reflects the likelihood that a loan will be serviced by the consumer, ie repaid. The higher the score, the better the creditworthiness!
Many a bargain is also happy to be paid through the account and if there is not enough money, it will be covered by a credit line. As you can see from this word, it is also a loan. Unlike other consumer loans, however, interest rates are much higher. The banks are very well paid for the quick disposal of the money, which for them means a minimization of available money. Who as a consumer once brought the account properly in the minus, that will probably not be able to compensate again so quickly.
One thing is fundamentally important: every consumer who wants to take out a loan should definitely use a reference calculator for loans. There are a lot of them on the internet and that’s a good thing. It is important to use more than one to get as broad a range as possible. This definitely does not cost anything and helps to find the next loan on favorable terms.