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Preliminary agreement – credit, real estate, plots

Preliminary agreement – basic elements Preliminary agreement and mortgage Preliminary agreement for the sale of real estate Preliminary contract for the sale of the plot Preliminary agreement for the purchase of real estate How much is the preliminary contract with a notary public?

What elements should the preliminary contract contain? When is the preliminary contract terminated? What is the cost of preparing a preliminary contract with a notary public?

Preliminary agreement – basic elements

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The conclusion of a preliminary contract guarantees the conclusion of a final contract in the future, the signing of which is not possible or convenient at the moment.

The document should contain elements such as the subject of sale and the price of the subject of sale. The preliminary agreement should also find a well-defined deadline by which the parties are obliged to conclude a contract and the right JPIC crib and date of payment of the price in the form of advance payment or deposit. In the absence of any of these elements, the preliminary contract is considered null and void

If within a year of the conclusion of the preliminary contract no date is set for the conclusion of the final contract, in accordance with the Act of April 23, 1964. (Civil Code) neither party has the right to request the conclusion of a final contract.

Preliminary agreement and mortgage

Preliminary agreement and mortgage

Banks want to have full control over what we spend their money on. Therefore, if you want to take out a mortgage for an apartment or house, you need to sign a preliminary contract.

When deciding to buy real estate, we always sign a preliminary contract, which may contain any arrangements between the parties. However, you must remember that the bank does not have to agree to all conditions.

The bank granting the loan may not accept the contractual provisions or impose other solutions, and this may have serious consequences such as loss of deposit.

Remember to consult a specimen preliminary contract with a credit counselor who will check whether the individual provisions and provisions will be accepted by the bank.

A preliminary agreement for the sale of real estate

A preliminary agreement for the sale of real estate

The sale of a house or flat is usually preceded by a preliminary contract. The preliminary contract for the sale of real estate is designed to secure the interests of each party – the seller and buyer. The buyer is certain that the seller will not sell the property to anyone else, and the seller that he will receive compensation if the contract fails.

The preliminary sales contract should contain mandatory information such as details of both parties, including dates of birth, addresses and ID numbers. Regardless of whether it is a preliminary contract for the sale of an apartment or a house, the property must be precisely identified. Information on its location, nature, area, building status, and land and mortgage register number should be posted.

In addition, the preliminary contract for the sale of real estate should include the seller’s statement on the disposal of the real estate and other information regarding the ownership of the real estate, e.g. whether it is encumbered with a mortgage. If it is, a preliminary agreement should be signed for the sale of the apartment with a mortgage, specifying in detail the loan repayment rules.

The preliminary real estate sale and purchase agreement do not have to include the date of the conclusion of the final agreement. If the parties decide to specify it, the deadline should be exact and not specified.

A preliminary contract for the sale of the plot

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When buying a plot, as in the case of buying a flat or a house, there is no need to sign a preliminary contract. Usually, however, this is a fairly large investment, so you should secure your own interest.

First, check whether the site offering the plot is fully entitled to do so. If the owner of the plot is married, we must additionally find out whether there is a seller’s property separation. Otherwise, both spouses must sign the act. If there are no inaccuracies, a preliminary contract for the sale of the plot can be signed.

A preliminary agreement for the purchase of real estate – what is worth knowing?

We often wonder what the form of the preliminary contract should be. The preliminary contract for the purchase of an apartment, house or plot, as opposed to the final contract of sale, maybe concluded in ordinary written form. The final sales contract must be concluded in the form of a notarial deed.

It is also good to know in what circumstances the preliminary contract is terminated. The preliminary contract shall cease to apply when it is terminated by both parties or one of the parties effectively withdraws from it. You should be aware that the expiry of the final contract does not result in the expiry of the preliminary contract.

How much is the preliminary contract with a notary public?

It will be safest if the preliminary contract for the sale of real estate is prepared by a notary public. Preparation of a preliminary contract by a notary public ensures that there will be no problems between the preliminary contract and the loan. The cost of preparing the preliminary agreement by a notary public is usually 50% of the notary bed would be charged from the contract target.

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Check what I offer a loan company for entrepreneurs

When is it worth using the Modify offer? Online loans for small and medium-sized companies are a chance to participate in tenders, increase the number of orders or participate in projects financed from EU funds.

The Modify loan company operates in all Baltic countries and its headquarters are in Riga. The loan is granted in the amount from USD 20,000 to USD 400,000, without hidden fees, and its formalities have been kept to a minimum. Thanks to this, you can be sure that the verification process will take place faster than when applying for a loan for companies at the bank.

How do you get a loan from Good Credit?

How do you get a loan from Good Credit?

Are you wondering how the Good Credit loan process takes place? It is very easy! The first thing you need to do is complete a loan application. You will mark the loan amount and repayment period. Using the calculator available on the lender’s website you can immediately check its cost.

You will see in this way whether it is an offer tailored to your capabilities. After receiving the application, you will be asked to send a bank statement. Then, the loan company will check your data in public and private registers.

Based on the collected information, your company’s loan repayment capacity will be assessed. If the decision is positive, you will receive funds to your bank account the next day at the latest.

Opinions about Good Credit are very positive. The company operates fully legally on the Polish market, as well as many neighboring ones, including Lithuania, Latvia, and Estonia

Who can get a loan from Good Credit?

Who can get a loan from Good Credit?

As you already know, the Good Credit loan is only for entrepreneurs . Therefore, it is also a business loan, including a one-person loan. Moreover, this company must be creditworthy , which in practice means that should bring income. Nor can it appear in the register of debtors, because then you can not count on that as its owner, you will receive a loan.

Significant restrictions also apply to the revenue your company should show. The maximum loan amount is set on its amount. If you intend to borrow USD 40,000, the income should be at least USD 130,000 for the last 12 months. What’s more, the seniority of the company is also important, i.e. the period since your company has been operating on the market. The minimum is 6 months .

Good Credit loan costs

The cost of the Good Credit loan depends on the amount you choose and the repayment period you choose. Your company’s income is also important. Based on this type of data, each customer receives an individual offer. Check it on an example.

If you want to borrow USD 5,000 for a period of 12 months, then based on the loan calculator, you can see that your loan’s monthly interest rate will be 3.5% and its total cost is USD 6,133 . The monthly installment, in this case, is USD 416 . The loan is secured by a business owner guarantee

What does customer verification at Good Credit look like?

As already said, the client will be thoroughly checked in public and non-public databases. In practice, this means above all that the loan company will verify that the borrower’s data are, among others, at the Credit Information Bureau.

In addition, customers are required to provide a bank statement. It is based on the company’s recent income that the loan is granted.

Therefore, verification takes place at two levels. There is no chance for you to get a loan if you have no income or are in debt. The loan will also not be granted to a company that has been on the market for less than 6 months.

Loan repayment in Good Credit

The loan in Good Credit is repaid in installments. You can choose their quantity by choosing the repayment period. Importantly, in the case of loans for higher amounts, repayment takes place even twice a month. When filling out the loan application, you will need to set up your own account on the loan platform.

This is great facilitation that will allow customers instant access to all information regarding the loan. It will, therefore, be possible to monitor installment repayments.

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Financial or bank loan: what is the best option?

The search for loans has grown significantly over time, mainly due to the economic crisis that has been plaguing our country. They are used for various purposes, such as debt settlement.

However, when someone is in need of money for an emergency and it is necessary to take out a personal loan, it is necessary to analyze whether the loan in financial or bank will be more advantageous. Do you know which institution offers better conditions? Do you know the loan modalities on the market?

Thinking about these issues, in this post, we will mention the types of loans and the main doubts on the subject. Follow!

What are the loan terms?

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Payroll loans

Payroll is a benefit that may or may not be offered by organizations to employees. For this reason, it is more common for large companies to provide this line of credit, smaller companies do not always provide it.

Some banks charge credit assessment fees and registration fees. In addition, they can try to introduce insurance into the loan. For this reason, it is essential to check the CET (Total Effective Cost) of the operation, a rate that adds not only interest but all costs involved in the loan.

In fact, it is very important to research the CET in several institutions, comparing not only the costs between large banks but also in smaller banks, which can enable more advantageous conditions.

Benefits

This is one of the modalities most recommended by specialists, and this is due to the fact that the interest rates are one of the lowest in the market. As banks are more assured that they will get paid on time, they offer lower rates than loans with finance companies, which do not have this security. After all, the debt installments are deducted from the debtor’s payroll.

Disadvantages

Not everyone has access to the line. The payroll is available only to INSS retirees and pensioners and to employees of private organizations that have agreements with banks to offer this option.

The anticipation of the income tax refund

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This type of loan fits into the personal credit modality. Their rates are generally lower than those of other credit operations that do not provide amounts to be credited as collateral.

Benefits

Due to the fact that the debt payment is debited from the debtor’s account, as soon as the Income Tax (IR) refund is deposited, the bank guarantee is increased. Since they will receive payment, they offer lower rates: 1.93% per month, corresponding to 25.78% per year.

Disadvantages

If there are inconsistencies in the IR statement, the taxpayer may even fall into the fine mesh. Thus, the refund amount calculated initially may decrease or not even be deposited.

In addition, even if the situation with the tax authorities is regularized, the amount of the refund can be paid only from the year following that of the declaration, in the remaining lots.

In spite of this, the bank will require that the payment be made by December, at the latest, when the last batch of income tax refund is deposited.

Thus, the borrower may not be able to settle the debt. It is important to note that the credit is only available at the bank that the debtor indicated in the declaration to receive a refund.

Personal credit offered by websites

Some sites offer personal credit at lower interest rates than those charged at major banking institutions. These sites partner with small and medium-sized banks to offer resources. Thus, they act as banking correspondents.

Benefits

Due to the fact that these sites do not have maintenance costs with physical agencies, they are usually more stringent in granting credit. In this way, they are able to set up a portfolio more focused on good payers, which reduces risks and makes it possible to offer lower interest rates.

Disadvantages

The disadvantage lies in the more rigorous credit analysis, which may make it impossible for some people to approve. The interested individual must be prepared for bureaucracy. Because they do not know the customer and his payment history, as in large banks, the sites require a lot of information so that they can make sure that the customer will be able to pay the debt.

In addition, in some situations, these sites may charge administration fees. For this reason, it is necessary to analyze the CET of the operation and not only the interest.

Property refinancing

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In this type of loan, the owner makes his property available as a form of debt guarantee. Therefore, the line is called property refinancing.

Benefits

As the institution has the guarantee that it will be able to redeem the property if the debt is not paid, interest in this case also decreases. The terms reach up to 20 years, and the amounts borrowed can exceed millions of reais. Interest is lower than payroll-deductible loans, ranging from 19.56% to 26.82% per year. However, there are other costs involved in the operation.

Disadvantages

The disadvantage of this line is its high risk, since, in the event of default, the bank may repossess the debtor’s property. In addition, it is a loan that generates many costs that go beyond interest.

In addition, as a fiduciary alienation operation is carried out, in which the property remains in the name of the bank until the debt is settled, it is necessary to register the operation in a notary’s office, as well as in financing.

Refinancing can be recommended for those who cannot apply for the payroll loan but need a solution with higher amounts and terms than those of other modalities.

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Fast money: borrow and pay out today with the use of small loan

Borrowing through the internet and getting the same day has become very easy.

The car is on strike, a repair is priceless from the existing budget. The washing machine or the vacuum cleaner give up the ghost and now you are faced with the question of where you should quickly get the money for the new purchase. The landlord requests an additional payment for the operating costs and you do not have long to meet the deadline and have to pay quickly.

These are a few of the many reasons for a loan that you can get today and that is easy and straightforward to grant. Short-term money worries are often rejected at the house bank or savings bank. It is best to orient yourself directly on the Internet and find a small loan that you can apply for today and still get paid today.

Editor’s tip: If the loan amount is at least USD 500, online credit brokers such as Cream Bank.de are more worthwhile than small loans. You have to pay back the money in smaller installments and from 12 monthly installments – with small loans, the money must be paid back within 30 days, otherwise there are expensive late fees! Cream Bank also pays small loans within 24 hours for Credit Bureau entries!

Get money today thanks to instant loans

Get money today thanks to instant loans

As can be seen from the terminology, the money is immediately transferred to the instant loan and, thanks to Sofortüberweisung, credited on the same day.

Various providers, for example Best Bank or Nice Bank, offer you the option of transferring the loan amount immediately. The terms and conditions vary, both depend on your credit rating (see also mini credit without Credit Bureau), but also on the amount requested. If you opt for an instant loan without proof of income and without a credit check, the amounts are usually lower and the interest rates higher.

Nevertheless, you can secure the advantage of compensating for temporary financial bottlenecks and receiving the immediate payment of a loan amount very easily. A comparison is advisable and precludes you from making a hasty decision and ultimately using an offer that is too expensive or not very flexible. Even if you need the money immediately, you should take the time to make comparisons and carefully examine the conditions in the loan agreement.

Fast money on the same day is often expensive

Fast money on the same day is often expensive

Have you missed a payment deadline and still need to get money today to protect yourself from a payment order or other consequences? Then you should take a closer look at the option instant loan and use a possibility to cover the short-term money requirement. The offers are varied and contain information on the payment period within one hour, on the same day or within 24 hours.

It is usually not clear at first glance whether the immediate payment is offered free of charge or as an additional service at an additional cost. You should therefore check your favorite loan offer comprehensively and find out whether the immediate payment incurs additional costs.

A real instant loan can be applied for in a few minutes and is characterized by the fact that the term “immediately” is not only used as an advertising medium, but actually implemented. In order to offer a possible disposition on the same day, an immediate loan must usually be applied for and approved by a certain time (usually 2 or 3 p.m.).

How does an instant loan work?

How does an instant loan work?

The digital age has also revolutionized the financial market. While a classic transfer takes several days and can take up to a week depending on the processing time of the bank, the instant loan really works. With a click of the mouse, the money is transferred from the lender’s account to your account and immediately released by the account-holding bank.

Other options for instant loans are based on opening an account directly with the lender. However, this method is rarely used because there are various options in the classic bank transfer business for an immediate crediting of the amount to your account. Some lenders have the fast service paid for, while the offer for a real instant loan comes at no extra cost for immediate credit. This speed is technically possible due to the digital transmission, for which no bureaucratic paperwork has to be done. The post office is no longer interposed either, because verification of the applicant via VideoIdent is included in the instant loan.

Where can you still get money today?

The lenders Best Bank and Nice Bank and Cashper are the ideal contractual partners. These providers not only advertise with an immediate credit, but also provide the service advertised in marketing.

The best way to get the money today is to make the application in the morning, but importantly before 2 p.m.

Even if the lender sends you prompt credit, you still need to keep your bank’s business and booking hours in mind. Some banks allow online credit outside of business hours. As a rule, however, you can only freely dispose of the credit once it has been booked by the account-managing institution. The situation is different if you use an online account and accordingly send and receive money regardless of booking times.

Editor’s tip: If the loan amount is at least USD 500, online credit brokers such as Cream Bank.de are more worthwhile than small loans. You have to pay back the money in smaller installments and from 12 monthly installments – with small loans, the money must be paid back within 30 days, otherwise there are expensive late fees! Cream Bank also pays small loans within 24 hours for Credit Bureau entries!

Prerequisites for quick money

If you want to get a quick loan, you must make sure that you meet the credit requirements when applying.

  1. Your age of majority,
  2. a permanent home address
  3. and a valid ID

are the basics. With the copy of your ID you verify yourself via VideoIdent. The lender needs a valid German bank account to pay the loan. Alternatively, he can also request that you open a current account with him and only get the money credited there. So it is worth comparing the conditions of the lenders and examining them carefully. There are also differences as to whether the creditworthiness is checked or not and whether proof of your income is required or not required.

Make sure you have a serious loan, for which you do not have to pay in advance or have to perform a service or provide data beyond the usual requirements.

How much money can I get right away?

How much money can I get right away?

Instant loans are available in very different combinations, so they are also available for different amounts. Mini and installment loans, consumer and consumer loans or debt rescheduling can be applied for with immediate payment. Based on the versatile loan models, the possible sums are between 50, – USD and over 100,000 USD. The short-term most popular sums, however, should be in the low three-digit range (e.g. 100 USD small loans). You can apply for a small loan with the availability of the money in your account relatively easily. If you need a sum of 50,000 USD and more, immediate payment is also possible, but linked to higher requirements. In the case of large loans with credit without waiting, your credit rating is an important indicator of the approval and the amount of interest. Offers with a low credit rating are immediately available, but their total costs are more expensive than the same loan with positive Credit Bureau.You can get any amount on the day of the application, as long as your performance meets the requirements of the lender and allows approval.

How much is an instant loan?

How much is an instant loan?

Here the devil is in the details and there is no answer that applies to all lenders. If you would like to have the money in your account today, some donors offer this service at no additional cost. The period of “ immediately ” is between a few minutes and 24 hours. With a classic mini or installment loan without immediate transfer, you have the option of booking the service as a special service. This creates costs that make a new comparison with alternative offers necessary. A loan with a higher interest rate, but immediately transferred without additional costs, is often noticeably cheaper than a loan that comes with low interest and additional costs for immediate instruction. If you would like to use this service free of charge and as part of the loan, only providers who offer the instant loan and do not consider the quick disposal as an additional service are eligible. You can find information on this in the payment instructions and in the lender’s fee tables.

What can I use the money for?

What can I use the money for?

In general, a distinction is made between earmarked and disposable loans. Here, loans with immediate instruction do not differ from classic loans offered with a longer payment period. You can opt for an urgent loan to buy a car or to reschedule debt, for renovation and refurbishment work, to buy property or as a small loan. If you want free access to the money in the account, it is best to use an offer without a purpose.

For all other loans, you can only spend the amount on the expenditure agreed with the lender, which can prove to be a disadvantage in individual cases. Since the need for a loan that arrives in the account immediately results in most cases from a purpose, a comparison of the earmarked with the freely available offers can be a way to save interest. Dedicated loans are cheaper than free money.

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Renegotiate debt: ask questions about it!

Being in debt is a situation that nobody wants. After all, the tranquility of knowing that your finances are up to date and that your income is just for you is one of the best feelings.

However, it is not always possible to avoid charges. And, in certain cases, there are so many that there is only one alternative left: renegotiation.

If you have this financial dilemma, get ready! We have separated everything you need to know about renegotiating debt. Look:

How to renegotiate debt?

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The situation of those who resort to renegotiation is always very worrying. Generally, it has reached a point where it is no longer possible to maintain the plots and is in so much debt that everything has turned into a snowball.

Making a deal to pay off debt, at first, seems like a complicated idea, but for the consumer, it is a good strategy. According to the SPC, discounts for those who choose this route reach 22%. If the debtor pays in cash, it maybe 69%.

The 1st step

First of all, the consumer needs to know how much income he has and how big the debt is, that is, to calculate the amount with interest and fees that are part of the expense. Regarding interest, knowing their value separately helps when renegotiating.

With all the information in hand, it is time to go after the lender. If you do not know who is in charge at the institution, the debtor needs to speak to the call center.

Upon finding it, the consumer must explain his intention to resolve the issue and tell his current situation, that is, that he is having trouble paying them and wants to know what are the alternatives that exist for his case.

It is very important, to be honest about the amount you can make available to the installments and only accept a proposal that you can honor.

As banks usually give high values ​​in the first claim, just dividing them into long-term installments, the consumer believes that he will pay less. Before giving the final word, it is interesting to analyze calmly if the proposal offered is really beneficial.

Next, we will explain about the rights you have when renegotiating your debt:

What are the rights of those who renegotiate debt?

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In fact, there is no specific legislation for renegotiations. With this, some financial institutions end up adopting a more abusive attitude. Even so, the consumer does not need to accept the 1st proposal that is offered.

He has the right to go to court to redo the contract if he realizes that, during the payment, the charges are unfounded. Even banks cannot force you to accept certain criteria without taking into account your condition to pay the debt.

In addition, the renegotiation can be considered as a new debt and, thus, a new contract. Therefore, it is possible to reformulate what are the obligations and rights of both sides.

For this reason, it is important to record everything in the document and define the requirements well. This contract will be very useful in the event of irregularities and if it is necessary to take the case to justice.

We also recommend asking Good Finance for help in case of difficulties. The agency has a nucleus only for over-indebted people. However, it only works for those who fit the profile and are in default.

The others must afford, from their own pocket, a lawyer to mediate the renegotiation.

What not to do when renegotiating?

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As successful as the renegotiation is, it is still possible for the consumer to take some wrong measures. In this topic, we have separated some errors that should be avoided at this point. Understand:

Do not re-budget

The budget analysis needs to be done before contacting the lender. Here is the moment when the consumer will know what his real financial condition is and when he will define what will be cut in order not to acquire new debts.

He must put his net income for the month on paper, subtracting taxes, benefits, and fixed and superfluous expenses. The final balance is the amount he will be able to pay monthly for the debt.

This diagnosis will be essential, even to dictate the circumstances for the renegotiation.

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Requirements for a loan – How to be recognized creditworthily

  • asic: In order to fundamentally get a loan contract, a place of residence in Germany and the age of majority are mandatory.
  • Creditworthiness: Depending on the loan amount and purpose, the bank requires a certain creditworthiness. This includes, for example, a regular income, good Credit Bureau information and other characteristics.
  • Bank’s discretion: In principle, it can be said that the requirements for each bank can also be different. Ultimately, the loan approval is also a discretionary decision by the bank.

What are the requirements to get a loan!

What are the requirements to get a loan!

Obtaining a loan is not particularly difficult today if the requirements are met. But what are the requirements for borrowing? Below is an overview. Lending is subject to certain conditions to ensure security for the bank. With a loan, long-cherished wishes can be fulfilled – buying a car, buying furniture, a nice trip, for example. However, banks are becoming more and more careful when lending to avoid possible default.

They therefore set out lending requirements that can vary depending on the occupational group, age and income situation.

When are you eligible for credit?

When are you eligible for credit?

Credit capacity is the ability to conclude a credit agreement in a legally effective manner. This is a crucial requirement for any loan. In Germany, private consumers can agree on a loan agreement as soon as they are fully legally competent. This is the case when the adult reaches 18 years of age.

Adult creditworthiness is only at risk if there are serious mental or psychological restrictions. Minors, on the other hand, are generally not able to credit themselves. Many credit institutions also link lending to permanent residence in Germany.

In addition, there are age restrictions “upwards”. From certain age limits – for example 70 or 75 years – often no more loans are granted. There are no legal reasons for this, but for business policy. The risk of death and illness is greater in older people, so the likelihood of credit disruption increases.

How is the credit rating checked?

How is the credit rating checked?

In addition to creditworthiness, creditworthiness or creditworthiness is another important credit requirement. Creditworthiness is when you are economically able and willing to meet the payment obligations associated with the loan on time and in full. Banks use various instruments to check their creditworthiness.

A must is the Credit Bureau information, which is always obtained ( More information at: Credit without Credit Bureau). Negative characteristics in Credit Bureau queries – for example, dunning procedures, account attachments, affidavits or even personal bankruptcy – lead to the loan being rejected.

The creditworthiness is often calculated using scoring methods. This applies in particular to consumer loans. Scoring is a mathematical-statistical procedure that determines the probability of default of a loan on the basis of “accurate” data of the respective prospective customer. If the scoring does not reach a sufficient score, no lending will take place.

Another “classic” assessment tool is the assessment of the ability to serve capital. It is common for larger loans and is often used to supplement scoring.

What does capital serviceability mean as a requirement?

What does capital serviceability mean as a requirement?

The interest and principal payments on the loan are referred to as the lending service. A borrower must be able to provide repayments, which means that he must be able to afford the agreed interest and principal payments. This is usually checked with the help of a household bill.

The regular income (wages, salaries, investment income, rental income) of the borrower’s household is compared with the usual expenses for living, housing and mobility as well as other obligations.

There must be enough left to show the rates. Otherwise there is no adequate serviceability. In the case of many loans, the rate burden can be influenced in the context of the choice of term in such a way that the prerequisite of serviceability is met.

Why is a safe income important?

Why is a safe income important?

A secure regular income significantly improves credit opportunities. This is the reason why employees in solid employment relationships are more likely to get credit than the self-employed. Employment income can be calculated well and reliably. It forms the basis for servicing credit installments. The self-employed also generate income. However, these fluctuate and depend on the respective business situation.

From a bank’s perspective, this increases the credit risk. This also applies to jobs that are not yet sufficiently secure – for example, during probationary periods or training relationships. In all of these cases, banks are often reluctant to lend or make additional demands.

What role do collateral play?

What role do collateral play?

Whether collateral is required for loans depends on the type of loan, but also on personal creditworthiness. Typical installment loans in consumer credit business are usually granted without collateral. Here proof of income is sufficient as “security”. It takes place via corresponding wage and salary statements or bank statements.

In the case of car financing, the vehicle is usually required to be assigned as security. The standard is protection for real estate financing – because of the high loan amounts and long terms. The mortgage serves as a security instrument, less often the mortgage.

Borrowers who have “deficits” in their creditworthiness can often still get their credit by providing collateral. A distinction is made between real and personal security. Real collateral is about pledging or transferring assets as security or assigning claims.

The most important personnel security is the guarantee ( More information at: Loan with guarantors). Alternatively, in the event of a lack of creditworthiness, the co-application can also be requested by a second borrower with good creditworthiness.