Thousands of loans are granted in Germany every day. Much of these loans are provided by the big banking houses. The most important thing here is the creditworthiness, which must be so good that a loan can be approved.
As a rule, many consumers can also meet the strict regulations and receive their credit in this way. But there are also consumers who do not have a good credit rating, as well as consumers who do not generate enough income, who have negative Credit Bureau entries or who have already accumulated so much debt that a loan is no longer recommended.
Refusing the loan can be very painful. If the loan is linked to a very specific investment that may have been planned for a long time or that cannot be postponed. Affected consumers then usually look for an alternative: a loan provider who tied other conditions to a loan and who also agrees to a loan under less favorable conditions.
Many loan offers on the Internet
Often you will find what you are looking for on the Internet. With the help of the right search terms, you will find a large number of offers that target precisely those customers who cannot take out a regular loan. But what looks pretty good at first glance doesn’t have to be. Because unfortunately there are a lot of credit providers in this area who try to increase their own profit with dubious means.
Many consumers are blinded and fall for the dubious offers. This can have fatal consequences. Not only that they have to pay a lot of money in order not to get a loan in the end. They are often forced to take out absolutely useless insurance policies and subscriptions that have to be used for many years. So what can you do to avoid getting into such dubious loan providers? What should be considered and what are the signs at the beginning of the conversation? We tell you – in the text below and in the transparent list of fair credit providers.
Amount of credit interest
If you get an offer for a Credit Bureau-free loan that is accompanied by unusually low interest rates, you should be taken aback. No Credit Bureau and lowest interest rates – that usually doesn’t go together. Since foreign banks cannot query Credit Bureau, they usually secure themselves otherwise, at least when it comes to more than small loans. Among other things, with higher interest rates that are intended to intercept a possible default. In addition, it is imperative that you have a stable employment relationship that generates a decent income. For all these reasons, loans without Credit Bureau are usually limited to $ 3,500 to a maximum of $ 5,000.
Insurance and subscriptions
You should also pay attention to the fact that you should take out insurance or subscriptions before lending so that the loan is “secured”. No loans should be taken out here. A residual debt insurance can be taken out to secure a loan. And only if the borrower so wishes. Everything else is often an attempt to make a lot of money.
No fixed company address
If the loan provider prefers to come to the prospective customer’s home rather than receive it in his own business premises and also conceals the company data, extreme caution should always be exercised. Every reputable provider normally has business premises that can be proven to exist.
Advance credit costs
One should also be careful if the provider requires upfront costs. Reputable credit providers usually offset their expenses and costs with the annual percentage rate. And this is only due when the loan agreement has been signed and the repayments begin. If money is required in advance for a loan, one should look for the experiences of fellow human beings with the provider concerned.
The business with the expensive hotlines
Credit providers that can only be reached via an expensive hotline should be examined more closely. Such hotlines can make a lot of money. The provider who provides these numbers receives only a fraction of the amount that has to be paid per minute for a call for the provision and management of the numbers and calls. The rest of the money goes to the supposed credit provider, who improves his monthly income in this way.
Dubious providers will also try to keep the caller on the phone for as long as possible. Many questions are asked and the credit request should be described in as much detail as possible. Often everything is aimed at keeping the caller on the line for as long as possible in order to make as much money as possible. However, you will often not receive a loan. Because after “thorough examination of the facts” you are usually informed that a loan is currently not possible under the circumstances. You can of course call again at a later date and the request for a loan can then be checked again.
Untrustworthy loan provider
If you do not want or cannot take out your loan from one of the traditional banks, you should look very closely at who you are getting into. Many dubious providers are waiting for unsuspecting customers to pull their money out of their pockets with senseless insurance, upfront fees or excessive interest. If a loan through banks is not possible, there are often good reasons for this. At best, you do everything you can to eliminate them and then make a loan request again. If everything fits and the credit rating is correct, you will also get a loan from reputable providers.