What should you pay attention to when you take out a loan?

Now that interest rates are at a particularly low pace, the loans are doing particularly well in our country. But what should you pay attention to?

To this day, our countrymen flock to the private bank to take out a mortgage loan. The cause is the continuing low-interest rate. Who today takes out a home loan for 25 years can still decorate an interest of around 2 percent. Several other loans are also much cheaper than a few years ago.

For example, you can take out a car loan at a private bank at a rate of 1.29 percent. In any case, it is not recommended to blindly plunge into a credit adventure. If you do not pay attention, you risk a lifelong debt burden.

Blind gaze on interest

money invest

To start with, it is important to check how much capital you can invest in yourself. Especially when you want to take out a home loan, your own contribution can have a huge impact on interest.

For example, the majority of a private bank is prepared to significantly reduce the rate of your mortgage loan if you borrow a maximum of 80 percent of the market value of your home loan. The lower the quota, the less the risks the private lender takes.

Moreover, do not just be guided by the interest. Look firstly at the monthly installment. For example, a 20-year rate may look much more attractive than a 25-year rate, but that means that you will have to pay more every month.

For example, those who borrow 100,000 dollars and pay off that debt within 20 years owe the private lender 2.58 percent interest or a monthly repayment of 532.36 dollars. Those who pay the same amount within 25 years pay 2.91 percent interest or 467.56 dollars per month.

Borrow for a purpose

money loan

Also, look at the purpose of a loan and let your private lender know that clearly. For example, those who renovate a home and mainly make green investments can get a cheaper renovation loan from various private lenders. Anyone taking out a regular renovation loan at the major private lender today will be offered a rate of 2.7 percent.

But those who meet certain conditions can borrow the same amount at a favorable rate of 1.9 percent. The private lender grants such a green loan to people who renovate at least 50 percent in an energy-efficient way. Consider, for example, solar panels or solar boilers.

The same applies to those who buy a car.

car loan

The private lender also offers various formulas for a car loan. Them private lender, for example, applies an annual cost percentage of 2.7 percent for new cars and second-hand cars that are less than two years old. If you buy an ecological car, you will see that the rate drops further to 2.55 percent.

That while those who buy a second-hand car that is older than 2 years see the cost percentage rise to 5.15 percent. Both in the case of a renovation loan, car loan or other personal loans with a specific purpose, the private lender will always request proof of your purchase.

After all, the private lender uses different rates for various loans. Those who take out a personal loan usually see the annual percentage rate rise sharply. Those rates vary between 4.9 and 10.5 percent.

Car loan with letter as security – at the desired rate

 

The bank often requests the letter as security, so that the customer has no choice. The basic requirements for the loan must be observed first.

 

Car loan – customers need to know that

Car loan - customers need to know that

In order to be able to take out a car loan with security as a letter, the basic requirements should be known. The lender expects the applicant to be at least 18 years old. As a result, he usually has a seizable income that can prevent a failure. Credit default is also minimized if the employment contract is permanent.

You also need to have a good credit bureau. This will be very important in terms of creditworthiness. Customers often fail at this point of the review. But too little income can prevent borrowing or reduce the loan amount.

The letter is intended to serve as security. In the event of a loan default, the lender can sell the car and keep the profit. The loss would therefore not be noticeable to the lender.

Documents for borrowing

Documents for borrowing

Proof of income will be required for a car loan with letter as collateral. Many require the last three proofs, so that a regular income is proven. The lender will also look at the length of employment. Anyone who works on a trial basis will have no credit opportunities. Since employees can be terminated at any time during this period, the risk of a loan would be too great. Third-party banks require the bank statements to be viewed.

This way it is checked whether there is a garnishment of wages and how the borrower can handle his finances. A negative account makes a very bad impression. Before applying, make sure that the account has been cleared. If the customer takes out a car loan with a letter of security from a foreign bank, the Postident procedure must be carried out.

This guarantees that the customer exists and that it is really this person.

Bad creditworthiness – further loan collateral

Bad creditworthiness - further loan collateral

If the bank requests additional security, then the customer has to come up with something. The guarantor and capital-forming life insurance are among the most chosen loan collateral. It is not easy for every loan seeker to find someone who guarantees the car loan by letter as security. If this person is not found, a capital-building life insurance can also be taken as security. (Hardly accepted since 2016)

The loan seeker must note that the insurance is only accepted if it can show a corresponding surrender value. So this must be as high as the loan amount that is taken up. Anyone who can offer this does not need any residual debt insurance. This is very often offered. But it is only needed if there is no other loan security. With two insurance policies, the borrower would be overinsured and would have to pay unnecessary premiums.

Auto bank or direct bank?

Auto bank or direct bank?

Again and again the question is asked where the loan is best taken out. In order to be able to answer this question in individual cases, the conditions of the providers should be considered. The customer can apply to a car bank on site. There is no need to search for a lender.

The dealer will send the customer’s documents to the bank. In return, the bank will send an offer to the dealer. So the customer can decide whether to accept this offer. At a direct bank, the customer has a very large selection of car loans on the Internet. This has the advantage that he can determine himself at what interest rate and for what term he takes out the car loan by letter as security. The interest, but also the other options, can decide whether to take out the loan.

A loan calculator shows exactly which offer turns out to be cheap and which turns out to be expensive.

Car loan with letter as security – loan calculator

Car loan with letter as security - loan calculator

The loan can be taken out very flexibly so that it can be adapted to personal needs. The rates are adjusted so that the applicant can bear the monthly charge without any problems. The selection is quite large. Credit institutions very often grant a car loan with a letter of security if the customer can prove that the creditworthiness exists. This enables the customer to compare the loans online and find a good offer.

A loan calculator is easy to use. Only a few details will be required to learn a lot about the loan.

After the loan amount, the term and the purpose have been specified, the calculator creates a list. Now you just have to choose the right offer.

How to apply Credit for wedding?

Your own wedding should actually be one of the most beautiful experiences in everyone’s life. After all, you only want to say “yes” once. And this alliance with life partner should be celebrated properly.

But equipping a wedding and finally holding it can be very expensive. A great wedding dress, a beautiful wedding location, the hospitality of the guests, the honeymoon … all this and much more comes to the bride and groom and has to be paid somehow.
Above all, young people have big problems with funding. You don’t have enough financial cushion to pay for the wedding with the savings. Therefore, many newlyweds choose to take out a loan for the wedding.

What can a wedding loan look like?

What can a wedding loan look like?

The plan to take out a loan for the wedding is quick. But putting this loan into practice is a lot more difficult. Because there are some important things to consider and consider in advance.

Every loan comes with a certain loan amount. The bride and groom should therefore know roughly how much money they need for their wedding. Unfortunately, looking into the crystal ball is not enough to predict this. Rather, it is important that the location is set, the costs for the wedding dress and the groom’s suit are known and the honeymoon has already been discussed.

The costs for the food and other can then be agreed individually and can be included in the calculations as a flat rate. However, the rest of the celebration and the associated costs should be known in order to be able to create a reasonably accurate amount for the wedding loan.

Once a loan amount has been determined, the loan can be taken up. The first step here is to determine the right type of loan. With a loan for the wedding, an installment loan is recommended, which can be perfectly adapted to the wedding and which can be repaid to the bank in small installments. Since both bride and groom benefit from the loan, they should take it out together. This increases the creditworthiness and thus the chances of getting a loan on good terms.

What are the requirements?

What are the requirements?

In order to be able to take out a loan for the wedding, the borrower must have a good credit rating. A good credit rating is given if the private credit checker has not saved any negative entries, the income is based on a permanent job and is above the garnishment allowance. In addition, each borrower must be of legal age, have a permanent residence in Germany and be able to show a checking account with a bank based in Germany. If this is the case, nothing stands in the way of a loan for the wedding.

Important tips for borrowing

Important tips for borrowing

Many bridal couples receive cash gifts at the wedding. If you provide your loan with the option of free special repayments, the money from the gifts can be used in full or in part in the loan. This reduces the loan amount in one fell swoop and shortens the term. This has the positive side effect that the loan is paid off faster and the costs are reduced by the interest.

You should also make sure that there is a little time between borrowing and the start of repayment. Anyone who goes straight on their honeymoon after the wedding doesn’t think about financial obligations to a bank. Therefore, the repayment for the loan should only begin when the couple is back from their honeymoon and can personally take care of all financial matters.

Borrowing is not just about finding suitable financing quickly. It is also about taking advantage of cheap financing, i.e. a loan with the lowest possible interest. We therefore recommend comparing different loan offers with one another before the signature is placed under a loan agreement. A comparison is possible, among other things, with a loan calculator, which is available in various forms here on the Internet.

Loan for used cars – it’s that easy!

No matter whether someone wants to buy a used car or a new car today, financing always plays a major role. As a rule, most buyers choose a used car because the loss in value is less and the acquisition costs are lower. Many consider whether they can not get a loan for used cars. Your own funds would be more advantageous, but very few can pay for a vehicle in full. Nowadays, a loan is common and hardly anyone saves before buying something. It is completely normal to buy something first and then pay for it. If you want to make the dream of your own vehicle possible, you will need external funds.

Where can I get a used car loan?

Where can I get a used car loan?

Most car sellers work with a house bank and here there is a loan for used cars. The interested parties must note that this loan does not necessarily have to be the cheapest. Buying a car can be very expensive if there are additional costs and interest. In any case, interested parties should obtain a comparison offer from the house bank. There is often a special loan for used cars from the savings banks and banks. This loan often offers much better conditions, such as when visiting a dealer bank. If a borrower has sufficient creditworthiness, then no further collateral has to be provided. A regular receipt of salary or wages is often sufficient for the loan for used cars.

What if the credit rating does not match?

What if the credit rating does not match?

If a prospective customer has a poor credit rating, additional collateral is required. The borrower can bring a solvent guarantor or transfer the vehicle as security. Whoever brings a guarantor should note that this can then show a good credit rating. Thanks to a transfer by way of security, a lender has the right to sell the vehicle immediately if there is a breach of contract, such as a failure to pay in installments. The outstanding receivables can then be offset against the proceeds from the sale. The borrower can only really use the car and the lender is the owner of the car.

The insurance companies with the loan for used cars

The insurance companies with the loan for used cars

Most savings banks and banks also offer comprehensive insurance for financing. Banks often also require residual debt insurance to be taken out. This ensures that the payment continues from the borrower in the event of death, illness or unemployment. However, it is still best to ask friends or acquaintances about a loan, or to visit an internet platform for a loan from private to private.

Take out a loan?

Is the purchase of a car, television, travel or wedding party out of your reach? Then taking out a loan is the solution. In the table we summarize the most important information about the currently available Belgian loans. This was sorted from cheap to expensive. So you immediately see:

  • Which loans are available.
  • How much you will have to pay off per month.
  • How much you have to pay to Astro Finance on top of the loan amount.
  • The Annual cost percentage or APR.
  • Which Astro Finance offers the cheapest loan.

These days you do not necessarily have to be a member of the Astro Finance if you want to take out a loan. Many Astro Financeen provide the option to take out a loan online. Most Astro Financeen offer loans for a whole range of amounts and durations, so you are sure to find a loan that fits your purchase.

Benefits personal loan

Benefits personal loan

A loan for the purchase of a car, television or travel is covered by the ‘personal loan’, also known as a consumer loan. The benefits of such a loan are:

  • You can borrow for any purchase: whether it is a computer or a piece of furniture, it doesn’t matter;
  • You can spread the payment so that it weighs less on your budget;
  • With many Astro Financeen you can borrow from as little as 1500 USD or even less.

Please note: on a loan you will always have to pay costs in the form of an interest rate and administration costs. Borrowing is therefore more expensive than paying the purchase at once. Be sure to compare the annual percentage rate and look for a good price before you take out a loan!

Monthly installments

If you take out a loan, you will see how much you will have to pay off each month, as well as how much you will have repaid to the Astro Finance in total at the end of the term. Make sure you can handle the monthly installment. The Astro Finance will also check this: therefore you must answer a number of questions when taking out a loan. How much are your monthly income? Do you already have a loan? What is your marital status?

After a so-called examination of the credit application, the Astro Finance will decide whether you can take out the loan or not.

If, despite the above research, you still encounter problems related to monthly repayments, then immediately talk to your Astro Financeier. In many cases it is possible to spread the repayments a little longer so that they become feasible again. Certainly do not get caught in such a case!