3 questions that we have to clarify before requesting a couple loan

Being two holders to request a credit has great advantages. Having two monthly incomes increases our chances that the credit will be approved and also gives us greater bargaining power to achieve better financing conditions. However, when applying for couple loans we are also taking some risks which we should discuss with our spouses before committing to go into debt to avoid possible future discussions. We tell you the three fundamental questions that we must answer before contracting a loan between the two.

Who will pay the personal loan?

Who will pay the personal loan?

The most common is that as both owners, the fee is divided 50% between the two or is paid with the couple’s common money. However, according to the particular organization of each couple, sometimes it is only one who is responsible for paying the credit.

Although in the eyes of the bank we are both fully responsible for the repayment of the credit, if we are not going to divide the payment equally between the two , it is important to make a document detailing this agreement between us .

In addition, we should also specify what the procedure will be if one of the two becomes unemployed and cannot cope with the payment of his part of the monthly payment and if he will have to return the money that he has not paid when his employment situation is regularized.

Who will use the financed good?

Who will use the financed good?

This question is especially important when it comes to a physical asset such as a car and not so much when it comes to a reform, something more intangible and that both will enjoy. Who will use the vehicle? In whose name will it be? Clarifying these doubts and leaving them in writing will always be important, but especially if the person who pays the credit and who uses the financed product or who owns it is not the same person.

What happens to the credit if we split up?

What happens to the credit if we split up?

This is undoubtedly the most awkward of questions , but also the most necessary. In the event of a breakdown, it is important to have a pre-agreement on what will happen to the financed asset and the remaining capital to be returned from the loan.

There are different alternatives that we can take advantage of that can be adapted more or less according to our situation and that we must assess:

  • Return the loan and cancel it : it is the easiest option. Without a loan, there are no problems. However, we will have to define whether the financed asset would be sold to return what remains and who would keep the money in the event that the quotas were not paid equally.
  • Sharing the loan as before : it is the simplest option in terms of paperwork, but also the most risky. In this case, we must have a lot of confidence in our ex-partner, since both of them will have to continue paying as before.
  • Change the credit to a single holder : with this option the dispute would be settled. It consists of going to the bank and making a contract change so that only one owner remains. Although here we will have to define who will keep the well financed and if the other part of the couple would get the money paid in the loan back.

Although these are uncomfortable questions to ask our partner, asking them will allow us to avoid possible misunderstandings or financial discussions.

An ideal loan for the childminder.

It has certainly happened to everyone before – a financial bottleneck has occurred and some invoices do not tolerate deferring payment. In such a case, relatives or friends often help out. On the other hand, for many it is not feasible to ask relatives or friends for a certain amount of money. And a Credit Bureau entry or poor credit standing make it difficult for a loan to have a credit rating on the one hand and on the other hand there must be no Credit Bureau entry. However, this is no reason to bury his financing requests ahead of time. What many do not know – even with poor creditworthiness and without Credit Bureau information, you can get a loan.

What needs to be taken into account with a childminder loan?

First of all, the monthly repayment rates of the loan should not be too high. You shouldn’t expect more than you can actually carry. The key to financing is good conditions and low interest rates. If the loan is flexible enough, you will have fewer difficulties in repaying it. The possibility of being able to suspend repayment for a month is just as important as special repayments at no additional cost. If financing includes all of these things, then it is highly recommended for daycare credit .

However, note a few things so that nothing stands in the way of your loan as a student, self-employed, pensioner, employee, trainee or unemployed:

1. Only set the loan amount as high as absolutely necessary

In principle, the principle applies: The funds required must be realistically assessed with regard to the topic of credit for childminders . It is therefore an absolute must to prepare the expenses in advance so that there are no unpleasant surprises afterwards. Planning a small buffer would certainly not be wrong. However, too large a cushion would unnecessarily push up liabilities. For this reason, you should keep the amount of the loan as low as possible. It is better to compensate for the understated needs by means of follow-up financing in the form of follow-up or top-up financing.

2. Establish a structured finance plan

Anyone who needs a loan for childminder credit must first realistically assess their financial situation and have precise control over income and expenses. A detailed weekly schedule of all expenses can help here, for example: So every day it is noted exactly what and how much money was spent. In fact, every single expenditure that has been made should be taken into account in order to really record all amounts of money. So you can not only determine where you can save something; the list also helps to assess the correct repayment rate.

3. Value care and accuracy

It is important to be careful, precise and absolutely honest with all information about your own financial situation and creditworthiness – Be honest, careful and correct with all information about your creditworthiness as well as your own financial situation. You should take enough time to carefully compile all documents and evidence. This is the only way to draw a precise and serious picture of your own financial situation, which will undoubtedly have an advantageous effect on the chances for an instant loan or an emergency loan.

 

What can a qualified intermediary do for you?

The broker will mainly support you in finding a German or foreign financial institution for a suitable “loan without Credit Bureau”. In detail, the help offered can also go beyond mere mediation and can be expanded to include debt counseling. An experienced loan despite Credit Bureau intermediary will advise you on the financing offer, show you the advantages and disadvantages and support you in compiling the application documents.

Advantages or disadvantages of mediation

Advantages:

  • Good connections also to lesser known banks and institutes
  • Advisory service before submitting the application
  • Mediation of loans even with poor creditworthiness
  • Assistance in compiling the documents for the loan application
  • Help with arguments in the case of problematic personal circumstances or large amounts of funding
  • Good options on favorable terms

Disadvantage:

  • Dubious offers are not always immediately recognizable
  • Risk of obtaining overpriced loans
  • Any costs for arranging a loan

Small financial institutions often offer more effective terms for daycare loans than large, established banks. A number of intermediaries are therefore trying to do business with such lesser known institutes. It is easily possible to negotiate even in difficult circumstances. With regard to their good connections, they can explain unfavorable Credit Bureau entries, for example, so that they are not rated as strongly in the creditworthiness check as in the computer-controlled processes of large banks. In contrast, with established banks, a loan request for childminder credit is almost always hopeless right from the start.

This is how serious creditors differ from dubious credit brokers

A reputable broker will always act in your best interest when it comes to childcare credit. As a rule, he does not expect any expenses or advance payments from you for his services, because he receives his commission from the bank.

You can recognize a reputable credit broker by the following four characteristics:

  • You will receive specific information on debit and effective interest, terms and loan amount
  • There are no costs for you to obtain a loan
  • The company has a website including contact options, imprint and address
  • The company can actually be reached on a test call, whereby the conversation partner makes a serious impression

The characteristics of a dubious mediator

  • Requesting a fee for the consultation and regardless of the conclusion of the contract
  • Promises like “100 {{percent}} loan approval”
  • Dispatch of documents on delivery
  • Offers in the form of a financial restructuring
  • Unregistered home visit
  • Required to take out residual debt or other insurance in connection with the financing
  • Calculation of additional costs or expenses
  • Urge to sign the agency contract

Which is why foreign institutions are a good option when looking for a childminder loan

Which is why foreign institutions are a good option when looking for a childminder loan

Whether you need the start-up capital for your self-employment, need a new car or are planning a longer vacation trip – loans from foreign credit institutions are being used more and more for financing. Along with the normal route to the house bank on the corner, consumers now also have the option of taking out loans from foreign institutions tailored to their needs via the Internet. Advantage: The guidelines for granting a loan are not as strict in Germany.

A poor credit rating or a negative entry in the Credit Bureau therefore play only an insignificant role in the loan for childminder. It is basically Infra Banks that grant loans that are brokered online. This could be an interesting alternative for consumers who need an injection of cash particularly quickly but have already been rejected by a Cream Bank. For example, the self-employed, students, probationary workers, the unemployed, trainees or pensioners. This group in particular has a difficult time getting a loan when it comes to childminder credit.

The advantages of a Swiss loan

Individuals who need a loan because they are in a tight financial situation often find it difficult. Financing is made considerably more difficult with regard to debt or poor creditworthiness. In these cases, a so-called “Swiss loan” can be a real option. It means a loan from a Swiss credit bank. Such institutes basically do no Credit Bureau queries, which clearly makes it easier to find loans. With regard to the loan for childminder, this fact can almost be described as ideal.

Obviously, you cannot take out a loan from Swiss institutions without checking the creditworthiness and various proof of income and collateral. If it is an entry in Credit Bureau alone that worries you about financing, Swiss credit could be a real option for you, provided your credit rating is so far in the green.

This is how credit works for childminder

A number of people who are looking for daycare credit, or “despite having a moderate credit rating” online, generally think of a “credit without Credit Bureau”. On the other hand, the creditworthiness is checked in the same way by all renowned financial institutions. Because apart from the Credit Bureau, there are other credit agencies that offer such a service.

There is actually no one who lives in Germany and has no score or entry at Credit Bureau. It is enough that you have applied for a credit card or opened a bank account. Then a corresponding value will be created for you at the same time. You cannot get a “loan without Credit Bureau” from a reputable bank. Usually, only a “loan despite Credit Bureau entry” is possible. Paradoxically, many consumers mistakenly believe that they have a “negative Credit Bureau entry”, although the statistics show something completely different: the {large part} of the entries are positive.

Our tip: This is how you can “delete a negative Credit Bureau entry”

An invoice has to be paid and you overlook the fact that you have to pay it on time. The reasons for this are often manifold: you have a new postal address due to a move, were on vacation at the time or were currently in a financial bottleneck. Sooner or later, there may be difficulties with an open mobile phone bill. It happens faster than you think. The result is that there is a negative Credit Bureau entry and it is difficult to get a loan afterwards. A reduction in the scoring due to several reminders means that it can have consequences for the application for a loan.

To protect consumers, however, it is possible to have a disadvantageous entry deleted by Credit Bureau. It is not uncommon for the information stored at the credit agency to be out of date and therefore outdated or simply incorrect. Therefore, exercise your right as a consumer and request self-disclosure in order to be able to view your existing entries. You can request such deletion directly from the credit agency. However, the removal will only be carried out on the condition that the invoice has been paid within six weeks and does not exceed USD 2,000.

Your data at Credit Bureau – deletion of Credit Bureau data

Your data at Credit Bureau - deletion of Credit Bureau data

The Credit Bureau entries are automatically eliminated after a certain period of time without any action on your part. For example, this happens with:

  • after exactly one year for information about inquiries; This information is only transmitted to contractual partners of Credit Bureau for ten days
  • for loans, three years after the year of the full repayment (to the day) of the loan
  • for information about outstanding claims, each after a period of 3 full calendar years (ie on December 31 of the third calendar year following the entry)
  • for mail order or online purchases, if the claims have meanwhile been paid

Swiss credit – the advantages

Individuals who need a loan because they are in a precarious financial situation often find it difficult. Financing is made significantly more difficult with regard to debt or poor creditworthiness. In such a case, a Swiss loan would be a real option. It means a loan from a Swiss financial service provider. Since such institutes do not carry out Credit Bureau queries, this reason does not play a role in lending. This is an inestimable advantage, especially when it comes to credit for childminders.

Obtaining a loan without a credit check as well as various proof of income and collateral is of course also not possible with Swiss financial service providers. If it is only a negative Credit Bureau entry that worries you, the Swiss loan could be a real option for you, provided that your credit rating is in order so far.

What is the “APR”

The amount of the cost of a loan is also of crucial importance for a daycare loan. Here, the “effective annual interest rate” or “effective annual interest rate” plays an important role. The annual cost of a loan related to the nominal loan amount is referred to as the “APR”. It is declared with a certain percentage of the payout. In the case of financing whose interest or other price-determining factors can change during the term of the loan, this interest rate is referred to as the initial “effective annual interest rate”

Under certain circumstances, a fixed debit interest rate is set for a loan for the entire duration of the term. In plain language, this means that the nominal interest on which the “loan” is based remains stable, even if the cost of a loan increases on the capital markets. The advantage here is that a fixed borrowing rate gives you the certainty that your loan costs will always remain constant. You already know that the interest rate on the “loan amount” remains unchanged throughout the credit period.

What does the loan term mean

The respective repayment terms granted to the borrower have a major impact on the term of a loan. This means that the longer the “loan term” for a loan, the lower the individual monthly installments that the borrower has to repay, and vice versa. It is therefore worthwhile to think through the various options in the area of ​​the loan term. However, not all maturities are offered for all loans.

What exactly is the term of the loan or loan term? In short, this is the time period between the payment of the loan amount and the full repayment. The duration depends on the one hand on the repayment and on the other hand on the amount of the nominal interest. The duration is understandably influenced above all by the amount and the number of installments. The repayment of the loan and thus the loan amount including interest and processing fees will take longer, the smaller the monthly installments. The so-called long-term loans are loans that are taken out for at least 5 years.

What are loan fees

Sometimes the loan fees are also called closing fees, loan processing fees, processing commission or processing fees. These fees are usually the costs that the credit bank was allowed to calculate until 2014 for the effort required to process a loan request or a loan application. As of May 2014, both “loan fees” for a loan request and the evaluation of the creditworthiness of the borrower may no longer be charged. Processing fees, which were calculated from the amount of the respective loan and were on average 1 – 3 percent of the requested loan amount until 2014, can no longer be offset at this time. Processing fees that have already been paid by borrowers for the loan application or the loan request can therefore often be reclaimed.

What is a lender

The lender can be a natural or legal person who grants the borrower or borrower a loan for a certain period of time at an appropriate interest rate. The term “lender” is generally used in credit contracts. In this context, one often hears the terms “lender” or “creditor”.

Granting a loan is always a high risk for the lender because the loan could default. For this reason, higher interest rates are usually charged for this. Typically, the lender is a credit bank, insurance company, or a savings bank. The borrower’s rights and obligations are regulated on the basis of the German Civil Code (BGB).

What is the monthly rate

Borrowers who have received “bad credit loans” must also pay them as individual monthly installments. When it comes to loans, the monthly installment includes an important element – the interest rate. The bank calculates the interest rate based on the prices currently calculated for interest on the capital market. It then passes this interest on to its customers – usually with a corresponding surcharge.

Another criterion for the “monthly rate” of the loans is the repayment. How high the borrower sets the repayment depends primarily on his total income. Per annum, the repayment for {longer-term financing} is mostly 1 {{percent}}. In the event that the loan amount and thus the loan amount are to be repaid in a shorter period of time, a higher repayment must logically be specified. Meanwhile, the monthly installments – depending on the amount of the repayment – are significantly increased.

Interest and repayment are therefore the main criteria that give the monthly installment for loans. Very often, however, the monthly installment for loans also includes the brokerage commission from the credit intermediaries or the processing fees of the banks. Although these costs are usually already included in the interest, they are still an element of the monthly installment for the total loan amount.

What is a debt rescheduling loan

What is a debt rescheduling loan

A debt rescheduling loan is a loan that someone takes out in order to be able to repay an existing loan with high interest rates somewhat more cheaply. With such a debt restructuring, the borrower can save money. With a debt rescheduling, you can also combine different loans into one. It is therefore absolutely not an issue to disclose more than one loan in the course of a debt restructuring. It goes without saying that the “debt rescheduling loan” is applied for from a different bank, but in and of itself. Nevertheless, the same bank can be chosen for the debt rescheduling loan.

The basic meaning and purpose of a debt rescheduling loan is without a doubt that after completing the new loan you will have less financial expense. Even with relatively slightly lower interest rates, you can save money with the cheaper loan.

What is the total loan amount

In principle, borrowers commit to repay the total amount of the loan to the financing bank. This includes all additional costs that the bank charges for the loan taken out. The total amount that the borrower has to repay to the credit institution within the term of the loan includes the ancillary costs and is therefore higher than the loan amount owed. The pure loan amount increases by possible processing costs or commissions as well as the interest to be paid. All the fees and expenses incurred can therefore be found in the “total loan amount”, which often makes it significantly more expensive than the actual nominal amount of the loan.

Various lenders require so-called residual debt insurance to be taken out to secure financing. These {costs} are also part of the total loan amount.

What is the loan amount

The actual loan amount that the borrower receives after the loan application has been released is lower than the total amount that he has to repay afterwards. If the “loan amount” may not be paid out in full as a total amount, it is often the case that the payment sometimes varies according to the type of loan. In the same way, this also applies to a “Swiss loan” or a loan.

It does not matter whether the borrower is a private individual or a commercial company, the credit institution always checks the total income or the business documents before approving the application for the loan amount. The actual amount of the loan amount is only a subordinate criterion. The applicant’s income is checked in the same way for a loan amount of USD 500.00 as for a loan amount of USD 10,000.00.

The repayment of the monthly installment in a set time is generally specified precisely for the loan amount. With regard to these credit criteria, they are all set out in the loan agreement. However, the borrower is often given the option of early repayment of the loan amount from his income through special repayments. Whether these special repayments are offered free of charge or are subject to fees must be found in the respective loan agreement. If the last installment for the loan amount has been repaid, the loan contract automatically expires. Approval of a fresh loan amount must be determined again in writing by the borrower with the bank.

What are the credit rating criteria

Without a credit check, there is no loan. Depending on the “creditworthiness criteria”, the result of the credit check, so to speak, is the basis on which the respective credit rating takes place, which determines the premiums on the loan. If the creditworthiness is positive, the financial institution generally demands cheaper loan interest.

As a result, a good result in determining the different criteria of the credit check is always advantageous for the borrower. With the normal credit rating criteria, there are quite a few differences between the individual credit institutions. These creditworthiness criteria are valid for every borrower and are practically identical for every bank.

  • What is the amount of income?
  • What is the employment relationship like?
  • Is the borrower a contract agent, officer or official?
  • Who’s the employer?
  • Where is the applicant’s place of residence?
  • Are there entries at credit agencies such as Credit Bureau etc.?
  • Does the borrower keep a household ledger with an entry-expense report?
  • Are there assets in the form of land or real estate?
  • What is the marital status?
  • Are there any guarantees and loans?

These are the prerequisites for childminder credit

These are the prerequisites for childminder credit

For your desired loan, you can positively influence the decision of the loan broker. To do this, however, the following requirements must be met:

  • Age of majority upon application
  • Residence in Germany
  • Account with a German financial institution
  • regular income
  • sufficient creditworthiness
  • for dedicated loans, collateral such as an object or a car

A few loan brokers offer the option to get a loan despite poor creditworthiness, namely the so-called personal loan or credit private. With “Lending money without Credit Bureau”, one or more donors act as lenders instead of the bank.

Tips about credit for childminder

Tips about credit for childminder

If you would like to apply for financing with an insufficient Credit Bureau or a poor Credit Bureau score, then first consider whether you are able to actually repay the loan without any problems. The bank usually has good reason to reject a loan application.

Remember: One of the primary business criteria of a credit institution is that as many consumers as possible repay your loan in full with interest. Financial service providers are always very interested in lending their money. If an application is rejected anyway, it is almost always due to the fact that the evaluation of the creditworthiness has shown that punctual payment is not to be expected in the future either because the payment behavior has been so poor in the past. Or the assessment of creditworthiness has shown that the necessary financial means, such as the minimum income, are not sufficient to repay the loan.

As a result, when it comes to applying for funding, such as a “loan without Credit Bureau”, it would be advantageous to first compare your income with your expenses. This makes it easy for you to assess whether you may have difficulty repaying it later. in any case, keep in mind that there are always unexpected situations that can make it difficult or even impossible to repay the loan amount on time. Either the car has to be repaired urgently, the refrigerator suddenly breaks or a high payment request from the tax office flutters out of the blue.

If you are smart, you can get advice from your personal credit advisor on a “loan with Credit Bureau entry”. You get exactly the support you need, because on the one hand you get excellent advice on how to find the right offer and on the other hand you have someone at your side who, if necessary, will impartially assess your financial situation with you. In this way, you don’t get caught in a debt trap unnecessarily, which can easily happen with a reckless “taking out a loan despite Credit Bureau”. Advice to loan brokers also includes “debt restructuring despite Credit Bureau”. This means that different loans are combined into a single loan.

In the event that your Credit Bureau score leaves something to be desired, the financial institution may reject a “loan with Credit Bureau” or a “credit with Credit Bureau entry”. Use the Credit Bureau score once a year free of charge.