Interest as cheap as never! It has never been easier to take out a loan than now! Are these statements familiar to you? These are the most frequently used statements when it comes to credit. The effect of those statements – according to numerous statistics – is that people are quite “seduced” to borrow. A decision that is quieter not seldom made without fully informing about the subject of credit in general . The result? It is often based on misinformation and errors, erroneous credit decisions are made, which cost the right amount of money in the worst case. To clear up time with the 5 most common mistakes when taking out a loan.
Credit Misery # 1: Use of the credit line is better than a long-term installment loan
Unfortunately, the most common mistake and probably also the most expensive: Who instead of a regulated installment loan rather uses the credit line , burns his money. With a federal average interest rate of around 9.5% per annum, the credit line is at least twice as expensive as current installment loans. Although the short-term bankruptcy loan can bridge financial bottlenecks in the short term and without a lot of paperwork, it can do so at a much higher price than the installment loan. Another disadvantage: The lack of regulation regarding the repayment of the credit line . It lurks the danger of continuous “non-repayment” through the compound interest effect in the long run to fall into the debt trap.
Credit Error Number 2: The house bank offers me as a regular customer the best loan offer
The typical misjudgment of bank customers regarding their perception and esteem at the house bank: One has over many years a bank account managed in plus and also a “good line” to the customer advisor. Of course, Ergo also gets the best interest on a loan project . Unfortunately it is false! The house bank – regardless of the status of a customer – has basically only one goal: to earn money and that with the help of own products or products with which good to very good commissions can be achieved. But that does not mean that these are the best deals for the customer! It follows that a neutral and independent advice at the house bank is hardly feasible. Corresponding solution for this is the use of a loan calculator, with which several loan offers from different banks can be obtained.
Credit Error # 3: Showcase Loans are always valid
Just because there is talk of a 0% credit in the window of a bank, this is not synonymous, that you actually get the loan to just those 0% interest. So cheating? Not at all, but many consumers, the difference between just those shop window interest rates and the individual interest rate (real interest rate) per customer is simply unaware. In plain language: The interest rates mentioned in the shop windows are usually effective rates under the best possible conditions . As a rule, however, these optimum conditions are simply not met by the majority of consumers. Rather, banks calculate an individual interest rate in which factors such as creditworthiness, individual life situation and income situation are taken into account. The result is that so individual and thus binding real credit offer is possible.
Credit Error Number 4: Loans without Schufa do not exist or are fraud models
Both in principle wrong! Many people still believe that offers for a loan without Schufa are simply cheating and this type of loan does not exist. What is wrong, however, because just because banks reject applicants due to negative Schufa entries does not mean that these loans do not exist. On the contrary, there are reputable credit intermediaries , who can help to obtain a loan despite negative SCHUFA due to very good personal contacts and in-depth knowledge of the matter.
Credit Error Number: Loans without Schufa lead to the debt trap
An error that unfortunately continues to be fed – unfortunately also by supposed financial experts – credit without SCHUFA lead into the debt trap. Again, it must be said: Unfortunately wrong! From a statistical point of view, the following are the most common causes of debt: unemployment, divorce, disability, uncontrolled consumption, etc. The inclusion of a loan without SCHUFA usually does not appear as a reason for indebtedness in these statistics .
Also worth knowing: From a purely statistical point of view, MRP is the type of loan that has the highest proportion of indebtedness among all types of credit .