cash loan online loans show financial threats

The study loan, for example, already reveals its target group in the name, while a debt restructuring is attractive to all those who are not satisfied with their current credit conditions. Those who urgently need money can meanwhile take out a so-called lightning loan or express loan. Property owners, on the other hand, are able to take out a mortgage loan through a corresponding entry in the land register.

The most important forms of credit

The most important forms of credit

The decisive distinguishing features of personal loans, however, are the typical and maximum amount of the loan, the term and, of course, the interest rate. There are also individual features. These are the most important types of credit:

line of credit
  • Very flexible, claimable at any time by overdraft
  • Height: About two to three times the salary
  • Very high interest rates (on average over 10 percent)
  • If the money is paid out, the credit line is also a cash advance
installment loan
  • Very flexible, as on-demand loan, can be redeemed at any time
  • Height: about 2,500 to 50,000 euros
  • Changing interest rate (in the amount mostly between credit and installment credit)
Securities lending
  • Lending of the securities account, usable at will in appropriated form
  • Flexible, because on-demand loan
  • Credit without
  • Amount: Maximum 50,000 to 250,000 euros or 50 to 80 percent of the deposit value
policy loans
  • Lending the life or pension insurance
  • Height: Up to 100 percent of the current value
  • credit without
  • Interest rate varies widely between providers (between 4.5 and 8.7 percent)
  • Lack of eradication can tear gap in old-age provision
small loan
  • Small loans are all loans up to 5,000 euros
  • Usually quite uncomplicated available, also as Sofortkredit and quick loan
  • Interest rates vary greatly depending on the form and provider
  • Fixed income usually sufficient as collateral
  • Classic consumer credit
Online credit
  • Is often determined by credit calculator and completed online
  • Mostly uncomplicated processing, also as a quick loan
  • No individual advice on site, but the online loan is often cheaper
Private credit
  • Lender comes from the environment or is (partly anonymous) mediated – for example, via Internet platforms
  • Credit also possible without SCHUFA
  • Interest rate varies greatly, but sometimes cheaper than at the bank
  • Personal and social motives of the lender may play a role in the grant
  • Depending on the form as a quick loan possible
  • Often a small loan or several

Credit costs – you should pay attention

Credit costs - you should pay attention

There are several factors involved in the cost of a loan. If you want to assess whether an offer is attractive or not, you should consider the following:

  • Annual percentage rate: It is the most important benchmark and should not be confused with the nominal or borrowing rate. Using the APR, you can calculate the total amount that will ultimately have to be repaid in total.
  • Processing fee: A fee may already be due for processing your application.
  • Flexible interest rates: With long-term loans, in particular, interest rates are not always fixed for the entire term. Depending on the interest rate development, this can be prejudicial or disadvantageous.
  • Additional Fees: Even if you deviate from your credit plan, this may result in fees, such as an early repayment penalty for early repayment.

Online credit is often available at particularly favorable terms. Here, customers benefit from the costs that direct banks save by renouncing branches and personal advice.

Lenders: These are the options you have

Lenders: These are the options you have

The usual contact point for a personal loan is the bank – not for nothing, it is also known as a bank. From small loans to larger loans, it lends money in various forms. But the bank is not always the right contact person. This may be due to the fact that the conditions appear unattractive or that they denied a loan due to lack of collateral. For example, she usually does not give credit without proof of income. Two alternatives are the employer loan and the loan from private.

In the case of employer credit, the company acts as the lender. Of course, not every company is willing or able to do this, but in some industries – such as banking or insurance – this approach is quite common. It is important here that all modalities are contractually adhered to so that the loan can not be interpreted as a pecuniary benefit. If you are considering an employer loan, you should ask yourself whether you will continue to work for your company for the term – otherwise, the amount may be due prematurely.

With the credit from private, the donor comes either from the environment of the lender or offerer and prospective customer are mediated each other. For this purpose, there are now appropriate Internet platforms that offer the service for a commission. In this way, for example, a loan for the unemployed or people with a negative Schufa entry can be conveyed if they persuade their donors personally or with their purpose.

Credit without Schufa: Swiss Credit

Credit without Schufa: Swiss Credit

A special case is the so-called Swiss Credit. Named for its origin, it was initially characterized by the fact that he was awarded over 3,500 euros and 40 months of maturity at a mostly double-digit interest rate. Meanwhile, the term Swiss credit is often used for all loans granted without SCHUFA query. Another synonym for him is “Bon Kredit” after one of the most famous providers.

For people with a negative SCHUFA entry, Swiss credit is one of the few ways to temporarily borrow money. However, if the Schufa query does not fail due to appropriate collateral – such as the policy loan – Swiss credit is usually accompanied by very high interest or fees. This balances the risk of the lender. For this reason, it makes sense to repay such a loan quickly. An advantage of payday loan payday loan may be that it is often granted as a cash advance and thus grants anonymity.

Credit for the unemployed

Since the salary lacks the usual security, the jobs grant credit for the unemployed. Even recipients of a relatively high unemployment benefit I have problems obtaining a loan because the benefit period is limited and then the changeover to unemployment benefit II is imminent.

Some providers advertise a loan without proof of income or specifically a loan for the unemployed. However, they usually charge very high fees or require other forms of collateral.

However, there are alternatives to a real loan for the unemployed: if you have valuables, you can not only sell them, but mortgage them in the pawn shop – with the risk that they will be withheld if the repayment is not made. In addition, a loan for the unemployed is possible if someone else vouches for them. After all, unemployed people can, luckily, find a private lender to give them a loan. Those affected should, however, very carefully consider whether they want to expect in their situation the additional burden.

Credit insurance – protection against risks

Credit insurance - protection against risks

Regardless of how exactly the repayment is planned in advance, a loan is always associated with the risk that it can not be repaid as planned. A protection here offers the credit or residual debt insurance. It intervenes if the borrower becomes unemployed or ill. In the event of death provides protection for the bereaved.

Of course, a residual debt insurance also means an additional burden. Therefore, it should be carefully considered whether it is really necessary. With a small loan, or even with the so-called housewife credit, for example, they can be dispensed with. And even if other policies step in in an emergency, such as an accident or term life insurance, additional credit insurance does not necessarily hardship.