Relocation credit – Secure favorable conditions

 

Private or professional circumstances may necessitate a change of residence. Brokerage, renovation, new furniture and moving vans – with the change of home, many expenses come to consumers. A relocation loan ties in with this and provides the financial means that are required to smoothly manage the move. However, in order to receive the necessary support from a bank, the future borrower must enter into an installment payment agreement. He pays for the repayment of the loan granted in predictable and constant installments. The following article shows how the move can be financed despite low equity and what needs to be considered when taking out a loan.

The most important thing in the overview:

The most important thing in the overview:

  • The moving loan is suitable for private individuals who are about to change apartments and who do not have enough savings.
  • The average moving costs with a moving company for a one-room apartment are between 500 and 1,000 dollars.
  • A moving loan comparison helps to find the cheapest financing offer.

Who needs a moving loan?

Who needs a moving loan?

If you want to change your apartment, you have to consider a few things. A lot of organization is necessary to quickly and safely transport all the belongings to the new home. In addition, every move is always associated with financial expenses, which may be higher than your own savings allow. The purchase of new furniture can be postponed in an emergency, but there are expenses that arise with or before the move date.

There is a moving loan for consumers who cannot cover these costs from their assets. With the financial support of the lender, borrowers can set up their new home according to their wishes, organize the safe transport of their property and, if necessary, do renovation work in the old or new home.

Note: Students who have little or no income also benefit from a loan for the move. The loan enables them to move to a new home near the university without the financial support of their parents.

What expenses are incurred when moving?

What expenses are incurred when moving?

The expenses incurred when moving relate to your own circumstances and wishes. For example, those who already have a large home furnishings and do not have to make any new purchases move cheaper than people who also have to invest in new furniture. In addition, a distinction must be made as to whether the move is local or whether the property needs to be transported further, for example across national borders. In this case, the costs add up to a significant value.

Consumers need to calculate the following costs for their move, regardless of whether a carrier is hired or not:

  • Deposit for the new apartment (up to three months’ rent)
  • Possibly double rental charges
  • Brokerage commission (two to seven percent of the purchase price or a maximum of two months’ rent)
  • Renovation costs for both apartments
  • Acquisition of new furniture and expenses for its delivery
  • Costs for re-registration and change of address of documents (30 to 100 dollars)
  • Reregistration of electricity, gas and internet (20 to 70 dollars)
  • Other expenses, for example for the forwarding order (from 20 dollars)

That’s how much a moving company costs

In principle, the following average moving costs can be expected if a moving company changes its regional residence:

Square meters of living space so far Average moving costs
Up to 35 square meters 500 to 1,000 dollars
35 to 60 square meters 700 to 1,200 dollars
60 to 85 square meters 1,050 to 1,450 dollars
85 to 120 square meters 1,200 to 2,000 dollars

Composition of costs

Transporter : In most cases, customers receive a complete offer from the moving company that does not explicitly break down the costs for the transporter. It is important for consumers to pay attention to whether the petrol expenses are already included in the offer.

Remuneration of the employees : The most expensive point when changing house by a moving company is the wages of the employees. Even if this seems very high, consumers should keep in mind that these are professional employees who can load the property quickly and with targeted actions. While moving on your own can take a day or even several days, moving companies can usually move within a few hours.

Packaging material : As a rule, the customer receives the packaging material from the moving company. If he is unable to store his property himself, the company’s employees will take care of it. However, it is cheaper to take care of the packaging of the items yourself, so that the moving company is only responsible for the transport and the clearing out of the apartments.

Tip – save taxes when changing apartments: If you hire a professional moving company, you can claim part of the expenses for household services. Consumers who change their place of residence for work-related reasons and move closer to their workplace benefit even more.

Self-relocation costs

If you move without a moving company, you can save significantly more money and keep the loan amount for the moving loan lower. In addition to the independent costs such as the deposit, the following expenses must be taken into account:

Transporter : If you don’t have a large vehicle, you have to rent a van from a rental car company. This is expected to cost between 150 and 250 dollars per day, plus petrol and insurance. It is usually cheaper to rent the vehicle during the week because the prices are higher on weekends.

Moving boxes and packaging material: Moving boxes and packaging material are available in any hardware store. In terms of costs, consumers should calculate 30 dollars per room. Often acquaintances still have to hand in boxes and crates.

Catering of helpers: If friends and family members help with the move, they should be tasted accordingly. This includes providing drinks as well as food. Basically, you can expect 5 to 8 dollars per person.

Parking permit: Especially when moving to the city, it may be necessary to request a parking permit. This ensures that there is enough space for loading and unloading on the day of the move. However, consumers do not receive the permit free of charge, setting up a private stopping ban costs between 80 and 170 dollars.

What loan amount is required to finance the move?

What loan amount is required to finance the move?

Consumers can apply for a moving loan from a bank to cover the expenses associated with moving home. How high these will be approximately can be calculated using the average moving costs or a list of all expenses incurred:

Relocation-related expenses: moving companies, transporters, packaging material, food for the helpers

+ Housing- related expenses: brokerage fee, deposit, rent, re-registration, purchase of new furnishings

= Cost of moving

Finally, borrowers should review what financial resources are available to them. Savings must be taken into account, as well as the deposit, which will be repaid by the previous landlord. Consumers shouldn’t factor in all of their savings for moving so they still have reserves when needed.

Own financial resources (less reserves) – expenses for the move = required loan amount

Fund the move: what are the options?

 

As a rule, consumers use a classic installment loan to finance the move. They receive the desired loan amount from the bank and pay it back in installments over a specified period. The following applies: the longer the term, the more expensive the interest and thus the loan. Therefore, borrowers should strive for a quick repayment to keep the cost of the loan as low as possible. Since the conventional installment loan is not earmarked, borrowers can finance all the costs of moving with the loan. You do not have to provide proof of expenses to the bank.

Tip – Compare conditions: In order to finance the move cheaply, consumers should compare different lenders. The loan calculator from Across Lender makes it possible to compare different offers based on the amount of financing required and the desired term. With the move loan comparison, borrowers can quickly and easily find the cheapest bank.

Moving credit for students

Many students leave their homeland and have to finance a move because of their studies. But in university cities like Munich, Cologne or Heidelberg, the rental prices are high, so there is hardly enough money left for the new home. In addition, students have little or no income, which is a potential risk for banks.

But students who have to finance a move because of their studies can also get an installment loan without income. This is possible if they ask their parents for a guarantee. In this case, one parent or both will step in if the student can no longer pay the installments themselves. Income from a part-time job can also be used as security.

Surety bond

Some tenants want to take out a loan to pay the deposit. For them, the deposit guarantee is a good alternative to an installment loan. The customer does not take out a loan for this, but has the deposit secured by an insurance company or the bank. If the deposit is due upon moving out, the depositor bears the costs. Until then, the customer pays the company a fixed amount each year.

What needs to be considered with the moving loan?

What needs to be considered with the moving loan?

Anyone wondering how to finance the move will likely consider a loan. However, the need for financing should not be neglected, since a moving loan is always associated with additional costs. It is cheapest to finance the change of residence with your own savings or with the help of friends or family members.

Adjust rates to financial options

In principle, it should be in the borrower’s interest to repay the move loan as soon as possible in order to benefit from low interest rates. However, he should choose the monthly installments in a ratio that corresponds to his financial possibilities. Overly high rates can lead to financial bottlenecks and threaten the existence of the borrower.

Check contract contents

Many banks offer their borrowers conditions that allow them to make their contract more flexible. For example, they give them the opportunity to temporarily suspend repayment in the event of payment difficulties. Since a moving loan is mostly a manageable loan amount, free repayments are particularly interesting for borrowers. These allow them to pay a fixed amount annually in addition to the monthly repayment in order to pay off the loan more quickly.

Compare offers and take out moving loans

Compare offers and take out moving loans

If you are planning your move and would like to take out a loan for financing, you can use the Across Lender loan comparison to compare offers from various banks free of charge and anonymously. Afterwards it is possible to get professional telephone advice again. Together with a credit advisor, the financing needs can be precisely planned and the appropriate moving loan can be taken out.

Choosing the right type of loan for your project

An installment or personal loan, allocated or without reason, a reserve of money,… Not easy to choose from the range of solutions available in the consumer credit category.

Choosing the right type of loan for your project

Choosing the right type of loan for your project

There are several questions to ask yourself to determine the type of credit that best suits your needs and that way get the best rate.

I want to finance a good or service for which there is an assigned loan formula

I want to finance a good or service for which there is an assigned loan formula

Always check if there are so-called “assigned” (or conventional) installment loan offers for your financing needs.

This type of loan has certain advantages:

  • a rate lower than what you could get with the other possibilities,
  • a loan related to the financing of movable property (not real estate) or a service.

If the rates of the affected loans are more attractive, it is due to the fact that the risk taking of the lender is less. The purchased good can be resold, the service ordered aims to increase the value of another good, … The bank or the credit company therefore has guarantees to be able to recover its money.

The borrower also has more security. Because of the connection of credit to a good or service, if the sale were to be canceled for any reason, the loan would also be canceled at no additional cost.

Examples of goods and services that can be financed with an allocated installment loan:

  • for a used, new or ecological car, a car loan is the ideal candidate,
  • for a new or used motorcycle, there are motorcycle credits (often grouped together for motorbikes),
  • to finance the purchase of a motorhome or finance the purchase of a van, financial organizations also have solutions which are sometimes the same as car loans and sometimes entirely dedicated to this type of vehicle,
  • to carry out work in his home, the credit companies offer work loans which are even more advantageous if the work is intended to save energy.

And if not, there is always the possibility of the personal loan or the reserve of money

And if not, there is always the possibility of the personal loan or the reserve of money

If you cannot find a solution in the category of allocated installment loans, you can opt for a personal loan or a reserve of money. These solutions do not require any specific reason. We lend you a sum of money that you can use as you see fit.

Between personal loan and reserve of money, my heart swings

The personal loan will allow you to borrow a greater or lesser amount. The credit rate and the duration of the repayments are fixed from the start. Financial organizations present it under different names (wedding credit, travel credit, all purpose credit, etc.) but it is often the same product.

Example of situations where you can consider a personal loan:

  • for your interior, a decoration and development loan can allow you to finance the purchase of furniture, a new kitchen, finishing work such as painting or new parquet, etc.
  • to organize your wedding and organize a beautiful reception,
  • to go on vacation and finally make the trip you’ve always dreamed of,
  • to help you pay for studies, the school fees, the rental of a kot, school materials, books, a computer,…
  • for whatever purchases, a TV, a computer, a smartphone, to make a gift, a jewel, …
  • to face a difficult situation, like when paying taxes for example or for an unforeseen expense,…

The money reserve works differently in the sense that this credit formula is renewed at the rate of your repayments. It is an opening of credit which grants you a sum of money available as long as the contract lasts. The solutions offered are very flexible and let you define yourself the rate at which you repay the money withdrawn. You only pay interest when you start the reserve. In some cases, this revolving credit is associated with a payment and withdrawal card. Otherwise, the money will be deposited into your bank account.

Example of situations where a reserve of money will be useful:

  • to deal with all the unexpected of everyday life,
  • for temporary liquidity needs,
  • to respond to spontaneous desires with flexibility.

Immediately make money with an online instant loan

Anyone who wants to fulfill a wish quickly, but does not have the small change required, can only get a loan. However, the processing of the loan application is usually not made so quickly and if time is short, you have to look for financing options. A good option here are instant loans, which are now being granted by more and more banks. It is not only the branch banks that grant this type of loan, but above all it is the direct banks on the Internet that can score here with excellent conditions. As a definition: An instant loan is not a loan that is actually granted at the same time as the application is made, but it usually takes around 48 hours for the applicant to transfer the required money to the bank Stops. However, compared to a normal application process, it can of course be spoken of “immediately”.

The procedure is similar to a usual application procedure for a loan

The procedure is similar to a usual application procedure for a loan

After a (hopefully detailed) comparison of possible online banks or their offers, the interested party can immediately apply for a loan on the Internet. It is possible to put your own signature under the internet document. The prerequisite for this is the legal age and the existence of a regular income from non-self-employment. For the latter point, proof is required from the bank, which is done by copying and sending the last three proof of earnings. Some banks also make do with the last salary slip, which mainly depends on the amount that should be borrowed.

The bank now carries out a preliminary review of the application documents and provides the applicant with a decision within 24 hours that the application has been approved or rejected. As I said, this is a preliminary result that can still change in one direction or the other. The applicant’s creditworthiness is still pending. This is also carried out by the online banks with an instant loan. The Credit Bureau is asked about this. If there is a negative entry, an immediate loan is generally not approved. Otherwise, the applicant will now receive the required money in his account after another 24 hours.

Online banks lending advantage

Online banks lending advantage

The advantage of lending by the online banks lies above all in their better conditions, which are also noticeable with an instant loan. In general, interest rates are lower, and this also applies to processing fees. Depending on the bank, these become due, but there are now also online banks that do not charge these fees altogether. This means that the instant loan is a very cheap way of getting money quickly, even if the interest to be paid is of course much higher than for a loan with a normal processing time. The banks can already pay enough for the short amount of time until the money is paid out.

Immediately cash with a loan without Credit Bureau

A credit without Credit Bureau is the perfect secondary loan and a good solution if you need money quickly in a discreet way. In contrast to normal loans, which are registered with the credit report, a loan without Credit Bureau does not appear there. And no Credit Bureau information is required to grant the Credit Bureau-free loan. You can therefore also get such a loan with a very bad Credit Bureau.

Good reasons for a loan without Credit Bureau

Good reasons for a loan without Credit Bureau

Another reason why borrowers choose a loan without Credit Bureau: The loan is processed absolutely discreetly – and no one learns about it that you do not trust yourself. Neither your employer nor your bank will receive information about your loan without Credit Bureau. This is precisely why the Credit Bureau-free loan is suitable as an additional loan for existing obligations.

A loan without Credit Bureau leaves no trace

A loan without Credit Bureau leaves no trace

If you need a small loan, but want to avoid any effects on future or ongoing financing, then a loan without Credit Bureau is well suited. Interest rates are usually somewhat higher than regular loans. From the perspective of many customers, this small disadvantage is offset by the advantages such as discretion, uncomplicated lending, etc.

Discreet cash without Credit Bureau

Discreet cash without Credit Bureau

The acceptance criteria are of course less stringent for a loan without Credit Bureau than for a conventional loan. Negative entries in the credit report explicitly play no role here. With the help of receipt credit, you can get a loan even if you have already received rejections from various banks. With “normal” banks, bad credit is in many cases synonymous with an automatic rejection of your loan request. In contrast, the bank partners with whom Fine bank has been working successfully for many years also grant loans to interested parties with negative Credit Bureau information. Since your credit request with Fine bank is free and non-binding, you can actually only win. Here you can go straight to your loan without Credit Bureau.

Cash advance – apply in 5 minutes

The car has to go to the workshop, the washing machine breaks, a high additional payment is due and Christmas is just around the corner – sometimes consumers come unexpectedly into a financial emergency. In such a situation, those affected quickly need cash and look for potential lenders. A so-called cash credit can help. The following article shows what this is, how it can be included and what consumers should pay attention to.

What is a cash advance?

What is a cash advance?

Note: Especially in financial need, those affected sometimes lose their judgment as to the seriousness and fairness of a (credit) offer. The risk of an inexperienced or overly hasty approach by potential borrowers is that they conclude a cash advance with a dubious lender at overpriced prices. Finding out in advance and comparing offers with one another only takes a few minutes, but usually brings high interest savings.

A cash loan is a loan model in which the loan amount was originally paid out in cash. Customers of a branch bank went to the counter for this purpose, customers of a direct bank received the money from a courier service. However, it has now become established that lenders also use the term cash credit to make lightning transfers to a borrower’s checking account. In any case, a cash loan is paid out within a short time, sometimes on the same day. Nowadays, applications are made almost exclusively online.

Note: A clear distinction between cash credit and instant credit is not possible in practice, the terms are used interchangeably. The overdraft facility (overdraft facility or overdraft facility) is also referred to as a cash advance. The account holder can overdraw the account up to an agreed credit line. Cash payment at the ATM is possible around the clock. Consumers can repay the overdraft facility at any time and determine the amount of the installments themselves. However, this form of cash advance is expensive and should not be used in the long term. Whenever possible, it is advisable to settle an overdraft facility as soon as possible.

The advantages and disadvantages of a cash advance

benefits disadvantage
Rapid availability. Cash loans are usually more expensive than traditional installment loans.
Often no Credit Bureau check, so the cash credit is also available for people with a negative Credit Bureau entry. Anyone who has had payment difficulties for a long time can slip into the debt trap if the cash loan is too high.
Self-employed persons, low earners and other groups of people who have difficulty getting a loan also have the opportunity to raise money with the cash loan. The uncomplicated application and approval tempt you to borrow more money than necessary.
Online application possible at any time, even on weekends. High repayment rates in a comparatively short time.

Why is a cash loan more expensive than a classic installment loan?

Why is a cash loan more expensive than a classic installment loan?

From the bank’s point of view, issuing a cash loan involves comparatively higher risks because the creditworthiness is only checked superficially. The potential borrower only needs to provide a few details on a form and the lender relies on the accuracy of the information provided. A Credit Bureau test is often not carried out. The bank can pay the increased risk of a possible default and the quick settlement by charging the cash loan with higher interest rates.

Who is the cash loan for?

Who is the cash loan for?

A cash credit is suitable for consumers who need a manageable amount of money within a short time. Amounts between 500 and 5,000 dollars, which are usually granted as part of a cash credit, are suitable for bridging a temporary financial emergency. However, if consumers have had financial difficulties for a long time, the cash credit could lead them to fall even further into the debt trap.

The cash loan is primarily designed for private individuals, it is a consumer loan for private purposes. Sometimes, however, the self-employed also use this funding in order to be able to make short-term purchases, for example computer hardware, to run their business. In this situation, the self-employed are advised to take out a conventional installment loan on better terms and only to use the cash loan if there is no other option.

How does a cash advance work?

How does a cash advance work?

With a cash loan, borrowers submit a loan application online and receive a binding commitment or rejection within 24 hours. A cash credit is linked to an immediate payment, whereby the payment is made in cash or as a transfer to the checking account. In most cases, repayment starts almost immediately or after a short break in payment. A cash loan is often to be paid off in comparatively high installments and within a relatively short time. Loan terms of up to 96 months (rarely longer) are also possible, but in view of the high interest rates this is not an economically sensible decision.

Must a specific purpose be specified?

Borrowers of a cash loan do not have to specify a purpose. You can freely dispose of the money. As soon as the application has been checked and the payment has been made, borrowers have access to the loan amount and can use it for any purpose.

What are the requirements for cash credit?

 

To receive a cash loan, borrowers must be at least 18 years old and have regular salary receipts. Generally, borrowers must be creditworthy and creditworthy:

  • Anyone over 18 who is not under guardianship is eligible for credit.
  • Banks check the creditworthiness based on different criteria (salary, work situation, existing loans).

Note: In the case of a cash loan, only a few details are requested and checked compared to classic installment loans, for example the regular receipt of salaries.

What characterizes a reputable provider of cash advances?

What characterizes a reputable provider of cash advances?

Reputable providers of cash loans are usually well-known direct banks that have a corresponding banking license. Online offers from well-known branch banks can also be classified as serious.

Reliable providers can be reached by phone and answer all questions that arise in connection with a loan. In addition, they do not urge anyone to sign a contract. If you are not sure whether a lender can be trusted, you should trust your gut feeling and refrain from financing.

How can I take out a cash loan?

How can I take out a cash loan?

Potential borrowers who are looking for a cash advance have several options. You can ask your own bank or search for providers using relevant search engines. However, there is a problem: The time required for manual search is quite high, which in turn means that not enough alternatives can be used to compare the offers. Borrowers often pay that with high interest rates and poor repayment modalities.

Fast and secure borrowing from Across Lender

If things have to go quickly, the loan comparison at Across Lender is a transparent, reputable and helpful source for finding a loan. Although consumers do not receive traditional cash advances, the installment loans offered are also processed and paid out quickly. How to apply:

  1. Interested parties simply enter the desired loan amount and can then select a term. The term “free use” should be selected for the intended use.

  2. Clicking the “Recalculate loans” button generates a list of offers that are generally available.

The presentation of the main loan terms is particularly consumer-friendly. Potential borrowers immediately see the amount of the monthly installment and find out the range within which the borrowing rate and the annual percentage rate lie. Sorted by price, the cheapest provider is at the top and the most expensive at the bottom.

Tip: Another plus is the additional information for each individual loan. Consumers receive the essential key data of the loan via the info button for the tariff details. For example, you will learn how the credit check is carried out, how high the processing fees are and whether special repayments are offered. Further markings indicate, for example, which loans are offered as an instant loan and which loans are particularly easy to apply for.

So well informed, consumers can quickly make a decision as to which provider is of interest to them. Consumers only receive a concrete offer after their request has been received by the bank.

4 tips for a cheap cash advance

4 tips for a cheap cash advance

The cash loan is one of the most expensive loans for consumers. They should be careful when choosing the right provider. With these tips, prospective borrowers save money:

  1. Keeping the loan amount as low as possible, that expresses the total costs.
  2. Make the loan term as short as possible, which also ensures lower overall costs.
  3. Compare several offers to find the cheapest provider.
  4. Compare the loan terms with one another: Cash loans with special repayment rights offer the option of repaying a loan early and thus shortening the term. This reduces the total loan costs.

Tip: If you want to quickly compare several offers from different providers, you can use the free and anonymous loan calculator from Across Lender. Here you can find all the relevant information that loan seekers need to be able to make a decision quickly.

Debt restructuring despite poor creditworthiness

Processing a debt rescheduling despite poor creditworthiness can be really difficult. But it is not entirely impossible. With a debt restructuring, existing loans are replaced and combined into a new loan. This can help make installments affordable again. Borrowers also have the option of changing the amount of the loan itself, the term of the loan and, accordingly, the amount of the monthly charge. A debt rescheduling despite poor creditworthiness can either take place at the previous lender or at another bank.

The aim of the debt restructuring will be faster debt relief with the lowest possible borrowing costs. With a poor credit rating, it is of course somewhat more difficult to persuade the lender to agree to rescheduling. Foreign banks always check their creditworthiness and quickly determine if a loan applicant is not creditworthy. As a rule, they are then not willing to buy a foreseeable risk, so that inquiries regarding debt restructuring are mostly unsuccessful.

However, because there are very different reasons why someone suddenly has a bad credit rating, it is not entirely impossible to get debt restructuring approved despite a poor credit rating. These will always be individual decisions about which no general statements can be made at this point.

What options exist for debt restructuring

What options exist for debt restructuring

If the applicant has a negative Credit Bureau, a third-party bank will usually not be willing to provide a loan for debt rescheduling. Unless the loan applicant is able to provide other collateral in the form of a solvent guarantee.

Nevertheless, the possibility of debt restructuring is more likely to be with the house bank. Here the customer has the advantage that he is known, that the bank has insight into his financial situation and knows the customer’s payment behavior. However, it is also important here what should be rescheduled and why the credit rating is currently poor. The situation is extremely unfavorable if no income is currently being earned.

On the other hand, borrowers who want to reschedule ongoing mortgage financing have many better chances. These loans are usually secured in the land register. If the customer has paid his installments on time in the past, debt rescheduling is usually granted without any problems. Sometimes, however, banks also require a solvent guarantee as additional security.

The number and amount of the loans to be repaid usually also play a role in the decision. Consumers have fewer problems with Credit Bureau entries, which are due to unpaid bills from telephone or electricity providers. If negative Credit Bureau entries are already noted as done, rescheduling is also easier to obtain.

What should you watch out for when rescheduling despite poor creditworthiness?

What should you watch out for when rescheduling despite poor creditworthiness?

Anyone who has opened up a particularly cheap way of financing should do everything in advance to put the negative Credit Bureau in order. If this is not so easy, the personal interview with a loan officer at the bank should be sought. Banks are often now ready to work with customers to find solutions to financial problems. After all, they themselves are interested in getting all of their borrowed money back. Borrowers should, however, avoid getting involved in securing the debt rescheduling loan as far as possible.

There is little prospect of debt restructuring despite poor creditworthiness, who have repeatedly had arrears on current loans that cannot be shown as attachable income at the time.

Study loan: comparison of credit solutions

When we think of student loans, we often think of the United States immediately, given the high cost of studying there. Unfortunately, studying in Belgium is also far from free. Minerval, syllabi, transport, computer, etc. are just a few examples of the fees you will have to pay. If in addition, you want to live with a student or go study abroad, you may need a little financial help.

What are the different options available to you?

What are the different options available to you?

Self financing

Financing your studies yourself obviously remains the most interesting solution, but unfortunately, this is not always possible.

Scholarships

Under certain conditions, the regions can grant scholarships to young people to help them finance their studies. You can obtain more information on the scholarships granted by the Wallonia-Brussels Federation. They will be granted according to your income or the income of your parents.

The Different Types of Study Loans

Borrow money from a public body

In the absence of a scholarship or own funding, you still have the option of using a study loan to finance your studies. You can make your request to public bodies or to a financial institution. Higher schools or universities sometimes also offer interest-free loans for students.

Borrow money from a financial institution

Most financial institutions offer loans at preferential rates to students, but this is not always the case. The offers can also vary greatly from one institution to another. Compare the different offers that are available to you before making your choice: by comparing and playing the competition, you can save a lot of money!

When you have made the decision to take out a loan, you must then consider the following question: what form of credit is best suited to my profile?

Student credits can take two forms:

You can first opt ​​for a personal loan. In concrete terms, the bank will lend you a certain amount which you or your parents will have to repay monthly. The amount will be paid directly into your account, which will allow you to finance certain costs, such as the school fees, books, etc. You know in advance the duration of the study loan, the monthly payments and the interest rate, which will allow you to avoid unpleasant surprises.

Another possibility is the opening of credit via a reserve of money. The financial institution will allow you to go negative when you need it, up to the maximum limit of your money reserve. During your studies, you only have to pay interest, the amount borrowed must be repaid within 6 months after the end of your studies. You know in advance the limit of your money reserve, the interest rate and the maturity date of your credit. This form of credit is more flexible than the installment loan, but take into account that you will have to repay your credit within six months after the end of your studies, hence the importance of quickly finding work once you graduate.

Can you take out a study loan yourself?

Can you take out a study loan yourself?

The study loan will generally be granted to your parents, unless you already have monthly income. Most students have a repayment capacity that is far too low to be granted this type of loan.

How to Apply for a Study Loan Online?

How to Apply for a Study Loan Online?

  1. First do an online simulation
  2. Then submit your request online
  3. After the analysis of your request by the financial institution, you will receive an offer
  4. Return the signed contract by post, if you wish to benefit from the offer
  5. You can start using the credit.

Hoping to have guided you in your efforts to carry out your studies

How does credit request Credit Bureau entry

Load credit without Credit Bureau or despite Credit Bureau entry: (un) possible? Few customers know how risky such a loan is despite Credit Bureau. Getting a loan with a paid Credit Bureau entry is not easy. A loan application for funding was immediately rejected. For more information, see Financing a negative Credit Bureau entry.

Credit for a Credit Bureau booking that has been settled

Credit for a Credit Bureau booking that has been settled

A loan is not granted without a previous Credit Bureau examination. If you have negative bookings, you will only receive a negative answer to a loan application. In the Credit Bureau, the negative entry means that the consumer is neither entitled to a credit, nor can he conclude a mobile phone contract or hire purchase. The affiliated banks and companies report unpaid claims or loans to Credit Bureau.

A completed Credit Bureau entry is positive, but it is not easy for you to grant a loan with a completed Credit Bureau entry. It can be discussed whether the period from three years to the final deletion of the Credit Bureau entry is justified. For some debtors, this booking still impairs their creditworthiness and most credit institutions do not grant a credit with a Credit Bureau entry that has been settled under these conditions.

In such a case, the borrower must accept a higher interest rate. Such a calculation of credit rating-dependent interest payments is widespread and is also accepted by consumers. They prefer to pay more interest than to postpone the loan entirely. Those who prefer to avoid the whole can get a loan in Switzerland through the financial services sector.

The Credit Bureau is of no importance in the credit check. All he has to do is have a permanent job, live permanently in Germany and be 18 years old. However, the loan amount is limited. Under these conditions, there is always the possibility at home and abroad to grant a loan with a paid Credit Bureau entry.

Debt restructuring with Credit Bureau entry

Debt restructuring with Credit Bureau entry

If it is a debt rescheduling with Credit Bureau entry, it must be clarified in advance whether it is a negative booking or just a booking via the other current loan. Rescheduling with the Credit Bureau entry is in principle not an issue, because if there were no other loan, it would not have to be rewritten.

If the Credit Bureau is positive, it will look different. With the negative Credit Bureau, rescheduling with a Credit Bureau entry becomes difficult, however, because the credit institutions recognize the credit default risk and the rescheduling will generally not be sufficient. There are a number of reasons for rescheduling debt. Often times, consumers have made several loans over time, which leads to a quick loss of overview.

In such cases, the situation can be remedied by replacing the existing loans and merging them into a new loan. If the customer who wants to reschedule the receivable does not have a bad credit rating and is otherwise of good credit standing, the credit institutions will agree to the loan applications for rebooking without problems.

The same applies if rescheduling can save costs because an expensive loan is replaced by a loan on more favorable terms. But if you can no longer pay your installment because the financial situation has changed to your disadvantage and you have already received a Credit Bureau entry, you will have problems if you want to carry out debt restructuring with the Credit Bureau entry.

Anyone who receives a rejection from the house bank in the event of a scheduled postponement should not stop immediately, but should try their “luck” with several house banks. Ultimately, a credit broker may also be able to help, because he also has connections to less risk-averse banks and also approves loans if there is a Credit Bureau entry.

If you are already completely in debt, rescheduling the debt will not change the situation. In this case, it is better for the borrower to contact a debt counseling center to get help with their financial problems.