The payment behavior of borrowers in Germany is good. The credit agency private credit came to this conclusion in their current ‘Credit Compass 2018’. For example, 90.6% of the people registered at private credit only receive positive information. The repayment behavior is correspondingly high: in 2017, a total of 97.8 percent of all installment loans were properly serviced.

The overall positive credit history of the Germans is also due to favorable macroeconomic conditions. A current high employment rate contrasts with low inflation and low interest rates.

Increasing interest in installment loans

This is also noticeable in a low degree of over-indebtedness. Among those registered by private credit in 2017, 90.4 percent were not threatened by over-indebtedness. At the same time interest in installment loans increased: in 2017, a total of 27.2 million inquiries were made as part of the determination of credit conditions by banks to the private credit – an increase of 18.9 percent compared to the previous year. And the number of new installment loan agreements exceeded the 8 million mark for the first time in 2017, at 8.01 million (an increase of 4.6 per cent on the previous year).

The total number of current installment loans was the private credit 17.99 million announced on 31.12.2017, after all, 3.5 percent more than in the previous year.

Banks offer flexibility and low lending rates

Banks offer flexibility and low lending rates

The fact that more and more loans are being lent despite the good state of the economy also has to do with the fact that borrowers always have cheaper and more flexible models at their disposal. Also, the lending decision for a good online bank is made today within a very short time.

All necessary steps for a successful loan can be done via PC or smartphone. This includes the identification via webcam.

And what happens if you change your mind about the loan? According to the Civil Code (BGB), borrowers are entitled to a 14-day right of revocation for loan agreements. However, Bank Direct goes one step further and even grants a prolonged right of withdrawal. Within 30 days, the contract can be revoked without giving reasons in writing (eg letter, fax or e-mail). To meet the deadline, the timely dispatch of the revocation is sufficient.