Basically, a lightning loan is characterized by its speed. This means that the processing time is usually very short. Depending on the credit provider, a credit decision is made within 24 hours and a payout of a few days. But the speed of a lightning loan is only one aspect, another is the award without private credit.
What is a lightning loan without private credit actually?
- You have to meet these requirements
- Which special forms / lower forms exist
- What are possible pitfalls?
- What can you do with bad private credit?
- Interest rate developments in credit
What is a lightning loan without private credit actually?
A loan without private credit means that the lender, usually this is a bank or a credit intermediary, waives a query of private credit. The private credit is a central and private register in Germany, in which all people are covered, if they do not pay their bills, if they have to provide asset information or if they are in bankruptcy.
You have to meet these requirements
If you want to take out a loan, you must have the appropriate credit rating. This means you can have little or no debt and you have a regulated income. If you meet these
Which special forms / lower forms exist
In a flash loan without private credit there are a variety of special forms. These different forms arise simply from the fact that a loan without private credit in Germany is not a normal loan. We will go into many ways later on how to get a loan without private credit. One of the special forms of a lightning loan without private credit we would like to introduce in advance but especially because this is always mentioned in context. We are talking about credit, but what is it?
As you might have guessed by the name, this is a loan from a bank, which is also referred to as a foreign currency loan. This is due to the fact that Switzerland is not a member of the euro. Citizens from Germany can also take advantage of this loan, provided the conditions are met. Probably the most important message in the loan is certainly the, there is no query of private credit., But you have to prove an income in sufficient amount.
And because of this income, the loan is ultimately awarded. One thing to keep in mind, however, is that the loan offer is only directed to a specific group of people, namely employees with a permanent employment relationship. In most cases, the employment relationship for obtaining a loan must already exist for a few months and may not be limited in time. Self-employed people can not apply for a loan.
In addition, the loan amount is limited to a maximum of 5000.00 euros. But you do not have to use the full loan amount. The mediation of a loan does not take place via a German bank, but usually via a credit intermediary.
What are possible pitfalls?
- Too high interest rates
Of course, with a loan without private credit lurking pitfalls. These pitfalls can be for example: a high interest rate. Of course, a high interest rate is not good, either because it significantly increases the monthly rate or takes longer to repay the loan.
- Hidden costs
Another pitfall is the processing fees and insurance. Often, for the processing and protection of the risk, corresponding processing fees and insurance, so-called default insurance charged. Since both are associated with high costs, one can only advise anyone to compare before concluding a lightning loan without private credit the individual offers. Not infrequently, there are huge differences in interest rates, processing fees and possible default insurance.
What can you do with bad private credit?
Anyone who is in the private credit because of unpaid bills or other debts has a hard time with a loan. This is simply due to the fact that private credit is an important indicator of creditworthiness for banks. Of course, if there are debts, this naturally feeds a bank’s doubts as to whether the borrower is also able to repay the loan.
- Prove collateral
Who is now affected by a bad private credit, which should not equal the shotgun throw in the grain. There are still ways to get a loan. Such a possibility is collateral, usually one understands hereunder a property or for example a guarantee. But you have to pay attention to two points, so that a property can be considered a security, it must be free of charge, so debt free and also belong to one.
- Insert guarantor
In addition, the property must have a correspondingly high market value, depending on the required loan amount. If you have no property or other valuable land, there is still the possibility of a guarantee. Here, a friend or family member takes over a guarantee for the loan.
Again, there are prerequisites, so the guarantor or the guarantor must have a corresponding credit rating or other collateral. In addition, one should be aware of one thing, one does not meet his payment obligations, takes the guarantee and is used for liability.
- personal loans
These were two options now, but there are others, a personal loan from the internet. In order to get a personal loan, one can fall back on the possibilities of the Internet, which offer themselves there. There you will find portals that bring together borrowers and lenders. For example, if you need a loan of 2000 or 5000 euros or more, you can submit a corresponding request to the portal.
You then have to describe what you need this money for, and give details of your income and generally the credit rating. Even if the credit rating is not as good or even bad, this is not a reason for exclusion for a loan. Rather, you have to convince the potential lenders with his speech, the only this then decides whether he wants to invest or not. Whether you find one or many lenders with small contributions, is usually very different.
If the desired loan amount comes together, you will receive it from the partner bank of the portal. Afterwards you pay back the loan in monthly installments, the bank takes over the distribution of the installments to the individual lenders. The monthly repayment amount results from the loan amount. Larger costs for processing and insurance are not incurred.
Interest rate developments in credit
Decisive for a loan are the interest rates, as these are sometimes a cost driver. Basically, the financial crisis in Europe has also had an impact on interest rates, and positively. This means the interest rates have dropped significantly, you will come to this result quickly, if you look at a loan comparison on the Internet. Although one should not make a mistake here, one must not transfer these interest rates on a lightning loan without private credit.
Compared to a normal loan with private credit, many banks and credit intermediaries rate a loan without private credit with a significantly higher risk of default, which of course makes itself felt in the interest rate. And so it is not surprising that the range of interest rates from 4.9 to 12 percent and there are banks that make the interest rate depending on the customer and its credit rating. On the described portals where you can get a loan from private individuals, an interest rate of up to 16 percent is possible.
Of course this is a decent cost driver depending on the loan amount and monthly repayment installment. Of course, the loan is certainly interesting for many people, but even here you have to expect an interest rate of around 12 percent if you want to take advantage of this offer.
All information must be understood daily, this means that the interest rates of the respective loan offers changes regularly. For this reason, one can only guess, always to catch up offers and compare. And do not forget the incidental costs mentioned above such as processing fees and insurance.