Credit is not just credit, but it comes down to preferred properties that are important for the borrower. Depending on the properties, a loan comparison can be carried out more quickly and in a more targeted manner. Below you will find an overview of the criteria according to which loans are selected.
The cash credit, also known as an instant or express credit, is paid out quickly and without extensive application and verification in cash or, far more frequently, by means of a wire transfer. The term cash loan stands for both an overdraft facility granted in the checking account and an installment loan with a manageable loan amount. Such loans are usually more expensive because the shortened check increases the bank risk.
A cheap loan is usually an installment loan with very favorable interest rates. The borrowing rate is significantly below the average level. It is often an advertising interest. Fast application and payment is often guaranteed. Such low-priced loans are often offered as part of special promotions or can be requested through specialized credit comparison portals.
Loan with non-credit interest
All customers receive the same interest rate for the loan regardless of their individual credit rating. However, the creditworthiness of the credit-independent loan is still checked. If the creditworthiness is inadequate and the entries are negative, German banks will reject them. Since the bank has to absorb a greater default risk here, the loan interest is higher than for loans with interest rates dependent on creditworthiness.
Credit without a bank
Borrowing money without a bank is possible through a loan that is given by private individuals to private individuals. The term also includes credit offers from financial service providers, credit brokers or online credit marketplaces for personal loans, but they are processed by a partner bank. The conditions are not tied to the strict lending guidelines of banks, which also enables loans for customer groups that do not fully meet banking requirements.
Loan with no processing fee
The processing fee is used to invoice the credit check effort. This can be between 1 and 3.5% of the loan amount and is added to the interest, which makes the loan more expensive. The Federal Court of Justice declared processing fees for a consumer loan in 2014 to be inadmissible. A credit offer should therefore no longer contain this item.
Credit without RSV
A residual debt insurance (RSV) is to hedge the credit default risk, i.e. the monthly payment in installments. There are different risk models here, such as unemployment or death of the borrower, which can also be combined. The premium amount is usually added to the loan amount, which ultimately makes the loan considerably more expensive. The RSV is usually superfluous, especially for small loans, here a loan without residual debt insurance is recommended.
The creditworthiness of the borrower is excluded in the case of a loan without Credit Bureau. Some providers request information that is not taken into account, others refrain from doing so. The approved loan is not entered in the Credit Bureau. This type of loan is known as a Swiss loan if the lending banks are based in Switzerland. Offers are found predominantly from credit agencies.
Loan with guarantor
If the borrower cannot meet the requirements for a loan, such as regular income and creditworthiness, or can only do so inadequately, solvent guarantors are a way to still get the loan. However, it is up to the bank to decide whether to accept guarantors.
Fixed rate loan
The term fixed-rate loan has two meanings in finance. On the one hand, he means the fixed interest rate on installment loans, which remains unchanged over the entire term and thus differs from the variable interest rate. On the other hand, this also means an interest rate that is independent of creditworthiness and is the same for all borrowers.
Long term loan
The longer the term, the lower the monthly repayment rate. The bottom line is that the effective interest rate and thus the total loan amount increase with long terms. A long-term loan is particularly in demand for large loan amounts. Maximum loan terms for consumer loans range from 84 to 120 months.
Credit with online approval
Loans that can be applied for quickly and easily on the Internet often offer a preliminary online approval. Based on the available data and an initial check, a forecast of the lending is made within a very short time. In the case of online credit with immediate approval, a definite commitment is only made after all relevant credit documents have been submitted and an extensive credit check has been carried out.
Credit with residual debt insurance
For medium to high loan amounts or if the borrower has to expect changes in income and health, a residual debt insurance (RSV) can be useful. The residual debt insurance can be taken out in different variants, depending on the specific risk such as incapacity to work, unemployment, illness, death or as a combined model.
Bad credit credit
German banks generally do not grant loans to people with poor credit ratings. It is important to find other solutions for urgent credit needs. Providers for Swiss credit, credit without Credit Bureau or despite Credit Bureau are possible, and online marketplaces for credit from private to private are also an option.
Fast Payout Loan
Sometimes it has to go faster and you can’t wait long. In the case of online loans, the quick alternative is the instant loan with payment within a few hours, and if you can believe the advertising statements of different providers, also in a few minutes. The prerequisite is that all data and documents for the application are complete.
Credit with a break in payment
The loan repayment usually begins immediately after the loan payment. Some banks grant a payment break of one month or more as a special condition. However, it should be considered whether this extra is associated with costs and whether it still pays off to take the loan with a break in payment.
The Swiss loan is granted by banks from Switzerland and is independent of the creditworthiness of the borrower. Such a loan, also known as a loan without Credit Bureau, is available through credit agencies, including online. The interest conditions for Credit Bureauneutral loans are higher in order to absorb the credit default risk of the banks. In addition, attention is paid to a sufficiently high income corresponding to the loan amount.
The insurance loan or policy loan is a financing variant of the real estate loan. During the term, the borrower pays the interest in monthly installments and at the same time pays contributions into a life insurance policy that serves as security. At the end of the term, the loan is fully repaid with the saved amount from life insurance.