A loan is quickly applied for on the Internet. With just a few clicks of the mouse, many providers give you an initial assessment of whether your desired loan can be realized within a few minutes. You can actively influence the chance of getting a loan on favorable terms. Follow these seven tips for safe and sustainable funding.
Meet basic requirements
In order to be able to take out a loan from a reputable provider, you must meet these basic criteria:
- You are resident in the country,
- You are of legal age
- and have a regular income.
If you fail to meet one of these points, your loan application is doomed to fail. In addition to these general conditions, your creditworthiness and possible collateral also play a decisive role in lending.
Correctly determine credit requirements
One of the most important building blocks when applying for a loan is to determine your personal loan needs. How much money do you actually need for your plans? Be realistic! The following example shows how to correctly determine your needs.
Example: You are interested in a property. The purchase price is USD 100,000. Your savings account contains USD 25,000. At first glance you need USD 75,000 to finance the property, provided you bring in your equity. However, also consider brokerage fees, notary fees, and possible renovations. You will see that your current loan requirements quickly increase to USD 85,000 or more.
Plan conservatively. It does not make sense to add up the loan amount. With a financial buffer, you can bridge bottlenecks. If you plan too optimistically, you may need additional loan – these will be more expensive than the first one. With higher interest rates, you end up paying more than if you had calculated right from the start.
Calculate the installment amount and duration in a sustainable manner
Similar to the loan requirement, the term and the monthly charge must be well thought out. The longer the term of the loan, the lower the monthly payment in installments. But also: the longer the term, the more interest accrues.
You can control the monthly repayments over the term. Plan conservatively and take into account all eventualities for the future. Today you can probably pay a monthly payment of 500 dollars, but can you do it in 5 years? If in doubt, choose a longer term and lower rates. Also check whether special repayments are possible. In financially strong years, you can reduce your credit burden individually.
Choose the appropriate loan form
Once you have recognized that you can only make your purchase with a loan, you have to decide on the right type of financing. The choice is huge with instant loan, installment loan, personal loan or civil servant loan. You can find details at the bottom of the page or at the top of the page, under the menu item “loan”.
The most common form of loan is in the form of an installment loan. You can freely decide on the purpose. The loan is repaid in monthly, constant installments. A special form of installment loan is car loan. Here, too, a fixed amount is paid back to the bank each month, but the use is expressly intended only for the purchase of a car. There are various forms of loan and mortgage financing solutions available for the purchase of real estate.
Compare offers correctly
Never decide on the first offer without having obtained comparison offers. Even if the loan conditions seem so lucrative to you! The Internet enables a simple comparison, tailored to your personal situation. You can query terms and conditions in our credit comparison, for example.
Important: The decisive comparison criterion is the effective annual interest rate. The APR shows how high the total annual credit burden is. This already includes possible processing fees and debit interest.