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What are the things to considered to avail cell phone loan?

Occasionally, several payments are due at the same time and you have to struggle temporarily with a financial bottleneck. In such a case, the friends or relatives can usually help out. However, for some it is not feasible to ask relatives or friends for a certain amount of money. And an application to the house bank for a loan is unnecessary solely because of poor creditworthiness or a Credit Bureau entry. However, this does not mean that all options are exhausted. A borrower has a good chance of getting a loan even with poor creditworthiness and without Credit Bureau information

What points have to be considered regarding mobile phone credit?

As a borrower, first make sure that the monthly loan repayment rates are not too high. Remember that there are other things to pay for your income. Last but not least, good financing depends on low interest rates and good conditions. Many borrowers want a loan that is as adaptable as possible. The possibility of being able to stop paying the installments for a month is just as important as special repayments without additional costs. If financing contains all of these things, then it is definitely recommended for cell phone loans.

However, there are a few things you should consider so that there are no obstacles to your financing as a trainee, employee, unemployed, student, pensioner or self-employed:

1. Do not borrow more money than is actually needed

In principle, the guiding principle applies: The necessary funds must be dimensioned as precisely as possible when planning in relation to the topic of mobile phone credit. It is therefore an absolute must to prepare the issues beforehand so that you do not experience any unpleasant surprises afterwards. It would be wise to consider a small buffer – too large a cushion leads to unnecessarily high liabilities. Therefore do not take out a higher loan than is needed. It is better to supplement the under-calculated need with follow-up or top-up financing.

2. Establish and structure a financing plan

Having precise control over income and expenses and correctly assessing your financial situation are essential prerequisites for a required loan. Of course, this premise applies particularly to the subject of mobile phone loans. Here helps z. B. A detailed weekly list of all expenses: So in the evening you use receipts and receipts to note how much money has been spent on that day. Small amounts of money, such as morning coffee at the bakery or beer after work in the pub, should also be taken into account in order to uncover hidden expenses. So you can not only judge where you can save something; the cost table is also an aid in assessing the optimal repayment rate.

3. Be careful and conscientious

It is important to be correct, honest and careful with all information about your own financial situation and creditworthiness – be correct, honest and accurate with all information about your financial situation and creditworthiness. You should take enough time to carefully compile all evidence and documents. This is the only way to draw a serious, exact picture of your own financial situation, which undoubtedly has a positive effect on the chances for an instant loan or an emergency loan.

What an experienced mediator can do for you

What an experienced mediator can do for you

In principle, the main activity of an intermediary is to support you in the search for a suitable “loan without Credit Bureau”. However, the activity does not extend to pure mediation. Sometimes it also includes comprehensive debt counseling. A really good broker will give you detailed advice on the financing offer by showing you the advantages and disadvantages. He will also support you in compiling all the required application documents.

Advantages and disadvantages in mediation

Advantages:

  • Good connections also to lesser known banks and credit institutions
  • Advisory service before submitting the application
  • Procurement of loans even if the creditworthiness is insufficient
  • Assistance in compiling the documents for the loan application
  • Aid for argumentation in the event of unfortunate personal circumstances or high financing amounts
  • Good options on cheap loan interest

Disadvantage:

  • Risk of obtaining overpriced loans
  • Possible costs of brokering credit
  • Doubtful offers are not always immediately recognizable
  • Risk of obtaining overpriced loans

A number of intermediaries have good connections to small and lesser-known banks, which offers the opportunity to obtain extremely effective conditions for cell phone loans. It is easily possible to negotiate difficult cases. In the case of small banks, the applicant’s creditworthiness is still largely checked manually, so that the intermediary can credibly justify a negative entry in the Credit Bureau, for example. In this way, such an entry in the credit check is not as important as in a large bank, where such a procedure is almost exclusively computer-controlled. Such an application for a cell phone loan would have absolutely no chance at an established bank.

This is how serious creditors differ from dubious credit intermediaries

When it comes to cell phone credit, a reputable broker will always act in your interest. In principle, because the agent receives his commission from the bank, you do not incur any expenses or other payments.

You can recognize a reputable credit broker by the following criteria:

  • There are no costs for arranging a loan
  • The company has a website with contact options, imprint and address
  • With a test call the company can actually be reached and {the employee awakening conversation partner} makes a serious impression
  • You will receive specific information on terms, loan amount, debit and effective interest

The characteristics of a dubious mediator

  • Credit applications are sent cash on delivery
  • Offers in the form of a financial restructuring
  • Unregistered home visit
  • Demanding a fee for the consultation and regardless of the conclusion of the loan contract
  • You are promised 100 percent loan approval
  • Financing depends on taking out residual debt insurance or other insurance
  • Calculation of expenses or additional costs
  • The broker only takes action if you sign a brokerage contract

Foreign credit institutions – a good alternative for mobile phone loans

Whether you need the start-up capital for your new existence, need a new car or you are planning a long vacation trip – loans from foreign banks are being used more and more to finance you. Many foreign institutes now offer cheap loans on the Internet, which are individually tailored to the needs of customers. The decisive plus is that the guidelines for granting a loan at foreign financial institutions are not as strict as ours in Germany.

Therefore, an unfavorable credit rating or a negative entry in the Credit Bureau only play a minor role when it comes to cell phone loans. Loans are brokered online, which are funded by Infra banks. This fact is particularly interesting for those consumers who need a financial injection particularly quickly and have already been rejected by Cream bank. These include, for example, students, the self-employed, pensioners, trainees, the unemployed or employees during the trial period. It is these people in particular who find it extremely difficult to get a loan with regard to mobile phone loans.

Which is why a Swiss loan is a good alternative

Which is why a Swiss loan is a good alternative

When it comes to granting a loan, it is often difficult for private individuals with money problems. With debt or poor creditworthiness, the chance of financing is considerably reduced. In such cases, a so-called “Swiss loan” can be a real option. It means a loan from a Cream bank. In principle, such institutes do not conduct Credit Bureau queries, which logically makes it extremely easier to find loans. With regard to the topic of mobile phone credit, this fact can be considered almost ideal.

Of course, you also need certain collateral and proof of income for a loan from Swiss financial institutions, although a credit check is also mandatory before the loan is granted. However, if you have a fundamentally secure credit rating and the Credit Bureau entry is your only concern when it comes to financing, the Swiss loan represents a realistic chance for a cell phone loan.

This is how cell phone credit is guaranteed to work

When you search for a cell phone loan on the web, you may mean a “loan despite Credit Bureau”, that is, “despite a moderate credit rating”. If information about the applicant’s creditworthiness is not obtained from Credit Bureau, then well-known financial service providers will certainly turn to other credit agencies.

There is actually no one who lives in Germany and has no entry or score at Credit Bureau. Because if you set up a bank account in the Federal Republic or even applied for a credit card, such a credit score will be created for you. There is therefore no “credit without Credit Bureau” at {any bank}. What is there, however, is a “loan despite Credit Bureau entry”. Fortunately, the majority of consumer scoring at Credit Bureau is positive. Still, a lot of people believe that they have a “negative Credit Bureau entry”

Before you submit a loan application to the bank, you should first find out how it is with your credit rating or whether it is in fact so poor that your application may be rejected. It is also possible to query the Credit Bureau score free of charge once a year. In order to be able to find out for yourself what personal information is stored, you have been able to obtain a so-called self-assessment from the credit reporting agency since 2010. According to Section 34 of the Federal Data Protection Act (BDSG), you are normally entitled to this information free of charge, once a year.

You can request your own scoring (Credit Bureau score) and information on whether any institute has obtained information about you in the past few months from “MeineCredit Bureau”. The scoring is linked to various “ratings”. These are somewhere between 1 and 100. The higher the value, the better the credit rating. 100 is the maximum score anyone can get. In this case, an extremely low probability of failure is assumed. A value of 50, on the other hand, means in plain text that Credit Bureau assumes that payment defaults are far more likely.

Tip: This is how you can have a negative Credit Bureau entry deleted

Tip: This is how you can have a negative Credit Bureau entry deleted

An invoice is due and you overlook the fact that you have to pay it on time. Be it because of a move with a new mailing address, through no-fault, short-term financial bottlenecks or through a longer vacation. Sooner or later there may be difficulties with an unpaid mobile phone bill. It happened quickly. You suddenly have a negative Credit Bureau entry and can only apply for a loan with Credit Bureau. A reduction in the score by several reminders means that it can have an impact on the application for a loan.

On the other hand, every consumer can have a negative Credit Bureau entry deleted for their protection. The credit agency stores large amounts of data. It can therefore happen that the information provided is very often out of date or incorrect. In any case, as a consumer, you should exercise your right to request self-disclosure and, if necessary, have existing entries that are no longer up to date eliminated. It is sufficient if a deletion is ordered from the credit agency. On the other hand, the condition is that the open invoice must be paid within 6 weeks and must not exceed USD 2,000.

Your data at Credit Bureau – deletion of Credit Bureau data

Even without your intervention, the data at Credit Bureau will be automatically removed after a certain period of time. This happens for example with:

  • after exactly one year for information about inquiries; This information will only be passed on to Credit Bureau contract partners for 10 days
  • for loans 3 years after the year of the complete repayment (to the day) of the loan
  • for information about outstanding claims, each after a period of 3 full calendar years (ie with the expiry of December 31 of the third calendar year, which follows the entry)
  • for online or mail order purchases, in the event that the claims have now been settled

Swiss credit – the advantages

Individuals who need a loan because they are in a precarious financial situation often find it difficult. Financing is made significantly more difficult due to poor creditworthiness and debts. In such cases, a so-called “Swiss loan” can be a sensible alternative. It means a loan from a Cream bank. Credit Bureau queries are generally not carried out by such banks, which makes it much easier to get the loan. This is especially ideal when it comes to mobile phone loans.

Of course, you also need certain collateral and proof of income from a Infra bank for a loan, whereby a credit check also takes place before the loan is granted. With a guaranteed credit rating, the Swiss loan is a real alternative for mobile phone credit, even if you have a negative entry in the Credit Bureau.

What is the “APR”

What is the "APR"

The “effective annual interest rate” or “effective annual interest rate” is also of crucial importance for mobile phone loans. What is the “annual percentage rate”? This means the interest costs for loans per year, which are calculated using the nominal loan amount. It is specified with an agreed percentage of the payment amount. In addition to fixed interest rates, there are also variable or flexible interest rates or other price-determining factors for loans. This interest rate is a so-called initial “annual percentage rate”

Sometimes a fixed borrowing rate is set for a loan for the entire duration of the term. In plain language, this means that even if there are fluctuations in interest rates on the capital markets, the nominal interest rate on which the “loan” is based remains unaffected. A fixed borrowing rate provides you as a credit customer with the necessary planning security. You can be sure that the interest rate on the “loan amount” will remain the same throughout the term of the loan.

What does the loan term mean

The loan term of a loan has a significant impact on the loan terms that the bank grants to the borrower. In other words, the borrower has to pay smaller monthly installments if the “loan term” is longer than if he chooses a loan with a short term. The corresponding decision regarding different options regarding the loan term can therefore be quite advantageous. Nevertheless, not all maturities are offered for all loans.

The time from the payment to the full repayment or repayment of the loan amount is referred to as either the loan term or the loan term. The duration depends on the amount of the nominal interest and the repayment. The term is clearly primarily influenced by the repayment rate. The lower the repayment amount, the longer it will take for the loan and thus the loan amount including processing fees and interest to be paid off in full. There are also special loans with very long terms (at least 5 years). These are called long-term loans.

What are the loan fees

Loan fees are often referred to as loan processing fees, processing commission, closing fee or processing fees. These fees are mostly the costs that the credit institution was allowed to bill until 2014 for the effort required to process an application for a loan or a credit request. The calculation of the “loan fees” for processing a loan request, including the assessment of the borrower’s creditworthiness, was declared illegal in May 2014.

As a result, banks and other financial service providers may no longer demand costs that are dependent on the loan amount requested. Until now, such processing fees have normally been around 1 – 3 {{percent}} of the loan amount, for example, for a loan of USD 10,000, this was already USD 150 to 450. Processing fees that have already been paid by borrowers for the loan application or the credit request can therefore be reclaimed in many cases.

What is a lender

The lender is understood to mean a private person or a company that lends money to the borrower or borrower for a certain time at an appropriate rate of return. In principle, the “lender” is spoken of in the legal texts. In this context, one often hears the terms “lender” or “creditor”.

A loan always poses a major repayment risk for the lender. For this reason, the interest is usually higher than for a normal loan. Lenders are typically financial institutions such as insurance companies, building societies or credit banks. The Civil Code (BGB) is decisive for the rights and obligations of the borrower.

What is the monthly rate

“Loans with poor creditworthiness” are in principle a little more expensive, but must also be repaid by means of individual monthly installments. In the case of loans, the monthly installment contains an essential element – the interest rate. The bank calculates the interest rate based on the prices currently charged for interest on the capital market. Usually, she later passes this interest on to her customers with a reasonable premium.

The “monthly installment” for loan repayment is another component. The borrower usually determines the repayment rate based on his income. Repayment is generally one percent for {longer-term loan contracts} per year. If the borrower intends to repay the loan amount and thus the loan amount in a shorter period of time, he must agree a higher repayment with the bank. It is then to be expected, according to the repayment amount, an increased monthly charge.

Repayment and interest rate are thus the central factors that determine the monthly rate for loans. Integrated in the monthly rate, however, are the brokerage commissions and the processing fees of the banks. These costs are included in the total loan amount as part of the monthly installment, although they have already been taken into account in the interest as standard.

What is a debt rescheduling loan

What is a debt rescheduling loan

A debt rescheduling loan is a loan that someone takes out in order to be able to repay an existing loan with a high interest rate somewhat more cheaply. With such a debt rescheduling, the borrower can save money. Debt restructuring also offers the benefit of being able to combine different loans into one. You can therefore disclose more than one loan for a debt rescheduling. Logically, for a “debt rescheduling loan” you do not go to the {credit institution} where you took out the first loan, but to another. In exceptional cases, you can take out the loan for a debt rescheduling from the same bank again, in the event that you are offered a lower interest rate this time.

The real purpose of a debt rescheduling loan is certainly to have a smaller financial outlay after you take out the new loan. Even if the interest is only minimally cheaper, it can mean that you will save a lot of money in the end.

What is the total loan amount

What is the total loan amount? It usually includes all costs that a bank customer has to repay in connection with the loan received. Therefore, this is not just the pure loan amount, but the total amount including the additional costs that the borrower pays back to the financial institution during the repayment within the agreed loan term. The requested loan amount is increased by any commission or processing fees as well as the interest due. The “total loan amount” therefore includes all fees and expenses incurred, which may make it significantly more expensive than the actual nominal amount of the loan.

{The cost} for residual debt insurance that may be taken out to hedge the loan amount is also part of the total loan amount.

What is the loan amount

What is the loan amount

If the borrower is approved, the loan amount is then paid out net. The payout may be lower because the “loan amount” is not paid in full as a total. This also applies to a “Swiss loan” or a loan.

In the course of checking a loan application for a loan amount, either the applicant’s existing total income or, for a commercial loan amount, the business documents are checked. How high the loan amount is then of secondary importance. The monthly income of the borrower is checked for a loan amount of USD 500.00 as well as for a loan amount of USD 10,000.00.

The monthly installment for repayment within a set time is generally fixed for the loan amount. As far as these agreements are concerned, they are always firmly anchored in the loan agreement. If the borrower has the corresponding income, he can also repay the loan amount more quickly through special repayments. Whether these special repayments are subject to fees or are offered free of charge must be determined from the respective financing offer. If the last installment for the loan amount has been repaid, the contractual relationship automatically expires. When applying for a loan again, the borrower must in turn submit one in writing to the bank.

What are the credit rating criteria

Without a credit check, there is no loan. The result of the credit check depends in particular on the “credit rating criteria” and is in principle the credit rating that determines the corresponding premiums on the loan. If the credit rating is positive, relatively low interest rates are required. If the credit check gives a good result, there are decisive advantages in any case. There are quite a few differences between the various financial service providers in the normal credit rating criteria. However, the credit rating criteria mentioned here are the same for every bank and are valid for every applicant.

  • What is the monthly earnings?
  • What is the employment relationship like?
  • Is the borrower a manager, officer, or contract agent?
  • Who’s the employer?
  • Where is the borrower’s place of residence?
  • Are there entries at Credit Bureau or other credit bureaus?
  • Does the borrower keep a household ledger with an entry-expense report?
  • Are there assets in the form of buildings or land?
  • What is the marital status?
  • Are there any existing loans and guarantees?

These are the prerequisites for cell phone credit

In order to positively influence the decision of the loan broker for your loan, you have to fulfill certain preconditions. Which includes:

  • Age of majority upon application
  • German address
  • Account with a domestic financial institution
  • current monthly income
  • sufficient creditworthiness
  • for earmarked financing, collateral such as real estate or a car

A so-called personal loan or credit private, which various credit intermediaries have in the program, can usually also be obtained with an unfavorable credit rating. In this case, “borrowing money without Credit Bureau” does not go through a normal financial institution, but through one or more donors.

“Mobile phone loan” – worthwhile tips

"Mobile phone loan" - worthwhile tips

In the event that you want to apply for a loan with a poor Credit Bureau score or unfavorable Credit Bureau, then first consider whether you are able to repay the loan without any major difficulties. Usually it is not without reason that the loan application is rejected by the financial institution.

Remember: One of the business principles of credit banks is to ensure that as many consumers as possible take out a loan and repay it on time, in full and with interest. It is therefore not the case that financial institutions are not interested in granting the loans. If payment behavior was previously very inadequate, it can be expected that there will be no timely repayment in the future. As a result, the application is then logically rejected. But even with a sufficient Credit Bureau, the loan application can be rejected. Namely, when the necessary funds are insufficient or the minimum income is so low that the repayment of the financing is not guaranteed.

It is therefore necessary to compare the total income with the monthly expenses before applying. Only then should you decide whether to apply for a “loan without Credit Bureau”. You will then already know in advance whether you can easily repay the desired loan or whether the installments due might go beyond your household budget. Please keep in mind that there can always be something surprising in financial terms, which makes it difficult or even impossible for you to pay back the loan amount conscientiously. This could be, for example, the defective car, a broken refrigerator or a high payment request from the electricity or gas provider.

If you are smart, you can take advantage of competent advice from your personal credit advisor for a “Credit Bureau entry loan”. If necessary, he will analyze your financial options together with you and will also help you to find the right offer. People who did not seek advice before taking a carefree “loan despite Credit Bureau” have often been caught in a debt trap – with unpredictable economic consequences. On top of that, the loan broker can provide competent advice on the merger of various loans, ie, “debt restructuring despite Credit Bureau”.

You will only receive a “loan with Credit Bureau” or a “loan with Credit Bureau entry” from the bank if you have a sufficient Credit Bureau score. Take the opportunity to get the Credit Bureau Score free of charge once a year.