How to cancel a revolving credit

How to cancel a revolving credit?

How to cancel a revolving credit?

A borrower can completely cancel his revolving credit… as long as he meets certain conditions. The law provides for several scenarios – particularly in the event of financial difficulties – for which the early repayment of a revolving loan is facilitated. Here’s how to request the cancellation of a revolving credit. http://refoksa.com for more.

When does one end up repaying a revolving credit?

When does one end up repaying a revolving credit?

When a borrower subscribes to a conventional consumer credit, an end date is provided for under the terms of the loan. This allows him to know when he has finished repaying the amount borrowed initially. In the context of revolving credit, the situation is radically different. It is not anticipated that the contract will end when the last repayment of the amount used has been paid. In a revolving loan, each payment from the borrower only replenishes the amount available for future financing. The loan still exists and it is not possible to terminate it by repaying it.

Only an express request from the borrower can cancel a revolving credit, or if it fails in its repayments, a request from the lender.

Refuse to renew a revolving credit

Refuse to renew a revolving credit

This is the first case to terminate a revolving credit easily. If in practice, a revolving credit works as if it had no end date, legally, the contract is for a period of one year. On each anniversary, it is tacitly renewed, but the borrower can take the opportunity to end the credit. For this, he must serve the lender his refusal to renew the loan.

Each year – three months before the anniversary date of the contract – the financial institution at the origin of the credit must send the borrower a letter reminding the conditions of renewal or renewal of the loan. The customer then has the opportunity to cancel the revolving credit, refusing to renew or renew it. For this, it is sufficient for him to use the slip-answer attached to the lender’s letter.

Request to terminate the revolving credit

Request to terminate the revolving credit

Throughout the life of the loan, the borrower can ask to cancel it. This possibility was opened by the Châtel law of January 28, 2005, and the borrower does not have to invoke any particular reason. Of course, it remains committed by the sums in use, and therefore has the obligation to repay them in full. If the amounts are too large for a one-time repayment, the borrower may request a staggering of payments to avoid a financial hardship.

Note: the credit institution is not obliged to accept a repayment of the debt. Moreover, when the lender proposes it, this facility usually has a cost, which should be studied closely.

Another case allows you to cancel your revolving credit. This is the right of withdrawal. Since 2011, the deadline is 14 days during which the borrower can cancel his acceptance of the loan offer. This is done by simply sending a registered letter with acknowledgment of receipt.

Suspend credit for lack of use

Suspend credit for lack of use

The revolving credit agreement may be suspended if it has not been used in the last year. This possibility is open for the credit itself and for the usually associated credit card. This suspension occurs when the lender provides the credit renewal information for the anniversary date of the contract. If he wishes to keep the revolving credit that he has not used for a year, the borrower must sign and return the renewal document no later than 20 days before the deadline. Otherwise, the revolving credit is suspended. Once the suspension is confirmed, the borrower retains the option to reactivate his credit for one year. If he does not lift the suspension within this period, the revolving credit is terminated automatically.

In practice, this means that a borrower who does not use his revolving credit for a year will see his contract suspended initially and then permanently canceled a year later. Without having to intervene with the lending institution.

Cancel a revolving credit in case of financial difficulties

Cancel a revolving credit in case of financial difficulties

The repayment of a revolving credit can be spread over several years. During all this time, the borrower’s financial situation will change and repayment difficulties may arise. It is then possible that one or more non-payments of the monthly payments stipulated in the contract occur. In this case, the lending institution can then cancel the revolving credit. It must begin with a formal notice to proceed with the refund. In the absence of regularization, the lender has the right to terminate the credit agreement. Depending on the terms of the contract, he may apply a late payment, demand immediate repayment of the sums borrowed and payment of unpaid interest.

Credit Loan – Overdraft Interest Rates Continue to Fall

For bank customers, it is annoying if the account slips into the downside. Finally, then incurred costs for the credit line. But the good news for consumers is: Overdrafts are cheaper. But the old problem remains: financial institutions do not pass on falling interest rates to customers to the same extent as rising interest rates.

Banks reduce disbursement interest

Banks reduce disbursement interest

In the past, banks have adjusted their own discretionary rates little or not at all to the otherwise low interest rates. This has changed at least partially at the beginning of this year. While banks at the beginning of 2016 charged their customers an average of 10.60 percent, the average interest rate in the middle of the year was 9.48 percent. The “customer-friendly” financial institutions include, for example, the Alibank, which has lowered the interest rate from 7.50 to 6.90 percent. The same applies to the Bankate, which currently requires only 7.49 percent for the overdraft. Obviously, the market is putting banks under pressure. At the beginning of July, numerous small and regional banks and savings banks began to adjust interest rates.

Unclear regulations for interest rate changes

Unclear regulations for interest rate changes

Consumer advocates criticize that numerous banks and savings banks disadvantage their customers in the calculation of costs, if the current account is overdrawn. Also, many financial institutions do not explain transparently when and under which conditions the interest rate will be adjusted. This explains Carmen Friedrich, head of the responsible team of the “market guardian of finances” in the consumer center Saxony. This is a nationwide network maintained by Consumer Centers. Already in November, Friedrich and her team had presented a study on advertising for more than 1,300 checking accounts at 371 savings banks and banks. Here, the consumer advocates have established reliable and clear rules on the interest rate for the credit line only at a total of 32 financial institutions. However, well-bundled and easy-to-find information, especially in view of the numerous offers on the Internet all the more important.

Banks violate their own interest rules

But also in the 32 financial institutions with transparent regulations is not always acted in the interests of the customers in the opinion of the consumer advocates. Carmen Friedrich says: “Eight of the banks violate their own interest adjustment rules, by not applying them.” Instead, the financial institutions would sit idly the topic of interest rate adjustment. Overall, however, the overdrawing of the account has become more favorable in recent years given the general low interest rates. As the financial advisor FMH has determined from Frankfurt, is required by German banks on average currently an interest rate of 9.48 percent for the overdraft. By contrast, about five years ago the average was still 11.39 percent.

Tip : the amount of a bank’s dispo can be found in the price list in the entrance area of ​​the branch as well as on the website of the respective bank.

Falling interest rates do not arrive at the consumer

Falling interest rates do not arrive at the consumer

Consumer advocates have been criticizing for years that financial institutions do not pass on falling interest rates to customers to the same extent as rising interest rates. Carmen Friedrich says: “Credit institutions do not adjust the borrowing rate for months or even years. The overdraft interest rate is thus decoupled from the market development, creating a parallel world of interest rates. “And further:” We write to and call attention to the credit institutions concerned. Under certain circumstances, further legal action will follow, depending on how the bank positions itself in the future. “

Stronger controls announced

Because the banks are only reacting with delay to the interest rate policy of the European Central Bank, Elisabeth Roegele – executive director at the Federal Financial Supervisory Authority – announced in May that she wanted to increase the control of financial institutions with regard to their interest rate policy. The reason: many borrowers complained to the regulator about loan overdraft rates being still too high, according to a report from Wirtschaftswoche. Initially, direct banks, state promotional banks and automobile banks were scrutinized.

Arbitrarines instead of transparency

Arbitrarines instead of transparency

In the online offer of four of the 32 banks, however, customers are searching in vain for information about the adjustment rules, as most of the banks surveyed in 2015 do not disclose all information relevant to the consumer. For some banks even arbitrariness in the design of the interest rate can be seen. A financial institution was therefore even warned because it raises or lowers the interest rate “at its discretion,” which represents a violation of the transparency requirement under Article 307 BGB for the consumer advocates. For this reason, they are once again calling for uniform statutory provisions in order to make the conditions of the banks more transparent for the system. They demand that a monthly adjustment of interest rates according to binding rules for all banks is required by law.

Bankenbrand defends interest rate policy

Bankenverband defends interest rate policy

The umbrella organization of the banking associations, the Alibank, explains: “Banks and savings banks must at all times keep ready the amount of money that the customer may use as part of their disposition credit. And this service costs. In addition, this loan is finally intended only for a short-term and flexible use.

This is how consumers can fight back

This is how consumers can fight back

Negotiating with the bank over the interest rate is futile. Because the interest for the Dispo are the same for all customers. If the costs are too high, however, there are several ways to escape the interest trap. In some cases it is worth changing the bank details or using alternatives. Those who are already deep in the chalk at their bank should replace their old loan prematurely on more favorable terms.

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What is a dispo?

What is a dispo?

The credit line is a way for individuals to overdraw the account. As a result, the account holder has the opportunity to make disposals of the current account even if no corresponding credit is available.

This is possible if a checking account is kept as a current account in accordance with Section 355 of the Commercial Code. Simply put, the account balance can be in both the plus and the minus ( see also current account credit ).

Regulated are the possibilities for overdraft in Section 504 of the Civil Code. Among other things, it stipulates that the account holder may not be charged any further costs apart from the regular interest. Also, the account may only be charged once per quarter with the interest payment. In addition, the credit institution must inform the account holder of the credit limit, the current annual interest rate and the conditions under which the interest rate can be changed.

How long does a transfer take?

Who makes a transfer, would like to rule that the money arrives as soon as possible. But despite modern technology, the credit is not immediate. How long it takes to reach the destination account depends on how the money transfer is made and where the recipient is located. For a few years, there is a law that sets the deadlines exactly. We have summarized the facts for you, see the following overview:

How long may a transfer take by law?

How long may a transfer take by law?

The approximation of German law to the EU Payment Services Directive also changed the execution deadlines for transfers in the BGB. The duration specified in the law is the maximum period allowed. It is therefore possible that the money will be received in advance – possibly on the same day – in the recipient’s account. In practice, this is done with transfers under the same banking institutions, such as from one bank to another. According to § 675s Abs.1 the following regulations now apply:

When does the time limit for a transfer begin?

According to § 675 n (1) BGB (receipt of payment orders), the period for execution begins when the transfer is received by the bank or savings bank. If the payment order is received on a Sunday or public holiday, the following business day is considered the date of receipt. For credit institutions, only the days are Monday to Friday working days. The bank executing the payment order may consider transfers received shortly before the end of the bank working day as received the following day. For most credit institutions, this is a time after 17 clock, so-called cut-off / cut-off time. Anyone wishing to know the deadline for their bank can read this in the terms and conditions or the special conditions for payment transactions.

How long does an online transfer take?

How long does an online transfer take?

With an online transfer is meant a money transfer, which the client carries out over the Internet. For this example, the web interface of the bank via a PC or smartphone can be used via app. A payment made at the Bank’s self-service terminal is also considered as an electronic transfer. The allowed deadline is 1 (banking) day, which is explained by the following practical example:

Example 1 : Mr. Meier fills in his transfer order on the PC on Tuesday afternoon. Since his order is received by his bank before 17.00, the amount has to be credited to the recipient on Wednesday.

Example 2 : Ms. Schneider commissions an online transfer on Friday evening at 7.30 pm. The money must be received by law on Tuesday at the receiver. The deadline for the execution begins on Monday, as Ms. Schneider has transferred only after 17.00 clock.

Duration of a paper transfer

Duration of a paper transfer

The paper-based transfer means a money transfer by means of a conventional bank transfer form, as it used to be widespread. The execution period lasts one day longer than with the online transfer.

Example 1 : Mr Berger submits a completed transfer form to his bank on Tuesday at 3.10 pm. Since the order is made before the deadline, and there is no weekend in between, the recipient may expect the payment to be due on Thursday.

Example 2 : Mrs. Heck submits a completed transfer form to her savings bank at 5.45 pm on Thursday. As the acceptance deadline was already 5 pm, the transfer will not be processed until Friday. Since work is not done on Saturday and Sunday in the bank, the amount of money must be received on Tuesday the following week in the account of the recipient.

How long does a SEPA transfer take?

How long does a SEPA transfer take?

A SEPA credit transfer is a money transfer that is executed using the SEPA format. This means that the recipient account must be identifiable via an IBAN or BIC. These include all normal domestic transfers as well as transfers to EU countries that are part of the SEPA area and executed in euros. The deadlines are the same as those for domestic transfers. Electronically at the bank’s bank transfer terminal or payment orders sent online must be registered with the beneficiary’s bank within 24 hours of receipt. If you have filled out your SEPA credit transfer with the bank as a receipt, the processing time will take up to 48 hours, see examples above.

Duration of a transfer within the EEA that is not in euros

Duration of a transfer within the EEA that is not in euros

For a transfer that takes place within the European Economic Area, but in a currency other than Euro, the deadlines for foreign transfers apply. Such a transfer may take up to 4 days in total.

Example : Mrs. Meier wants to transfer money to England. However, this should not happen in euros, but in British pounds. The allowed duration is up to 4 days. The rules for SEPA are no longer applicable, as the EURO currency would be required.

What applies to transfers of funds to non-EEA countries?

What applies to transfers of funds to non-EEA countries?

First and foremost, this refers to a transfer to countries on other continents, such as the USA, India or Australia. But also Switzerland does not belong to the EEA. There are no legal deadlines for transfers of funds to non-EEA countries. When the money arrives at the recipient depends on which foreign bank the beneficiary keeps his checking account and what the circumstances are in each country.

A Loan Taken Out in a Loan Company is Also a Consumer Loan

Loans are usually associated with banks. According to the Banking Law, only banks can grant loans. Credit unions can also do it for their members. The most-similar loan is a cash loan. I wrote about the differences between a loan and a loan from a legal point of view: What is the difference between a loan and a loan?

In addition to banks and credit unions, there are also many different companies on the financial market that specialize in granting loans. Some of them can even be seen on TV recently, heard on the radio, not to mention the internet advertisement.

Consumer credit has one face.

Consumer credit has one face.

Banks granting loans to consumers, i.e. natural persons not conducting business or professional activity, are obliged to comply with the requirements of the Consumer Credit Act. Consumer lending companies should also comply with the same requirements. This is because the loan taken by the consumer in such a company is also classified as a consumer loan. Consumer credit should be understood as an economic loan, i.e. a lender (entrepreneur) granting any financial assistance to a consumer, and not only in the form of a loan agreement regulated by the Banking Law. So, the consumer loan will also be a loan of no more than PLN 25,550 granted to the consumer by the loan company. More on what is consumer credit I wrote here: “Consumer credit, what it is and why it is worth knowing.”

Loan companies like banks have many responsibilities.

Loan companies like banks have many responsibilities.

For consumers, this is of great importance since loan companies lending to consumers are obliged, just like banks, to comply with the provisions of the Consumer Credit Act.

They must, therefore, include:

  • advertise a loan in a way that is clear and comprehensible to the consumer,
  • provide reliable loan data on special information forms before concluding a contract with the client,
  • provide before the conclusion of the contract pre- contractual assistance, i.e. provide explanations on the previously provided information and the provisions of the proposed agreement,
  • at the customer’s request, provide the draft contract for analysis free of charge before signing.

I wrote about these obligations here: “Consumer’s rights before entering into a consumer credit agreement.”

The loan agreement itself should be concluded in writing, be formulated in a clear and understandable way for the consumer and, what is extremely important, should contain many mandatory entries, including:

  • name, surname and address of the consumer and name, surname (name) and address (registered office) of the lender;
  • the duration of the contract;
  • the total amount of the loan;
  • deadlines and method of loan payment;
  • the interest rate on the loan and the terms of its change;
  • the actual annual interest rate and the total amount to be paid by the consumer determined on the day the consumer credit agreement is concluded, including all assumptions used to calculate it;
  • rules and dates of loan repayment,
  • information on other costs that the consumer is obliged to incur in connection with the consumer credit agreement, in particular fees, commissions, margins and costs of additional services, if known to the creditor, and the conditions under which these costs may change;
  • the annual interest rate on overdue debt, the terms of its change and any other fees related to arrears in repayment of the loan;
  • effects of non-payment;
  • the method of securing and insuring repayment of the loan, if the contract provides for it;
  • the date, manner and consequences of the consumer’s withdrawal from the contract,
  • the consumer’s right to repay the loan ahead of schedule;
  • information on the lender’s right to reserve in the contract the commission for repaying the loan before the deadline and the rules for determining the amount of the commission;
  • terms of termination of the contract
  • information on the possibility of using out-of-court dispute resolution and access rules to this procedure, if such a right is granted to the consumer;
  • indication of the competent supervision authority in matters of consumer protection.

After concluding an agreement with a loan company, the consumer has a number of rights. He may withdraw from the contract without giving a reason within 14 days of its conclusion. If the loan company breached the requirements of the Consumer Credit Act as to the form of the contract and mandatory provisions that should be included in the contract, the consumer may take advantage of the free credit sanction. In addition, the consumer is always entitled to early repayment without giving a reason. You will find more on this topic in this publication: “Consumer credit agreement and consumer rights based on it.”

Reality far from ideal.

Reality far from ideal.

Since loan companies lending to consumers are required to comply with the requirements of the Consumer Credit Act, whether they actually do so, has been checked by the Office of Competition and Consumer Protection. UOKiK analyzed the activity of 30 loan companies. As the audit report indicates, their practice is far from ideal in this respect and consumer rights are repeatedly violated. Irregularities were detected in all audited lenders. They consisted, among others, in:

  • unreliable information to clients about fees and fees that do not correspond to real activities performed by loan companies (fees were charged eg for receiving installments at home, preparation of a contract, extension of the loan repayment time, or so-called detective operations);
  • unreliable transfer of loan data on the information form prior to the conclusion of the contract (all companies audited violated the provisions on the obligation to provide the customer with information about the loan before it was provided on the information form) Some companies did not submit these forms at all, others did not provide information on all loan costs ;
  • providing false data on the actual annual interest rate (APRC). APY is an indicator that shows the relationship between the monetary amount that the customer receives from the loan / loan and the costs incurred by him on this account. When counting, all costs that the consumer is obliged to incur in connection with the contract, in particular interest, fees, commissions, taxes and margins, if known to the creditor and the costs of additional services, if they are necessary to obtain a loan, should be taken into account the costs of notarial fees borne by the consumer. I wrote more about it here: “Actual annual interest rate and consumer credit”. (8 audited companies did not take into account the cost of home loan servicing in the APRC calculations, eg the lender indicated that the APRC is 34.91%, and according to the findings of UOKiK, it was 310.65%);
  • inadequate determination of the cost of loans in relation to the activities undertaken by loan companies (12 companies collected fees for receiving loan installments at the customer’s home.) They were set as a percentage of the loan, thus not corresponding to the costs of actually taking actions. 500 zlotys for 57 weeks, the client would have to pay as much as 417.24 zlotys for servicing a loan at home);
  • collection of grossly excessive fees (eg for providing false data, the penalty was 4 times the loan, and for detective activities related to the determination of the address outside the town where the borrower had previously stayed – 1000 PLN)

The UOKiK audit also showed that in the case of two companies, the consumer signing the contract and paying the required high fees could not be sure that he would receive the money. The contracts required him to establish a large security after the conclusion of the contract. If he was unable to do so, the company retained all fees collected. UOKiK decided that the source of revenues of these companies is not granting loans, but retaining fees collected from customers.

In the case of all 30 loan companies audited, proceedings were initiated regarding infringement of collective consumer interests. In addition, UOKiK intends to submit 12 complaints to court to recognize the applicable contractual clauses as illegal.

Small loan in 24 hours

The most popular type of loan currently offered is microcredit. Not only is he quick to record but also quickly disappeared from the life of the borrower. No wonder, therefore, that it is not considered for long whether such a loan should be taken up.

More than 20,000 loans are issued each day in Germany alone. Most of these are small loans. These are divided between consumer loans and installment loans. While consumer credit is earmarked and can only be used for the purchase of very special items, the installment loan is free of constraints and obligations. It can be taken without the indication of a purpose and is therefore at your own disposal. A big advantage for those who want to balance their account or accumulate accumulated debts. After all, you do not like bragging about the bank when you’re about to make new debt in the form of a loan. This could ensure that the so much needed microcredit does not come about.

Many borrowers expect the loan to be available as quickly as possible. Not infrequently, a fixed project is associated with what is already planned and implemented swiftly. Since then can hardly find a room for big delays. If, for example, a small loan is searched for in 24 hours, then the credit must be taken in the right place in order not to endanger the speedy provision. In addition, as a borrower you should be aware that you have to do a lot of work yourself in order to enable fast processing and provision of the small loan in 24 hours. What all this is, we have gathered at this point once.

The best port of call for a microloan in 24 hours

In principle, there are two contact points, which can certainly provide a small loan in 24 hours. Unfortunately, this does not include the internet. Even if people like to advertise with a quick processing of loan applications, an application, processing, approval and payment within 24 hours via the Internet is hardly possible.

Because unlike an application on the spot, all documents must first be sent to the lending bank. Because every credit agreement requires an original signature of the borrower. A copy from the fax or scanner is not enough. On top of that, the identity of the borrower must be verified by a PostIdent. To do this, the borrower has to go to a post office with the relevant documents and an ID card, have the documents filled out and ask the post office for a quick dispatch. All this takes a lot of time and therefore prevents a small loan in 24 hours over the Internet.

But there are also two options for taking out a small loan in 24 hours, which always works if the creditworthiness of the borrower is correct. This would be on the one hand the consumer loan and on the other the installment loan, which is taken up directly at a local bank.

Consumer credit, which can be used to finance consumer goods, is offered by many retailers. It allows the financing of purchased items and offers a installment payment. So if you want to buy a new kitchen, you do not have to pay for it in cash, but you can pay for it in small monthly installments.

Since the consumer loan is requested directly from the dealer, he can also say within a few minutes whether he can be approved. The dealer asks for the private credit, inquires into the revenue and expenditure and checks whether these conditions for the recording enough. If everything goes well, you know within a few minutes whether the consumer credit is approved.

An installment loan with a local bank is just as uncomplicated. These are searched for with the required documents for the application, the loan request and the required loan amount and filled in together with an administrator of the loan application. He checks all information and the documents, asks private credit and will approve the loan with completeness and a good credit rating. Again, this takes only little time.

On request, the money can be paid out of the microcredit in 24 hours then even in cash. Depending on the form in which it must be available for the planned project. Such flexibility is not possible anywhere else.

Which conditions must be met?

Since no foreign loan is eligible for a microcredit loan in 24 hours, the loan must inevitably be taken up in Germany. This means that a good credit rating must be presented for the credit agreement to be signed. A good credit rating has several aspects and is determined by the bank or the Sparkasse within the application review.

A good credit rating includes a consistently positive private credit, which must be free of negative entries indicating default in payment obligations. If that were the case, then one would not be creditworthy in the eyes of the banks and the request for a micro-credit in 24 hours would be rejected. Only a guarantor or a second co-applicant could then still allow the loan. Involving them, however, takes valuable time and jeopardizes the fast payout. It is better, therefore, if the private credit fits from the beginning, and no unnecessary delays arise.

The same applies to the income. It must come from a fixed employment, must not be under the seizure exemption amount and be so high that all expenditures can be covered thereby. In addition, so much money must be left over from the income that repayment of the loan can be arranged.

By the way: child benefit, child support or payments from the employment office do not count as income and therefore can not be counted towards this.

Furthermore, a good credit rating builds on a fixed address in Germany, a German bank account and a minimum age of 18 years. Likewise, there must be a pass that confirms the identity. The same applies to documents about income and expenses.

Special latter is very important and will gladly once in the application for small loan in 24 hours forgotten. Only details on the loan application are made, which are then not confirmed with meaningful documents. The bank is then forced to reorder the documents, which takes time and delays the approval or payment of the microcredit in 24 hours. Therefore, we recommend that you check thoroughly before submitting the loan application, whether all the documents are complete and whether all the information on the loan application is true. Only then can the application be processed in the desired timeframe.

Payday loan with direct payment

Payday loan with direct payment

 

Many people not only want a payday loan, but also a payday loan direct payout. This is especially true if they urgently or very urgently need money and do not want the money is transferred to the account. For a payday loan direct payout, there are several options. You can apply for the loan directly from a bank, wait for the result of the credit check and then immediately take the money with you. A payment is then made at the counter or at the cash desk of the bank. More commentary at http://www.reformasobrasymas.com/worldwide-online-loans-get-a-quick-and-easy-loan-with-loan-agency-online/

Basically, the offer of payday loans is very diverse and it should not be a problem that anyone who wants such a loan and meets the requirements, also finds a suitable payday loan. The review of the loan application takes in a flash loan usually only a few seconds or a maximum of a few minutes. Then you can directly decide whether your request for a payday loan can be met. In the case of a refusal, you do not have to give up the hope of a payday loan right away, but you can opt for another offer in which the preconditions for a loan are more likely to be met.

loan comparison

You can not only take out a loan with a bank in Germany or with a savings bank, but also with a bank abroad. An alternative to a bank loan is a private loan. Here you do not necessarily know the lender, because there are various ways to take a loan on the Internet. You can seek the assistance of a private credit intermediary or register on a private credit internet portal. Already many people have found this way and could receive a payday loan from a private person. In this case, a payday loan direct payment is usually no problem, because private lenders have both the opportunity to transfer the money to the account or to pay you directly.

In a credit comparison, you should pay attention to different things. First, the question should be clarified, what kind of flash credit you prefer, how much money you need and where you want to take the credit. Direct application to the principal bank or to another bank or savings bank in your area has the advantage that you can immediately wait for a loan decision and take the money directly. Even with a loan application on the Internet is in principle a cash payment possible. However, this will usually not happen to the local lender, but in some other way. For a payday loan direct payout, for example, a payout by a postal order or a transfer of the loan amount by a courier to your home address would be conceivable.

An application is possible following a credit comparison. You can do this on the internet. Alternatively, it is also possible that you go to the nearest branch of the bank, where you want to apply for a payday loan. If you would like more information about a flash loan, you are also free to get this information on the website of the respective lender.

credit conditions

credit conditions

A payday loan is available to many but not to all. The formal requirements are the completion of the 18th year, a permanent residence and German citizenship. This is true not only for German, but also for foreign TackCredit. For private lending or for payday loans, which come through a private intermediary, the conditions may differ. Further information can be obtained from the respective lenders.

In addition to the formal requirements, a certain minimum of personal creditworthiness must be available. In most cases this is the case if you can prove a secure income. Ideal would be a job or activity as a civil servant. For some banks and savings banks, self-employed and freelancers can receive a payday loan. But this is far from being the case everywhere. Many banks exclude these groups of people from lending and thus also from a payday loan direct disbursement, since lending appears too uncertain. The reason for this is that the income of the self-employed and self-employed, unlike the income of employees or officials, is not secured and can be reduced or even eliminated at any time. Although employees can lose their jobs, they have a certain notice period and the income does not go away overnight. For self-employed people, there is usually no notice period and not so rare is the case that an important client is eliminated. This reduces the income immediately.

Another prerequisite, which is especially important for a payday loan from a German bank, is the private credit information. You have to expect that every German bank will first request a private credit statement and then make a decision as to whether it can grant your request for a payday loan direct disbursement or reject it because of negative private credit entries. Negative private credit entries may be minor or very serious. From the nature and number of negative private credit entries, it ultimately depends on whether a loan can be granted or not. For minor negative entries and if the loan amount for a payday loan direct payout is also low, a credit approval may still be granted. But this is quite different with serious negative entries.

If you are concerned or have already experienced that your loan application is rejected because of the negative entries in the private credit, you still have a chance of a payday loan direct payment. You can contact a foreign lender or a private person. private credit is not interested in providing information here, just the income or any additional collateral.

credit conditions

The possible loan sums are very different for a TackCredit direct payout. On the one hand, this depends on the offers of the banks and savings banks and, on the other hand, on your personal requirements. If you only receive a relatively low income that is just above the seizure threshold, you can not expect a reputable bank or savings bank to grant you very high credit. As a rule, only small amounts of credit are possible here, usually in the three- or four-digit euro range. An income below the attachment exemption excludes lending if no other collateral exists.

The loan amount is based on the term and the amount of the monthly repayment installment. In addition, the maturity and repayment rate have some bandwidth set by the bank. Within this range you can choose the duration and the credit rate. In addition, interest rates have a significant impact on the credit rate. They are in a payday loan direct payment without private credit insight usually higher than a payday loan, which has previously been a private credit information.

Take Out Loan- You should Meet these Requirements

If you need a loan, think of attractive interest rates, an uncomplicated application and a quick payout. But to make sure everything runs smoothly, you, the applicant, have to meet certain requirements. Which these are, what documents you have to present and what else you should consider.

The requirements at a glance

The requirements at a glance

The conditions for a commitment are almost identical for all banks in Germany. When applying, you must also submit some documents. The prerequisites for a loan at a glance:

Formal requirements

  • Age : between 18 and 75 years (maximum age may vary slightly depending on the bank)
  • Residence : permanent residence in Germany
  • Bank details : Bank domiciled / established in Germany (may also be a foreign bank)

Financial criteria

  • Permanent employment contract : In the case of fixed-term contracts, the loan must be repaid within the remaining period.
  • Income : Sufficient amount to cover the loan installment and livelihood may vary depending on the loan amount and term required.
  • Credit : the higher the Private credit score the better the conditions. Applicants with negative Private credit entries are mostly rejected (see exceptions )
  • Collateral : Usually the income is sufficient, in some cases a guarantor or second borrower is required. For real estate loans, a mortgage, for car loans the purchased vehicle is needed as security.

Required evidence

  • Employees : the last three pay slips + copy of the employment contract
  • Officials : the last salary statement
  • Pensioner : last pension notice
  • Freelancers : the last three financial statements and tax assessments
  • Self-employed : the last three income tax assessments, annual accounts, possibly current BWA

Other requirements

  • Use : A installment loan can be used for almost any purpose. As a rule, however, the financing of start-ups and purchases of securities is excluded. In addition, you may only use the money for yourself.

Who can take out a loan?

Who can take out a loan?

The most important requirement is that, as a borrower, you can repay the borrowed money on time and at the agreed rate. But also some formal conditions must be fulfilled. In detail:

Age, residence and bank details

An applicant must be fully capable of acting, which is the case in Germany from the age of 18 years. However, most banks also set an upper age limit. This is usually 75 years, but may vary depending on the bank. Most institutes also require residence in Germany. As a rule, the money is only paid out to a checking account at a bank with a branch in Germany.

Employment contract and income

Your income should be so high that, after deducting all expenses, enough money remains for the monthly installment. The amount of your income depends on how much credit you wish to take and the period during which repayment is made. As an applicant, you should always be in permanent employment. Some banks also give pledges if the fixed-term contract is at least 12 or 24 months old and there was no prior unemployment. However, you have to repay the money within the time limit.

credit

In addition to a sufficient income, you should have a good payment history as an applicant. This is checked by the Private credit. Whether the information is good or bad depends largely on a key figure, the so-called Private credit score. The higher the number in percent of a hundred, the better your credit rating. The score decides not only whether you receive the commitment to a loan, but also on what terms. Please also read our article: How to Improve Your Private credit Score.

Tip : Customers with a good credit rating usually receive better terms and conditions than creditworthy applicants. Therefore, financial experts advise on average credit ratings to so-called fixed price loans – ie loans with excellent credit ratings un-related interest rates. A selection of these can be found in our installment loan comparison, see Offers with fixed interest.

Documents / evidence

To verify your application, the bank requires you to submit various documents. Usually copies are sufficient. Make sure that these are good readable. The evidence you have to submit depends on your professional status. Depending on the bank, this may vary slightly.

The process: in 4 steps to pay

The process: in 4 steps to pay

The following example describes how to apply for an online loan. Until disbursement principle 4 steps are to be completed. Important: Not all banks grant loans to the self-employed.

1. Compare providers

Before borrowing, you should benefit from the competition of the banks, and compare different offers. Nowadays, this is fast and easy with a comparison calculator:

2. Apply online

Once you have decided on a bank, you can put your application online directly from the calculator. Enter your personal data in the input mask. It is important that you provide the information truthfully, as you will have to fill in all the information later anyway. The following data is requested by the bank.

  • Your loan request: sum, duration, rate and purpose
  • Your personal data: name, address, bank details etc.
  • Information on employment contract and income

3. Credit check

Immediately after the data collection, your credit rating will be checked. For this, you must give your consent to the Private credit clause. The bank asks directly online and in real time your score. This tells you directly whether your loan is approved by the bank and what conditions you can expect.

4. Contract and payment

If the credit check is positive, your credit documents will now be created automatically. You can now print and sign them. Together with the application documents, you submit the required documents, such as a copy of your employment contract and salary statements. From application to payment, up to two banking days elapse for an online loan. The duration also depends on which method the bank uses to verify your identity. For this purpose, two methods have been established, the post-identification procedure and the video identification procedure.

Offers with easier conditions

Offers with easier conditions

Anyone who does not meet the above-mentioned credit requirements, but still has opportunities to get money. Offers with easier access conditions offer so-called Financial Technology. These include, for example, the vendors Neofunding, Cashexpress and other alternatives. Anyone who has only little income, or has a smaller entry in Private credit, usually gets a promise anyway.

How long does it take for a loan to be approved? – 7 banks in the test

If you take out a loan, you want to dispose of your money as quickly as possible. But even the fastest bank must of course handle the application, and check the credit rating. But how long do you actually have to wait until payout? We have asked for you from well-known banks and providers, see the following table. The link in the last column will take you directly to the bank’s online application. 7 well-known lenders in the test: where it is particularly fast, and where it takes longer. 

That’s how we tested

How is the period until payment made?

Conclusion

Conclusion

An average of 3-4 banking days pass before the money is ready for transfer. But there are big differences. A loan with payment on the same day offers the Fin-Tech Viloan. Also very fast is the Paramibank loan with 2 days. Well-known institutes like the Camibank or the Bankate need about 4 days. With 6-8 working days the longest takes it with the mediator Maxcredit. The test was pretty straightforward. The staff were mostly friendly and competent. Once we had the “right one” on the phone, we also came quite quickly to the desired information. Only the waiting time at the hotlines was sometimes a bit long. The results were a bit surprising after all. So we just went from the known direct banks from a much shorter duration of processing. Almost as expected, the Financial Technology Viloan was the pioneer in terms of speed and innovation in the transaction.

  • On average, a borrower in Germany, including the transfer to his checking account, must wait about 5 working days for his money.
  • There are big differences: it is also much faster, if you know where.
  • Pure direct banks are not necessarily faster than the others.
  • Fin techs are very fast with the payout. However, there are restrictions on the terms.