An important element in every creditworthiness check is the information. Almost every bank in our country will automatically obtain information if the customer agrees. In most cases, the bank can already determine from the score whether borrowing is possible or not. This is why you need the text loans privately. It becomes extremely difficult to take out a personal loan if one of the following negative features is stored:
- Declaration of an oath
- Court order
- Arrest warrant
- Opening private insolvency
- Unfinished loans
In all these cases, you can practically assume that you will not receive any personal loan or any of the other loan types from the bank. In such cases, there is often only one option, namely to take a so-called loan.
Credit a special form of personal loan?
Since the term personal loan is defined very broadly, not only installment loans, framework loans or call-off loans of the banks fall into this category, but also so-called loans. These are special loans that are usually not issued by banks, but mostly via credit intermediaries from foreign banks. By far the most providers in this financing sector are in Liechtenstein and in Switzerland, so that Swiss credit is often used. The loan without SCHUFA is otherwise a normal installment loan or personal loan, only that the lender waives in this case, the SCHUFA information to obtain. Thus, credit assessment is based solely on the applicant’s income and any eligible collateral. However, possible collateral also plays a more important role in ordinary personal loans, so you should also be aware of this point in connection with taking up a personal loan.
What collateral is available for personal loans?
In particular, if the creditworthiness check has shown that the applicant basically has sufficient creditworthiness, but the bank still classifies the credit default risk as slightly above average, it is advantageous for the loan seeker to be able to provide collateral. Many banks even demand credit security under the conditions described, because lending is otherwise considered too risky. While the mortgage almost exclusively serves as collateral for a real estate loan, almost all other typical collateral comes in the context of securing a personal loan, namely:
- Pledging of savings
- Pledging of securities
- Assignment of claims
- Security transfer
The first four credit collateral listed, i.e. the guarantee, the assignment of claims and the pledging of savings and securities, come into question in principle for each personal loan. On the other hand, in the case of a transfer by way of security, it is generally only used for such personal loans as collateral that involves the financing of a car purchase. Whether and to what extent the bank demands credit security at all depends on the individual case. However, as a borrower or loan seeker, you should remember that an existing security can help improve your credit rating and make your application more likely to be approved.
Important conditions for personal loans
There are some standard terms that make up the vast majority of personal loans, regardless of which bank the loan seeker ultimately chooses. Since personal loans are almost always installment loans, the following conditions apply, which you should also consider when carrying out a credit comparison:
- Effective interest rate
- Creditworthiness-dependent or credit-independent
- Loan amount
- Running time
- Credit rate
In particular, the distinction between credit-based and non-credit-linked lending rates has become increasingly important in recent years.