Loan types: an overview of the most common ones

There are many different types of credit and the general term for all is the installment loan. Here, as can be seen from the name, the loan is repaid to the creditor in installments. The interest rate and monthly installments remain the same over the specified term.

Installment loan: the loan with monthly constant installments

Installment loan: the loan with monthly constant installments

It is typical of the ordinary installment loan that the installment is always made up of an interest component and a repayment component. The effective annual interest is calculated on the respective remaining loan amount and thus the remaining debt decreases during the term and the borrower pays less and less interest monthly. The lower interest component is then offset by a higher repayment component. The loan is fully repaid at the end of the term.

Overview of other loan names

Overview of other loan names

There are other names for the installment loan, such as consumer credit, consumer credit or online credit. With the latter, the lending is done online via the Internet and it is usually associated with more favorable terms than, for example, a loan from your own bank. There are also platforms that compare different loans online, for example smava. However, there are also loans with slight differences, which are all classic installment loans:

Instant credit

The processing of the credit request is particularly quick, which means that the money is quickly made available. This is possible because the lender uses an automated process and usually the borrowers receive an acceptance or rejection on the same day.

Credit from private

The difference with a private loan is that the lender is not a financial institution, but one or more private individuals. Such loans are granted by certain platforms that act as intermediaries, for example auxmoney or Lendico.

Officials credit

The civil servant loan is a loan that is usually accompanied by particularly favorable terms and can only be claimed by civil servants. The better conditions are that civil servants are considered to be particularly creditworthy because they have a very secure income.

Auto loans

The car loan is a dedicated loan and most of the time the interest rates are lower than normal because the vehicle serves as security.

Modernization credit

Another dedicated loan that supports the renovation or modernization of apartments. Unlike a real estate loan, it is not entered in the land register.

Loans without Credit Bureau – requirements

For many consumers with financing needs, the problem arises that the Credit Bureau information does not look quite as good, and the banks, therefore, refuse to approve the loan.

However, contrary to popular belief, negative Credit Bureau entries are not necessarily an obstacle to finding a loan – it also always depends on the overall situation in which the potential borrower finds himself.

Loans without Credit Bureau – requirements

Loans without Schufa - requirements

Of course, there is also the possibility to get a loan without Credit Bureau. Before you go this route, however, your own situation should be analyzed in more detail and not immediately painted in the darkest colors: the first course should lead to the house bank where you have been a customer for many years and are known accordingly.

Because the advantage of the house bank is simply that the scope for negotiation is greater: the bank does not want to lose the potential borrower as a customer, but this is a risk if the loan is refused. However, this does not mean that the house bank inevitably makes a loan approval against all concerns and aspects that speak against lending: the goodwill of the bank is just a little higher, which in turn also depends on how good the customer relationship is actually.

Nor is it said that negative Credit Bureau entries necessarily mean that you cannot get a loan from a reputable German bank because the creditworthiness is checked more extensively than on the basis of Credit Bureau information. Factors for checking the creditworthiness are, for example, the monthly salary, saved assets and overall the income and expenditure structure of the loan applicant.

Interested parties who actually no longer get a loan

Interested parties who actually no longer get a loan

Due to their creditworthiness can apply for a loan abroad because outside of Germany a Credit Bureau query is not relevant. Nevertheless, the creditworthiness is also checked here, which means that a fixed, not too low and above all permanent salary of the potential borrower is necessary.

If the Credit Bureau-free loan is applied for in Switzerland, there must also be no Swiss debt, but debt in Germany is irrelevant. The respective living situation of the customer is also illuminated abroad: how many people must he provide with his salary? How old is the customer? How much are his monthly expenses? Account statements are required to evaluate the latter.

However, borrowers have to say goodbye to a Credit Bureau-free loan from Switzerland, Austria or Spain from the idea that it is a cheap loan, as a rule, there are interest premiums that the borrower has to bear to secure the bank.

How the cash loan term increases the cost of your loan

A cash loan is usually taken out due to economic hardship or business necessity. The borrower becomes dependent on the bank with a cash loan. If the consumer makes mistakes when taking out a loan, this has far-reaching consequences. This “advisor for your cash advance” should help you to avoid these mistakes.

How the cash loan term increases the cost of your loan

How the cash loan term increases the cost of your loan

Many only compare the loan amount and the »effective interest rate. As a result, consumers are trying to get a cheap cash loan. It doesn’t matter what the cash loan is needed for. Whether car, vacation or for business purposes. But the loan term is much more important.

The longer you pay off your cash loan, the more expensive it becomes. The flip side of the coin: the faster you pay off the cash loan, the higher the monthly loan installment. You should think carefully before signing the contract:

  • What is the optimal loan term for you?
  • What happens to the investment after the cash loan is paid?
  • What are the major expenses during the loan term?
  • You should also include unforeseen things in your bill.

Cash advance provider

Only trust banks that you know or have a good reputation for. We recommend that you research this carefully before borrowing. The Internet also offers help. Basically, the bank should have a German branch. This offers them legal certainty. It is also good to know: what experiences other borrowers have had in the past with their cash loan from this bank?

Cash loan contract

Before signing a cash advance, you should carefully check the following:

  1. The bank is registered in Germany.
  2. Can the loan contract be changed in advance?
  3. The bank waives an »assignment clause.
  4. Are the loan costs (not the loan interest!) Exactly defined in the contract?
  5. Is there a repayment schedule for your building loan.

Caution should be exercised if these points do not apply. In this case, it is better to find another provider for your cash loan.

Cash credit and repayment

Every reputable cash loan includes a »repayment plan. Alternatively, information about the number of monthly installments, the amount of the credit rate and the amount of the last credit rate is sufficient.

Don’t be afraid to ask the bank what happens if you are in arrears with your cash advance. This is the so-called goodwill test. Here, the bank should show up to 3 credit installments.

Cash credit and credit default insurance

Cash credit and credit default insurance

Some banks offer their customers so-called credit default insurance in connection with a cash loan. This is said to B. in the event of unemployment continue to pay the loan installments for up to 12 months. But beware!

These insurance policies are very expensive. They drive up the cost of credit enormously. The monthly insurance contribution is based on the loan amount. Contributions of 50 or 100 dollars a month are quickly achieved without paying off the cash loan. It becomes very critical if the bank makes such insurance a condition for a cash loan.

In this case, we advise you to “steer clear”. Unfortunately, these methods of selling a cash advance are not uncommon. This affects not only small but also large and well-known providers. Think about whether a credit default insurance really makes sense for your cash advance. Note that the cash loan remains affordable for you.

Cash credit and interest

In addition to the loan term, the cash credit interest rate is the factor that has the greatest impact on the amount of the loan rate. But interest is not the same as interest. A distinction is made between »nominal interest and effective interest. The amount of loan interest also depends on its credit rating. This means that not everyone gets the same interest from the same bank. Bank advertising is particularly tempting.

Don’t let this tempt you. Most of the time you don’t get the advertised loan interest. Less than 3% of all borrowers have a small chance of getting this advertising interest. It is therefore not decisive with which cash loan interest the bank advertises. What is more important is how high your personal loan interest for your cash loan is.

Debt cash advance

Favorable cash loan interest rates entice debt restructuring. It often seems that this or that offer makes your building loan even cheaper. Here, you should definitely consider some facts. If you are rescheduling a cash advance, additional costs will arise. A renewed closing fee or other fees that are charged for a cash rescheduling. Is the loan term the same? The cash loan is apparently cheaper by extending the loan term. In reality, the cash loan only gets more expensive. After all, you pay interest longer.

What are the borrowing costs? It is not uncommon for horrendous fees to be hidden in a cash loan contract. For this, providers like to make the loan interest very cheap. No matter how the costs are defined. Whether interest or loan fees. The bottom line is cost.

To determine if cash advance debt rescheduling really makes sense, compare the total cost. What did you really pay for your cash loan in the end? To do this, add up all credit installments plus all loan fees and other costs. How to calculate what your cash loan really costs. You will be amazed at the result.

Requirements for a loan – 1st 0% credit

Online loans have become one of the preferred financial instruments when you need urgent money. One of the reasons for the popularity of this trend is the flexibility it offers when granting loans and the speed of response.

These quick and easy loans are designed to meet unforeseen or emergencies that may arise on a daily basis. No one is exempt from accidents and unplanned expenses, the idea is that you do not have to run out of savings in those cases and you can opt for a quick solution.

Most common requirements to apply for a loan online

Most common requirements to apply for a loan online

Each company has its own requirements to grant loans. However, most have in common that they are much more flexible than banks and are designed so that people from all walks of life can access them. Even people reported to credit bureaus or without credit history can request them.

  • Be of age
  • Certificate of Citizenship or Foreigners
  • Resides in the country
  • Be a bank account holder
  • Have your own cell phone and emails (not from companies)

As you can see, the requirements are much easier to meet compared to a traditional bank. To apply for the loan you just have to fill out a form on the companies website or use a product comparator that will help you get the best option.

Once the information is completed you will get the answer in less than 5 minutes in most cases. The idea is that you can make several requests and consider what your best options are before committing to a particular company.

It is also important to keep in mind that assuming a loan is an obligation and that we must have sufficient payment capacity to cover it or we run the risk of ending up paying fines and damaging the credit history.

How do online loans work?

How do online loans work?

Every day there are more people who hire loans online in the country. These products function as transactions between lenders or private equity companies and individuals. Loans are usually for relatively small amounts and with short payment periods.

To qualify for an online loan you must fill out the company’s form with your personal data, as well as the amount you wish to request and the time you plan to pay the debt. The system automatically verifies the information provided and in less than five minutes you will have the answer you are looking for.

Once the loan has been approved, you will have to complete the requirements that are required and in a period of no more than two days you will have the money in your account. In this way you can solve any unforeseen event that comes with a quick and easy loan.

Here are types of loans you can get:

  • Quick Loans Online.
  • Money Loans
  • Credits online.

Tips for choosing a loan online

Tips for choosing a loan online

It is natural that when you find so much online loan offer you do not know which one to choose. In addition, on each website you will have to fill out the form and that can get tedious quickly. For that reason it is advisable to use an online loan and credit comparator .

In this platform you can enter your data, as well as the characteristics of the loan you are looking for and the system searches among all the loan companies that best fit those parameters. The terms and conditions of each one will also appear on the screen.

So you can save time since you will not have to fill out all the forms and in less than 5 minutes you will know if they have approved the loan or not. Also, one of advantages is that it only dealt with reliable companies and secure platforms.

To choose the loan that best suits your needs you should consider what your real repayment capacity is and read the terms so you know what happens in case of default or if there are hidden clauses. Avoid asking for a loan unless you really need it and meet your payment deadlines so you don’t have to pay more in fines.

It is also recommended that before choosing a company, read the reviews of other users and know their experiences. This way it is unlikely that you will encounter unpleasant surprises later.

Immediate Loans: 1st 0% credit

In the day today, it is common to meet unforeseen events that we must resolve quickly as a medical emergency or an urgent repair at home. Sometimes we do not have enough money to cover these types of situations and it is necessary to ask the bank, a family member or a friend for money.

However, this can lead to some complications. In the case of banks, procedures are delayed and require a number of requirements that are difficult to cover in the short term. While asking family and friends can lead to awkward situations that you might prefer to avoid.

How to choose immediate loans?

How to choose immediate loans?

This is where the immediate loans that have been designed to solve unforeseen events come in without you having to touch the savings. And unlike banks, as the name implies, these types of loans are delivered almost instantly so you can have the funds as soon as possible.

Immediate loans are an online modality where companies and private entities grant funds to people who request it in a period not exceeding one day. The idea is that the client can access the money quickly and establish the period in which he can pay.

Every day there are more people who access these types of loans as they are presented as an alternative to the complicated processes of the banks. In addition, the requirements for immediate loans are much less stringent than those for bank loans and other similar products.

In recent years the number of companies offering immediate loans has increased. This can make choosing the one that suits you best an arduous job since each entity has its own terms and conditions. However, there are different factors that we can consider to choose from.

Perhaps the most important aspect to consider is the lender’s reputation. Reading the reviews that other users have published will give you a more complete idea of ​​how the company works and what you can expect when applying, transferring funds and paying the debt.

It is also necessary to read the terms of each company to avoid abusive clauses such as hidden charges and fines too high in case of default. Even if it is a reliable entity, it is advisable to read what are the consequences of going over the payment deadline.

On the other hand, it is also advisable to verify what are the requirements that are requested for a certain type of loan and thus ensure that we meet them. They are usually easy to obtain as a citizenship card and be of legal age but each company is different.

One option that will help you choose an immediate loan is to check the minimum and maximum amounts that each company lends as well as the maximum lapses to pay. Remember that these types of loans are usually canceled with a single installment at the end of the term. You should also check the additional costs and the total amount to be paid.

How can Good Credit help you choose an immediate loan?

With Good Credit, you can save time when choosing the immediate loan you need with your product comparator. The objective of Good Credit is that you can check all available loans according to parameters such as the amount to be requested and the time to pay it.

For this, Good Credit uses a state-of-the-art technological platform that is capable of displaying results in seconds. This way you only have to enter your data once to see all the options. While if you do it on your own you will have to fill out a form for each page you visit.

Good Credit is a multinational company with operations worldwide. In addition, it has a support team in Spanish 24 hours a day to solve all your doubts and problems that you may encounter when using the platform. The goal is to give you the best possible experience.

On the other hand, with Good Credit, you will increase the chances of getting an immediate loan approved by 85%. For that reason, most platform users reuse their services. Likewise, more than 80% of the requests get a response in less than five minutes.

The best way to save time on cumbersome procedures when processing an immediate loan is to use a comparator like Good Credit. So you can devote yourself to study your options better instead of accepting the first one that appears on Google.

You also have the security guarantee of the platform since it only works with reliable companies and with a verifiable reputation. Directly in the comparator, you can read the reviews of other users who have used a certain company and what are the terms and conditions of each loan so that you avoid unpleasant surprises later.

Advantages of immediate loans

Advantages of immediate loans

  • Quick Procedures
  • Flexible requirements
  • Lapses to pay comfortably
  • Designed for people of all strata
  • Money in the account the next day

These are just some of the main advantages of immediate loans for individuals. In general, its main advantage is that they provide liquidity at important times and you can resolve any urgency that comes your way.

On the other hand, immediate loans have the advantage of being more flexible when applying. For example, a significant number of companies grant loans to people with a low credit history or even to those reported at credit centers.

This means that immediate loans are presented as a viable alternative for many Colombians who do not have access to traditional bank loans. You can even help build your credit by paying the debt on time.

In addition, online loans have the advantage of saving you time on paperwork. Gone is the paperwork and the rows in the offices of the banks. You can do everything from the comfort of your home directly through the pages of the entities.

If you use Good Credit, the time savings multiply as you only have to do the procedure once and the platform connects you with the companies. The goal is to let you know if you qualify for an immediate loan as soon as possible to continue your search.

How to get an immediate loan?

How to get an immediate loan?

  • Fill out the form
  • Make the request
  • Wait for approval
  • Receive the money in the account

Broadly speaking this is the usual procedure to obtain an immediate loan. Among the advantages of this type of loans is the speed and ease it provides to the client at the time of making the request.

However, each page has its own conditions and procedures from the moment the process begins until the debt is canceled. The objective is for the client to find an agile and simple experience when it comes to needing extra money to solve unforeseen events.

That is one of the reasons why in recent years immediate loans have been gaining ground. Customers instead of having to spend hours in bank procedures and with a high risk of being rejected by the application. In contrast with online loans, the answer is obtained in minutes.

But it is not only the speed in the response that is appreciated but also in the liquidation of the funds. In a period of no more than two business days, you will get the money in your account, even in most cases it only takes a day.

All these facilities make immediate loans a good option when you need fast money for any unforeseen events that you may present in your day to day, whether for health, at home or in the car.

What is the procedure to receive a loan?

Although in the previous section we were reviewing in general the processes to obtain a loan, in this section we will detail step by step what is the procedure to request a loan and cancel the debt. This way you will know what the general conditions are in these cases.

The first thing we should know is that each entity determines its own conditions when issuing a loan. For this reason, you must be attentive to what they offer to make sure you can fulfill your obligations after receiving the money.

Currently, in the market, you will find a wide range of lenders and companies dedicated to this activity. Choosing one can be overwhelming, however, it is worth reading carefully what each one offers to avoid falling for deceptive offers.

For example, any company that offers you a loan in which you must advance money either in management expenses or notaries or administrative costs is probably a scam. Serious companies lend the money and include those expenses in the total debt to make it easier for the customer.

Each page has its own form to fill out so it is recommended to use a comparator like Good Credit to know what are the best offers available and not have to waste time on multiple pages.

At the time of making the request, we have to fill in how much money we expect to receive and in what period of time we want to pay it. Although not usual, some companies even allow payment by installments.

Once the period has elapsed, the client must pay both the money borrowed and the administrative costs of the operation, the commission of the company and the interest accrued on the debt during that period. Timely payment can save you money in fines and helps you keep a good track record so you can reapply for a loan later.

How to apply for a quick and easy loans?

There are situations in which quick and easy loans can help us out of trouble. Family emergencies, unforeseen repairs and health problems are some of the problems that we can solve in this way. The idea is to have access to the money we need without resorting to savings.

Currently in the market we will find a large number of websites where you can find quick and easy loans. This will allow us to take the loan that best suits our needs and ability to pay. It is important that the money requested is for significant expenses and avoid borrowing from surface expenses.

Characteristics of fast loans

Characteristics of fast loans

One of the advantages of this type of financial product is that the requirements are much more flexible than if we requested a loan from the bank. In fact, fast and easy loans are available to people of all social strata or with a low credit history, even for those reported at credit centers.

  • Security
  • Short response times
  • Flexibility in payment lapses
  • Simple requirements
  • Interest rates between 23 and 29%
  • How do fast and easy loans work?

The main characteristic of fast loans is the possibility of processing them in a short time, which makes them a perfect alternative to solve unforeseen events. To access these products, just fill out a form on any of the websites that offer the service and wait for the response that usually takes less than 5 minutes in most cases.

The institutions and private companies that grant this type of loans operate under the legal framework of the country. Each one must be registered and adhere to the maximum interest rates in force. In most cases they are private equity companies and the loan amounts are usually low amounts.

Requirements to apply for a loan

Requirements to apply for a loan

Each entity has its own requirements to approve a loan, but in general they are usually flexible and can be summarized as follows:

  • Certificate of citizenship or foreigners
  • Be of age
  • Reside in the country
  • Be a bank account holder
  • Mobile
  • Email

In this way you can request the loan quickly, which will be recorded in a period not exceeding two days directly in your bank account. When making the process it is important to know that you can decide both the amount and the payment period.

Here are types of loans you can get:

  • Quick Loans Online.
  • Money Loans
  • Credits online.

How to choose a fast loan?

How to choose a fast loan?

Although loans are quick and easy, choosing the one that best suits our needs can be complicated. It should also be remembered that we are talking about a financial product that should not be taken lightly and that we will be obliged to pay in full, including interest.

Therefore, it is recommended that before processing the loan we calculate exactly when we need money and what is our ability to pay to avoid borrowing beyond our means. The good thing is that when it comes to repairs or purchases for the home you can request quotes where the amount of the purchase is indicated.

Another recommendation of the experts is to correctly assess the situation and if it is really necessary to borrow because these loans usually have higher rates. Ideally, use them only in unforeseen or emergency situations.

Take advantage of credit comparators

Services can make your life easier when choosing the right loan. Here you can enter your data, how much you want to order and how long you want to pay it, then the platform processes your information and tells you which companies offer what you are looking for.

One of the advantages of comparators is that you can quickly see the most important data of each product such as interest rates and loan terms. In this way you will avoid taking surprises with hidden or misleading clauses.

On the other hand, the company works only with recognized private companies and lenders so you can request your product with complete confidence. In addition, it saves you time since you will not have to fill out forms on each page that offers this type of products.

Apply for your quick and easy loans so you can save time when you need it most. In addition, our platform guarantees security and confidence when doing the process.