In this article, you will learn everything you need to know about loans and how to do a free loan comparison quickly and for free. But before that, on the theory.
The word credit generally means belief or trust. It was formed after French or Italian, both of which derive from the Latin verb credere, which means trust or belief.
What types of loans are there?
There are different types of loans for companies and private customers. In the following, I will deal with private loans. Private customers are usually dependent on employees or private persons who are not commercial.
Regulations apply here, which the consumer protection on the basis of the regulation for the price information or also for the effective annual interest rate. This should make it easier for customers to compare the different loan offers better.
The age of the majority must be reached for borrowing. Most commercial banks rely on automatic credit assessments to determine this. The institutes then receive this data based on existing business relationships with the potential new customer and on the basis of the Credit Checker information.
An individual form of cash loan is the so-called mortgage loan. The limit is automatically adjusted based on the customer’s regular incoming payments. The payments can be pensions or salaries.
Acquisition loans refer to loans that are available for a specific consumer purpose. Usually, the term is six years. When repaying, not only the agreed rate but also the corresponding interest is payable. Processing fees are generally additional.
Home loans also count as loans
This is a loan that is used for the purchase or construction of the mostly residential property. In most cases, repayment is made through annuities, which are common over a relatively long period, usually up to 30 years. Pre-financing, securities loans and guarantee loans are also types of private loans, which in turn are tied to specific terms.
In principle, the granting of credit does not necessarily have to be carried out by a credit institution or a bank. For example, a property loan can be granted by a neighbor by lending flour or eggs as a so-called lender.
By the way, if you want to take out a loan, you should do a loan comparison. You can compare loans here:
Negative Credit Checker and still a credit ?!
Which German citizen is not aware of the word “Credit Checker”? In 1927, the “Protection Association for General Credit Protection”, abbreviated “Credit Checker”, was founded. If you want to take out a loan, the Credit Checker is your constant companion. If you have a “negative Credit Checker”, you will probably not get a loan from banks.
Can you get a loan at all with a negative Credit Checker? For this, we should keep in mind what Credit Checker Holding AG is and what benefits it should have. It is nothing more than a credit bureau, which should help its contractual partners such as banks and credit institutions so that their customers can also repay the loan taken out (= protection against a loan default). Credit Checker also wants to protect consumers from over-indebtedness.
Credit Checker allegedly currently has data on around 66 million Germans, which corresponds to around 75 percent of people in Germany. So that Credit Checker’s contractual partners can get an idea of future borrowers, Credit Checker sets a score of 1 to 1000 for each person.
This value can be used to determine how high the probability of credit default is. The higher the scoring, i.e. the closer the value is to 1000, the greater the credit rating. So if you have a negative Credit Checker, it means nothing else than that you have a very low scoring value.