Borrowing a loan is no longer unusual in the modern world and for many people it is the only way to fulfill a wish or to make a larger purchase. There are now a variety of different credit products on the market – one example is the special loan. What this is all about and how it works, we show you here
The special loan – what exactly is this and how does it work?
Special loans are usually nothing more than ordinary installment loans, for which the lender sets a specific interest rate. This is usually measured by the creditworthiness of the borrower. Whether the loan is earmarked or not, depends on the individual offer of the bank.
In the meantime, special loans are no longer only issued by branch banks, but also by direct banks from the internet. Frequently, the conditions for the borrower there are much more attractive, and the process is no longer as complicated as it was in the past. Thus, virtually anyone with a regular income can apply for a special loan. This can then be used for example for the financing of a car or for another purchase.
What advantages and disadvantages does a special loan offer?
However, the term special loan often also describes a loan that is offered by the bank on “special” terms, which are generally not valid. This can be, for example, particularly favorable interest rates, but also possibilities for special repayment.
Thus, in any case, a special loan offers the advantage of a great deal of flexibility that ordinary loans do not have.
Nevertheless, it is important that as a borrower you are nevertheless aware that such a loan may not always be the best option. Because: If one compares the offer for a special loan with other loan offers, it often turns out that even an ordinary installment loan does not necessarily have to be more expensive – especially not if you apply for it via a direct bank on the Internet. It should be clarified in advance with each bank individually, which is understood by the term “special credit” and whether this really offers advantages over other credit products.
Are there also credit bureau-free special loans?
For consumers with a regular income and a good credit rating, taking out a special loan is usually not a problem. The situation is different, however, if you already have a negative credit bureau entry or the salary has been seized in the past. In this case, you have to look for a special non-credit bureau special credit, which is not easy, but not completely impossible.
The terms and conditions for non-schaffreige loans are usually not quite as attractive, since the lender here assumes a higher risk that the borrower can not repay his installments reliable. If you still want to opt for such an offer, you will find numerous banks on the Internet. However, you should always make sure that this is a reputable bank.
How to find the cheapest provider for a special loan
Special loans are given today by various banks – this can be both savings banks as well as branch banks and direct banks on the Internet. Because it is hardly possible for the consumer to see all the offers available on the market, one should first make a credit comparison. Nowadays, this is made very easy via the Internet: a comparison is not only completely free but takes little more than ten minutes.
For this, only a few relevant data have to be entered, such as the desired amount of the loan and the term. Now the calculator evaluates this information to then show the consumer all matching loan offers.
From the results list, you now only have to select a suitable offer, in which the conditions are right. A tip: Make sure that he effective rate is as low as possible. This includes all additional costs charged by the bank for the special loan. The pure nominal interest rate, on the other hand, does not include any processing fees or other costs.
Looking for the right loan? – These possibilities are available! Anyone who wants to consume today, but does not have the right money, can obtain a means of payment via a loan. The possibilities for consumers are almost unlimited: the external financing of furniture, electronics, travel and many other things is regularly advertised in colorful advertisements. But what requirements must be met for a loan agreement? And which loans are suitable for specific projects?
If someone lends money, he concludes a loan agreement. This commits to a repayment according to the contractual conditions. But before the lender, also known as a creditor, actually makes his signature, he examines the borrower or debtor. Because only this ensures that he gets his money back at the end.
Specifically, this includes past behavior and a forecast for the future. Only if the sum is a positive impression, a credit comes off.
For the past behavior the databases of the credit bureaus are consulted. They are experiencing a variety of financial transactions. For example, if a cell phone contract has been completed, that is listed there. In the past, all liabilities were always served on time, which leads to a positive credit rating. A loan is then usually nothing in the way. Incidentally, the best-known credit agency is the credit bureau. Almost every German citizen is registered with her.
The collateral also includes the assessment that a debtor can meet his credit obligations in the future. For this usually an unlimited employment contract is to be submitted. Because only by this means are available for the upcoming installments.
The variety of credit types
The money economy has invented a variety of loans to allow consumers to consume. The types differ mostly in terms of the duration of the money lending. The most common forms are the credit line, the installment loan, the frame loan and the mortgage loan. The list follows the length of the contractual relationship from short to long term. What applies to the named species in detail?
A sample calculation: That costs a loan
Banks lend money because they want to make money from it. The debtor has to pay additional fees in addition to the loan amount. The fees consist of interest and costs for the provision of the money. Debtors should always pay attention to the effective interest rate in the contracts. It is suitable as a comparison criterion because it includes most of the costs incurred.
For example, if someone lends 10,000 euros to a bank, they are usually offered various repayment options. At a monthly rate of 340 euros, a total claim of 12,240 euros results for a 36-month term. On the other hand, if the debtor wants to reduce the monthly burden, this results in a rate of 230 euros for a period of 60 months.
But the total debt increases to 13,800 euros. Thus, the term of a loan is crucial for the amount of the total loan.
A term for different products
The term Barrio loan uses two credit providers for completely different products. Both use the spelling Barrio loan in their own documents. It concerns a special three-way financing of the Audi bank for the corresponding motor vehicles as well as a consumer credit of the financial administration.
In borrowing guides, the third term used is Barrio loan for a flexible call-off loan. However, this product name is currently not used by the well-known banks offering the appropriate credit line. Instead, these speak of call- off loans or a second badge.