A key factor in this context is a positive private credit, and the majority of loan applications fail year after year. A negative note in the private credit file will work for many years. Whether unresolved checks, an unpaid mobile phone bill or a burst change – the credit bureau escapes nothing. Furthermore, any personal bankruptcy will be recorded in the documents. In most cases, the negative entry will be deleted after three years.
However, a deletion is not really, because only an indication is set that the debt is settled. Thus, even after the first three years, it is obvious to the creditor that in the past the claimant had carelessly or unreliably dealt with his payment obligations. Not a few loan companies use this fact as a reason to deny the consumer € 4,000 in credit.
Equally important from the point of view of the banks is a permanent employment contract. It is considered that only non-terminable employees can service monthly loan installments. The unemployed, welfare recipients and housewives are excluded from this analysis. Self-employed, on the other hand, often have a much harder time. The income of the applicant should not be fully needed to cover the cost of living. A sufficient margin for servicing the loan installments should therefore be given. As the financial institution does not want to rely blindly on the information in the application, two salary statements must be submitted. For the sake of simplicity, the customer must have permanent residence and account details in Germany. Due to the lack of business ability, only persons of full age are able to borrow up to 4,000 euros. This can be obtained from the following three providers on attractive terms.
The best conditions
First place can be claimed by Targo Bank. Interest rates are between 4.29% and 9.99%. At best, a monthly installment of € 90.69 will be due for the € 4,000 loan with a maturity of 48 months. With unsatisfactory creditworthiness, however, this can be twice as high. The processing fee is already part of the effective interest rate. An account maintenance fee is not charged even with loan amounts of up to 50,000 euros. Unscheduled repayments are related to a lock-up period of 6 months. Accordingly, after expiration of this period special payments are possible at any time and free of charge.
The loan broker CreditorsOnline also has the same approach with respect to special repayments. The interest rates demand vary between 4.35% and 10.90%. The decision will be made after checking the creditworthiness. On the basis of a credit period of 48 months, a monthly loan installment of EUR 90.79 is to be transferred to the bank for the EUR 4000 loan. The broker is able, on the occasion of the large number of cooperating credit institutions, to broker loans up to 200,000 euros for terms of up to 84 months.
On good terms, the € 4,000 loan can also be obtained through Credit Europe Bank. For this purpose, annual effective interest rates between 4.40% and 11.95% are charged. With an impeccable credit rating, the result is a recurring loan installment of 90.88 euros. The mentioned interest rates include the provision commission. The account management is free. Special repayments are also possible through this provider after expiry of the period of notice of 6 months. As with the other financial institutions, the conclusion of a residual debt insurance is also conceivable. If the borrower can no longer service the installments of his € 4,000 loan due to unemployment or disability, the insurance will replace the debtor and pay monthly installments.