In the media, you may have read reports or seen that installment loans are now available at very low interest rates of three or less percentages. You may be wondering if you would get such a cheap loan or if such low interest rates are just a promotional tool, but the practice looks quite different. As so often, it is certainly a mixture of both, especially if you do not have the best credit rating. However, there are some measures you can take to increase your chances of getting a particularly good loan.
Check Private Credit and demand self-assessment
In most cases, loan seekers whose credit application has been rejected by the bank are not given the real reason for the negative credit decision. At a relatively high percentage, it is a negative Private Credit entry that leads to credit rejection. However, research has repeatedly found that a not inconsiderable part of these negative features is erroneous or wrong in the Private Credit. So it could be that you have a negative entry in the Private Credit that you know nothing about. Therefore it is a basis that you inform yourself at least once a year about your current Private Credit data. If you find there an entry that does not correspond to the truth or should already be deleted, you can arrange all further steps.
Opt for special offers
The installment loan is still a classic financing option and can be used universally, but more and more credit institutions are beginning to offer special variants of the installment loan. These are so-called special loans, which are mainly characterized by the fact that they are intended for a specific purpose. In practice, you will find in particular the following special variants of the installment loan, which are often equipped with even cheaper interest rates:
• Car loan
• Moving loan
• Holiday credit
• Housing loan
• Credit for apprentices
Since many banks offer such special loans at a lower interest rate than ordinary installment loans, it is definitely worth comparing the offers. If you then have a financing request that fits a special loan offered, it often makes sense to opt for the special variant of the installment loan due to the lower interest rates.
Take the chance of special repayments
Another way to improve your chances of getting a loan is to arrange special repayments. In this case, the bank sees that in the future you can probably afford to make an unscheduled repayment in addition to the ordinary repayment. This can be the case, for example, if you occasionally receive special bonuses from your employer or receive a performance-based compensation. Inheritances, capital released and other inflows can also be used to make a special repayment and thus pay off the loan faster.
As a married couple, make the loan application together
Significantly better chances to obtain a loan, have two borrowers who submit an application together. Therefore, it is recommended that you, for example, as a married couple together make a loan application, because then the chances are in the vast majority of banks higher than if a spouse alone makes the loan application.