Do I get a payday loan? – Even with negative private credit?

Can I get a payday loan?  When do I get a loan?

A payday loan is nothing special in this day and age. Almost everyone lends money to the bank when their own account is empty. Many people ask themselves, ” Do I get a loan? “This can not be answered flat rate, the lending is a rather complex topic and a positive loan commitment depends on many individual factors. However, there are a few credit requirements that anyone in Germany who is interested in a loan has to meet:

  1. The borrower must be 18 years old
  2. The borrower must have a job and can present a certificate
  3. The place of residence and the bank account must be in Germany

Often, banks also need proof of income and an indefinite employment contract, but this does not apply to all loans, which is why it is not one of the KO criteria for lending to editors at us. Teenagers and children can not take out loans in Germany by default and get into debt. In Germany, I only get a loan if I am of legal age and therefore able to work. Contracts with minors are inadmissible.

How much credit can I get?

How much credit can I borrow?

The amount of credit you can get depends primarily on your credit rating and the amount of income available. The higher the income and the better the credit rating, the higher the possible loan amount. You also have to differentiate what type of loan you want to get. One is interested in a mortgage loan to buy a home or build, other conditions apply, as the bank usually uses the property as collateral. As a self-employed person you also have the opportunity to take out a micro- loan. The credit rating is not necessarily decisive here, but rather the business idea and one’s own personality. Many people simply want to even their credit facility increase to have more leeway in their account. Although this is not a direct loan, similar conditions apply here. The classic loan that most consumers are interested in is probably the conventional installment loan. Here it depends very much on the income and creditworthiness of the borrower, since the rates of the loan are calculated on the basis of the income.

Example calculation for a possible loan

  • Personal net income: 1.800, – Euro
  • Fixed costs (warm rent, additional costs, car, insurance etc.): 800, – Euro
  • Cost of living (shopping, leisure, etc.): 500, – Euro

In our example, 1,800 – 800 – 500 Euro results in a monthly amount of 500 Euro. The available money can not and should not be considered 1: 1 as the maximum monthly loan amount. The editors of us recommend to keep at least 20% of the available income as a security reserve and not to plan. In our example, that would be 100, -Euro. We would therefore have to pay 400, – € to each month theoretically a loan. With an average repayment term of 48 months, the maximum credit in our example would be 19,200 euros. This assumption is unfortunately wrong!

You get the loan, the bank gets the interest

Niemald likes to lend money without a return. When you take out a loan, you not only repay the actual loan, but pay an expense allowance to the bank, the interest, on a monthly basis to make the money available. The longer the repayment term, the more interest you have to pay. At the moment (as of 2014) the interest rates are very favorable. As you can see in our credit comparison, interest rates are between 3 and 7 percent. This percentage refers to one year’s duration and the total loan amount. If we assume that the borrower on average has to pay 4 percent interest and would like to borrow the above loan amount of 19,200, – Euro over 4 years, this will add interest costs of 3,072, – Euro.

  • ( 19,200, – (total amount) x 0.04 (interest rate in percent per year) x 4 (duration in years) = 3,072, – Euro interest for 4 years

You must pay these interest rates in addition to the actual loan amount, so the loan amount to be paid is 19,200, – Euro + 3,072, – Euro = 22,272, – Euro. If you divide this total amount over the entire term of 48 months, our credit example shows a monthly debit of 464, – Euro instead of the initially assumed 400, – Euro. The higher the loan amount, the higher the additional interest that has to be paid. In order to have a monthly loan repayment in the amount of approximately 400, – euro, the actual loan amount must be set in our sample example clearly lower, presumably with approximately 16,000 euro.

What are the loan interest rates for me?

 How expensive will the lending rates be?

Lending is very individual and there are no fixed rates at which certain loans are granted. How much credit you can afford depends very much on how good your credit rating is. The creditworthiness (in German also creditworthiness) reflects how reliable you have paid your liabilities and whether there were already discrepancies there. A classic example of a very good credit rating are people who are always able to pay all their bills such as mobile phones, the Internet, etc. regularly and thus are not defaulting. These get better credit conditions due to the good credit rating than people who have not always met their payment obligations in the past. In the vernacular one speaks there also of a bad private credit. The worse the credit rating, the higher the risk premiums on interest rates. In the example above, you could expect 6-7 percent interest rate. With an interest rate of 7 percent instead of 4 percent, in our example the interest costs increase from 3,072 euros to 5,376 euros within the four-year term. That would be a risk premium of 2,304 euros!

In addition to the conventional installment loan, there are also special loans for real estate, which are significantly cheaper than a classic installment loan. These are partly funded by Intrasavings bank. Attention: These loans are earmarked, ie you must prove that this loan was used for the purchase or remodeling of a property.

Do I get a loan from negative private credit?

Do I get a loan from negative private credit?

With a normal bank, you will not get credit if you have a negative credit rating. For most banks, this is an absolute knockout criterion for lending. A possible alternative for people with negative private creditauskunft offer so-called personal loans. Here, the bank does not appear as a money lender, but a private person who wants to invest their money so. In the meantime, some providers such as smava.de have specialized in lending personal loans online. But you can also assume that lending from private to private will also not be cheap. After all, your counterpart gives someone money that apparently did not always fulfill his obligations in the past. A private loan is a good and often the last option that people with a negative credit rating have.

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