Getting a loan in Germany is not impossible, but it can be difficult to find the best one for your needs. It depends on your creditworthiness, how urgently you need the money, and which type of loan works best for you.
There are several options to choose from, including banks, lending platforms, and peer-to-peer (P2P) loans. You can also use comparison tools like Tarifcheck or Verivox to compare different loan offers.
There are a number of credit institutions that offer payday loans in Germany. These companies typically provide short-term loans that are unsecured, and which require pre-existing good credit ratings.
These loans are available on a cash basis, which means that repayments are made once the borrower’s salary is credited to their bank account. They are ideal for those who are unable to make their regular payments due to an emergency.
Loans in Germany are categorized into four types:
Installment (Ratenkredit): A loan that you pay back in fixed monthly installments, and without any collateral backing the debt.
Car loan (Autokredit): This is a secured debt, as the car is considered an asset backing the debt.
Mortgage (Hypothek, Immobilienkredit, or Baufinanzierung): This is a loan for the purpose of buying or building a house.
Each time you apply for a loan in Germany, the bank will do a background check on your financial situation, such as how much you earn per month, how many different credit cards and bank accounts you have, and if you have ever moved your registered address. This can be a factor in the bank’s decision to give you a loan and in your interest rate.
Peer-to-peer (P2P) platforms are a new alternative to traditional banks that match borrowers and lenders. They offer a wide range of loans, including mortgages, car loans, and student loans.
A P2P platform acts as an intermediary between borrowers and lenders, assessing creditworthiness and assigning an interest rate to each borrower. These rates may vary by lender, depending on their risk profile and the term of the loan.
Compared to other European countries, Germany has one of the largest peer-to-peer lending sectors, with online platforms such as Funding Circle and Ratesetter bringing borrowers and lenders together. The sector has loaned 6.4 billion pounds so far but is a much smaller player than the high-street banks.
Tarifcheck is a website that allows users to compare different offers from various providers. It can help people save money and get better deals on their monthly bills.
The website is free to use and has a mobile app. It helps to find the best deal for any kind of bill. It also includes a customer support service.
In addition, Tarifcheck also offers professional disability insurance. This is useful if someone loses their job or has an accident.
You can easily sign up for this type of insurance using the website and receive a confirmation email. The cost is about 15EUR per month.
You can also use the comparison service to check your existing internet contract and see if there is a cheaper option available. It is a good idea to switch to a new provider before the contract ends so that you can save money.
There are many online lenders to choose from, but one stands out is Verivox. The site offers a myriad of financial services, from credit cards to loans and investments. They also boast a stellar customer service team. They make it a point to provide an uncomplicated customer experience. The site offers a free credit check as well. Upon review, you’ll be assigned a dedicated loan advisor who can help steer you in the right direction. The site is also a great place to find out about other perks such as a free car rental deal from Uber. Using the site’s mobile app is a breeze.