The choice of loans is huge these days. Keeping an accurate overview is often very difficult. New credit providers are constantly being added and advertise with attractive interest rates, low costs and an immediate commitment. Before someone takes out a loan, however, it should be clarified whether they can generally pay the monthly installments reliably and on time. In addition, the creditworthiness plays a very important role in the granting of loans at very many banks. However, since the loan is mostly needed to cover the overdraft facility or to pay debts, the creditworthiness of many applicants is not very good.
For precisely this reason, there are also loans that are granted regardless of creditworthiness. The selection of financial institutions is not very diverse here and finding a suitable lender can prove to be difficult. A credit-independent loan is also referred to as a fixed-price loan by the banks.
What is creditworthiness?
The creditworthiness indicates the creditworthiness of the applicant. It shows the likelihood that the borrower can make payments. The poorer the credit rating, the more likely banks are to face default. For this reason, banks charge significantly higher interest rates for a credit-dependent loan and thus “punish” the borrower.
It is different with a credit-independent loan. Here the interest rate remains the same for all borrowers. The conditions of the loan can of course still have an impact on the interest and thus the costs and fees incurred.
The credit-independent loan
If interest in such a loan is shown, it does not necessarily mean that the borrower is also granted this loan despite poor creditworthiness. Of course, the banks also check the payment behavior and the financial situation of the applicant for a credit-independent loan. If the creditworthiness is simply too bad and not viable for a loan, this loan application is also rejected by the banks.
A very important criterion for a positive commitment is certainly a monthly and regulated fixed income. Even if the income is relatively low, it has a very positive influence on lending. Borrowers who claim to have good credit ratings are not rewarded by the banks with a low interest rate.
The loan application
Finding the best deal is relatively difficult. Of course, it depends on different factors. How high should the loan amount be, which monthly installments are desired, duration and of course the purpose of use can also play a role. It is therefore advisable to obtain offers from different banks and financial institutions and compare them with one another. However, experience has shown that direct banks often offer a very good offer for customers.
Another advantage is that the applicant has a much shorter processing time and should the loan application be approved, he will have the money available the next day. In special cases, house banks can respond better to the personal situation (customer has been known for a long time), but the long processing time simply discourages many borrowers. So if you are interested in a credit-independent loan, you should look very closely at the conditions of the credit institutions and compare them.