What is a credit rating-independent installment loan? What is the difference to other loans, who should use it? When is it better to rely on one’s own credit rating? These questions are answered by the article and explain in simple words what really matters.
A credit rating-independent installment loan – what exactly is it?
The term “credit independent loan” does not initially mean that the applicant does not have to have a credit rating. Creditworthiness is the basic requirement of every credit decision. Who has a negative entry in the Private credit, does not get this credit. Likewise, the basic ability to pay is a prerequisite for approval.
A credit rating-independent installment loan is a normal installment loan. He will appear in the search results of the credit comparisons ever further back. The reason for this is that the credit rating for the approved loan has no effect on the interest rate. The interest shown is fixed-rate interest and thus slightly higher. Extremely low interest rates, which are granted for a particularly good credit rating, which influence the display results. So it comes to this sorting.
The difference between the loan offers.
The usual form of the installment loan is dependent on credit. Simply put, the creditworthiness of a person is determined by his or her job, age, payment history and income. For creditworthiness-dependent loans, the credit rating is assessed individually. The valuation result is the decisive factor for the interest rate offer. For example, one borrower from the same provider has particularly favorable interest rates, another has to pay more interest for the same loan amount.
A credit rating-independent installment loan offers the standard rate of interest for all borrowers. These loans are offered primarily as a small loan and as a trade credit. The sums are usually limited. For example, the simplified credit check procedure is often appropriate. The credit rating is then not determined individually. In this procedure only the basic creditworthiness is checked – a sufficient income and the Private credit Only with larger loan sums the normal examination of the borrower takes place.
For whom are fixed-price interest and for whom not worthwhile?
For small loan amounts nobody has to look so closely at the interest rates. The department store loan with a fixed interest rate is therefore an adequate credit option for everyone. It is different with a bit higher sums. In this case, a credit rating-independent installment loan can become more expensive for people with particularly good credit ratings. If you have a very good income, for example judges, you should rather trust your credit rating.
Virtually no disadvantages exist for the majority of citizens. Your credit rating is in the midfield. There is virtually no savings potential in interest rates. The advantages come from a credit rating-independent installment loan for all borrowers whose credit rating is lower. As a profession, small entrepreneurs would be an example, but even lower-income earners benefit from the fixed-rate interest rate.