The installment loans in Germany are currently experiencing a high. No matter, whatever, installment loans exist in many industries. For example, a TV, a cell phone, a car or a game console is bought on installments. But how does the repayment actually go and what should you pay attention to with a installment loan?
The installment loan
The installment loan itself is a simple form of loan. You take in a certain amount of money to afford something. The span of the corresponding thing can go in many directions and have various features in their handling. So many installment loans are also taken for vacations or a new washing machine. No matter which thing you take a installment loan, you always have the same conditions and the same procedure to expect.
The structure is very simple. A person has too little money to immediately acquire a thing and be able to pay for it. Therefore, this person goes to a credit institution and requires an installment loan. There are different models. Banks always require credit bureau information and a salary statement to check their potential customers and prevent payment defaults. For banks that conduct their business over the Internet, the approach is sometimes different.
It is looser with regard to signature, credit bureau information and more. Nevertheless, banks also work online with banks. So you have to pay online for the loan also an agency fee. When it comes to money transfer, you can make money slower and more difficult – provided you have the necessary collateral, the loan is ultimately granted. If you do not have the collateral usually no credit is guaranteed. If you close an installment purchase in the business, there is usually no survey on creditworthiness. However, in the case of payment defaults, manufacturers still have the good that they can demand back. With each installment loan you have to pay interest, which will be charged on the loan amount annually
The installment loan repayment
With the installment loan repayment one can adapt different things individually. You can make the duration of the installment loan repayment different length. The maximum of most credit institutions is 84 months. But you can also set the installment in the installment loan repayment different high. The higher you set the rates, the shorter the term and the higher the interest rate. So it is recommended to install low rates for the installment loan repayment and a very long financing period.
This installment loan repayment brings but only something if you have little money available monthly. Those who have more money, choose high rates with a short term. You then have higher interest rates, but these have a lower impact on the respective sum at the end of the year and you pay less. So the installment loan repayment always compare and examine his own situation well.