In order to get a cheap and credit-independent installment loan, a lot of information is necessary. This can be a longer search, since most banks and credit institutions calculate the installment credit by credit rating. The annual percentage rate is often very expensive if the borrower’s credit rating is low. Therefore, a credit rating-independent installment loan proves to be beneficial.
A credit rating-independent installment loan and its benefits
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The bar for a 1A credit rating is very high and depends on many factors such as additional credit, income and collateral. Therefore, installment loans that are dependent on the credit rating, often make less attractive and mean high costs by raising the APR. A credit rating-independent installment loan is often set higher in the APR and at first glance appears less attractive.
The banks offer different models, which differ enormously in the annual percentage rate of credit-independent installment credit. The terms are between 5.5% and 5.98% with a loan amount of 5000 euros and a repayment modality of 48 months. However, the advantage is that the annual percentage rate of charge will not be raised once the proof of income has been received by the credit institution. So you profit from the fact that the interest rate remains the same and no increase can take place during the term. Thus, a credit rating-independent installment loan proves to be very favorable for people with low income and a low credit rating.
Which conditions are necessary
Not only large banks and credit institutions offer cheap and credit-independent installment loans. Also on the Internet there are a large number of offers that do not require a high quality credit rating. In order to benefit from this credit model, you must have a permanent employment and a regular salary. For unemployed and entrepreneurs, as well as self-employed and freelancers, this credit model does not apply. Have you decided that a credit rating-independent installment loan in your case is an advantage, you can compare the offers on the Internet and find out about specific conditions and restrictions of the respective provider. There are providers who want to have a certain minimum income demonstrated, while other providers, the proof of income, no matter how high, are sufficient. The variations in the APR are also useful for a direct comparison of different lenders.
A credit rating-independent installment loan allows low-income workers to take out a loan. The calculation of monthly installments can easily be done on the Internet, as the interest rate remains stable and is not subject to change throughout the term. This gives you the advantage that you are informed about the exact installment amount of the repayment already prior to the application and can plan.