Good Credit: What does that mean?
A Good loan is a loan without Financial standing – there is neither an examination of the score nor a note on the loan request. When choosing the credit provider special care is required here.
Credit without Financial standing
German credit institutions check the Financial standing score of an interested party to gauge how well the chances are that the loan will be properly repaid. The Financial standing information thus provides above all an insight into the payment behavior and not only in the ability to pay.
Financial standing is not involved in a Good loan, meaning that the bank remains in the dark about the customer’s previous payment history. However, creditworthiness can also be checked by other means by providing the bank with appropriate documentation of your income and liabilities. Any reputable credit company will always check your credit rating and never blindly lend .
Does the Financial standing really not know anything about it?
For some customers, the question arises as to whether a request for a Good loan is made to the Financial standing or whether it is requested, but no entry is made. In fact, the Financial standing gets nothing from the entire loan – unless you do not pay him back according to the contract. If there are problems with the eradication, a corresponding entry follows with the Financial standing.
What are the conditions for a Good loan?
Without the Financial standing information, the default risk for the bank is very high – this is worthwhile for the lender only at very high interest rates: The effective interest rate for a Good loan is usually always in the double digits and is often even more expensive than the current account credit line . There are usually 40 constant monthly installments to repay the loan.
Again and again there are providers who advertise with low interest rates around four percent. What sounds tempting at first turns out to be usury. The reason for this: This interest rate refers to a month and not a year – the annual percentage rate is then over 40 percent!
How do you get a Good loan?
There are a few specialized brokerage portals that have a direct line to foreign banks and routinely handle such loan requests – not for nothing, of course, but for a matching brokerage fee. These are often black sheep . Incidentally, despite the misleading name, a Good loan does not have to come from Switzerland, but can come from any EU country.