Bank credit: online with favorable conditions

Good Finance Bank is one of the few remaining major banks in Germany. It was founded in 1870. The head office is in Frankfurt / Main. The bank operates internationally with branches in major stock exchanges such as New York, London, Singapore, and Sydney.

All financial services of a universal bank with a focus on investment banking are offered. E-Bank, which has been a subsidiary of Good Finance Bank since 2006, is particularly specialized in private customer business.

It is interesting to divide the banking offer by customer groups: private customers, wealthy customers, business customers, corporate customers and customers from the public sector.

Good Finance Bank is not making good headlines

Good Finance Bank is not making good headlines

She recently failed the second part of a stress test by the FED, the American central bank, because she has neither the necessary internal controls nor effective risk management for a simulated emergency.

The Fed spoke of “widespread, significant shortcomings” in capital planning. The bank is expected to be able to correct the criticized organizational deficiencies. Regardless of the problems the bank is currently facing, we want to deal with the question of how to assess the bank’s loan offering.

Good Finance Bank is a branch bank, some of whose banking products can be concluded online. For example, account openings and credit card applications are possible online as well as applications for personal loans.

A visit to the branch is required for other financial services.

The bank makes it possible to make appointments via the website, to obtain information on the individual banking products and to prepare the conversation with the clerk, among other things with the help of financing computers.

We want to take a closer look at the product page for Good Credit

We want to take a closer look at the product page for Good Credit

Customers are offered two options: the loan can be applied online or the customer can request an appointment with personal advice at a branch close to where they live. The necessary tools are available to make an appointment. It is also possible to contact us by email. Customers can receive the answer by email or have them call them back.

Links to both options are clearly visible above the break. If the customer clicks on “Apply online”, they will be forwarded directly to the credit request. It is better to first scroll down and find out about the conditions in detail. Various links lead to information about the loan terms, the application process and a detailed FAQ area.

If you make the effort to click on all tabs, you will receive all the essential information about the loan offer in a clearly arranged manner. Customers can also use the Good Finance Bank loan calculator to estimate the monthly debits of the desired personal loan.

It should be emphasized positively that the loan calculator does not assume the cheapest effective interest rate, but the interest rate in the two-thirds example. This gives customers a relatively realistic estimate.

The layout of the product page is limited to the essentials and is not, as with some other websites, overloaded. Clear navigation prompts customers to obtain comprehensive information about the loan offer.

The information is presented fairly and understandably. Nowhere does the impression arise that customers are urged to take out a loan.

The loan offer from Good Finance Bank

The loan offer from Good Finance Bank

Apart from credit cards, personal loans can be taken out online alone. For all other credit products, an appointment with a branch is required.

In addition to consumer credit, the bank offers a private loan for university graduates, a student loan and practically all possible forms of real estate financing. The private loan for university graduates can also be used to refinance services.

Loan amounts of up to USD 50,000 are possible with terms of up to 120 months. The interest rate depends on creditworthiness.

Proof of income for loans: What banks want to see

Whether on the Internet or at a branch bank, every loan application must be accompanied by documents on the applicant’s income and, if applicable, assets.

Proof of income from lending serves two main purposes:

With their help, possible loan collateral should be determined. And – more importantly – proof of income serves as evidence of the extent of economic resilience.

Credit scores from the various credit bureaus (Credit bureau and others) are used to estimate the reliability with which a credit customer will meet its obligations.

Proof of income, on the other hand, shows whether a borrower is financially able to service a loan of a certain amount, with a certain term and with a certain effective annual interest rate.

Banks use both elements of the credit check to create an individual score that is compared with the lending guidelines.

If the internal bank score is sufficient according to the lending guidelines, the loan customer receives the loan applied for. In the opposite case, the loan is rejected.

Submitting comprehensive, meaningful proof of income together with the loan application is therefore of crucial importance for lending.

During the loan application process, banks state which proof of income is required for lending. It is important not to forget any type of income in the credit request and to prove each type of income.

Proof of income from employment

Proof of income from employment

Employees, including civil servants, are asked to provide copies of their payslips.

Most banks are content with payslips for the past two or three months. In addition, banks often expect copies of ongoing bank statements.

The period is different. It is often the past four weeks. Sometimes even the bank statements of the past few months are requested.

Other banks do without bank statements.

Banks that issue fully digitized loans, on the other hand, forego pay slips and only use bank statements as part of a so-called account view to check creditworthiness.

To do this, the applicant must provide the credit bank with the access data to his checking account via a secure connection.

However, special certificates of earnings are rarely requested.

If this happens, the borrower must contact his employer. The employer is obliged to issue such certificates of earnings.

Pay slips, bank statements and, where applicable, proof of earnings serve once as proof of the amount of current income and that of an employment relationship.

On the other hand, banks get insight into incoming and outgoing payments. Finally, banks can see whether there are attachments or assignments.

However, employment contracts to prove the existence of an employment relationship are only very rarely required.

Hardly any additional information can be derived from employment contracts. In particular, the actual earnings cannot be derived from the content of the employment contracts. Allowances, other salary components and tax bracket are not part of employment contracts.

Banks require pensioners to receive the latest pension notices.

Officials are asked to provide copies of the latest salary notices when granting a loan.

Proof of income from a loan without Credit bureau

Proof of income from a loan without Credit bureau

Loans without Credit bureau are only granted to employees or civil servants.

Since the amount of the attachable income plays a special role with this type of credit because there is no Credit bureau information, strict requirements for the proof of income apply.

Sigma Bank from Liechtenstein is the only bank that grants loans without Credit bureau in Germany. Regardless of whether a loan application is made directly to the bank or through a credit intermediary, the following documents are required:

The last two original pay slips.

The original bank statements matching the pay slips or by uploading documents.

Account statements and wages received must be visible on the statements.

Proof of income for freelancers and traders

Proof of income for freelancers and traders

Borrowing means more work for the self-employed than for employees and civil servants.

While future monthly earnings for employees are relatively easy to predict, the self-employed often do not have regular monthly earnings.

Banks therefore need more material to be able to assess the financial resilience of the self-employed.

The idea behind it: The risk of credit default can only be limited by a precise analysis of the financial situation in the past and in the present. The more economically stable the company was over a longer period of time, the more likely it will be in the future.

That is why banks often require a mountain of documents. Credit institutions are particularly thorough with traders because this professional group tends to assume a weaker credit rating.

Self-employed applicants must demonstrate independence for several years. Two to five years are usual, sometimes even seven years are required.

Proof of social benefits

Proof of social benefits

Beneficiaries of social benefits alone do not receive loans. However, some banks still allow a loan application if a solvent co-signer is made who has income from self-employed or dependent work.

If several people apply for a loan, each person must provide proof of income for themselves. If an applicant receives state benefits, nothing else applies.

Anyone who receives unemployment benefit, sickness benefit, parental benefit or other social benefits should therefore provide the relevant evidence (notices).

Proof of other income

Proof of other income

Occasionally, loan applications are rejected because applicants have forgotten to report additional income.

Income does not have to come exclusively from self-employment or employment.

Relevant income also includes, for example, income from renting and leasing, interest income from investments or income from self-employed or dependent employment.

Getting child benefit can also play a role in lending.

Additional sources of income as well as the main income have to be proven.

This is done, for example, by submitting notices, custody account statements, account statements with the corresponding incoming payments and rental or lease contracts.

Additional income from dependent work can be proven through pay slips.

Name collateral

Name collateral

Loan guarantees play a major role not only for the self-employed. They can also make borrowing easier for employees and pensioners.

Direct banks largely grant loans automatically, with little regard for special circumstances among individual borrowers.

Therefore, apart from salary assignments and co-signing of the loan agreement, no other collateral is often accepted.

However, the situation is different for branch banks. House banks are more willing to accept additional collateral to improve creditworthiness requirements.

However, not every asset comes into consideration. The house bank will also be very reserved when it comes to stamp collections, collections of modern art or antiques.

When it comes to collateral, two points are particularly important for banks:

The value of the asset must be easy to determine and it must be possible to realize it in the event of a loan default without difficulty.

The following are the main types of loan collateral: securities holdings, all kinds of savings, capital life insurance and private pension insurance, real estate and motor vehicles.

Credit-related interest rate vs. unit rate

It depends on the interest rate. Borrowers first look at the interest information on a loan offer. Rightly so, because the interest rate is a decisive indicator of how cheap a loan is for the consumer. But which interest rates are really meaningful?

There is information about whether the interest rate depends on the creditworthiness or whether the installment loan is granted at a standard interest rate.

Consumers very often find this information in a note marked with an asterisk somewhere below in the credit offer. The borrowing rate is also differentiated from the effective interest rate, and finally, there are representative examples. Here it is explained which interest rates are important and which installment loans are actually consumer-friendly:

Loans with interest rates dependent on creditworthiness or with uniform interest rates independent of creditworthiness.

What does credit-related interest rate mean?

What does credit-related interest rate mean?

The bank’s interest offers are not only dependent on the amount of the loan and the term. They also depend largely on the individual creditworthiness of the customer.

Each credit check is carried out in two stages:

Firstly, by obtaining Credit Checker information or information from other credit agencies such as Good Credit.

This information contains two different pieces of information. First of all, the bank learns whether its customer has so far properly fulfilled all liabilities or whether there are negative Credit Checker entries. If there are no negative Credit Checker entries, a Credit Checker provides a score calculated according to certain standards.

The score measures the likelihood that the borrower will meet his loan obligations.

For this purpose, he is assigned to groups of people according to certain criteria. It is not the concrete reliability of the customer that is measured, but the abstract reliability of the group of people in which the customer is classified.

On the other hand, the bank measures the creditworthiness of its customers through its own surveys. This includes information about the civil status, the place of residence and above all about the income and financial situation.

The results of both exams are summarized in a kind of overall grade. How the bank evaluates individual components and how strictly the creditworthiness criteria are handled is practically treated as banking secrecy.

The criteria vary from bank to bank.

The bank uses the credit rating to assess the credit default risk.

The higher this risk, the more the bank’s earnings are questioned.

In order to reduce the risk and thus secure the profit or at least exclude losses, higher interest rates are used if the creditworthiness is poor.

In other words, customers with a good credit rating can expect low-interest rates.

With increasing creditworthiness cuts, interest rates continue to rise until the credit rating is no longer sufficient in the bank’s opinion for lending.

Unit rates

If the bank offers uniform interest rates independent of creditworthiness, all customers pay the same interest for a loan with the same term and the same loan amount.

However, there is a limit credit rating, below which no loans are granted at all.

A simplified example should clarify this: The bank assesses the creditworthiness based solely on the information about the bank score.

According to their guidelines, loans should only be granted up to a score of level D, which means a default risk of 3.13%.

All customers receive the same interest rate, even if they have an A rating. Customers with a rating level lower than D do not receive a loan.

Loans with standard interest rates are very often only given to customers with above-average or good credit ratings.

Other consumers do not enjoy the interest rates that at first glance seem cheap.

The stricter the marginal credit rating, the better the interest rates and the lower the chance for consumers to get a cheap loan with a single interest rate.

Some banks scale the uniform interest rates either by terms or by loan amounts, sometimes even according to both criteria.

The unit interest rates are then different and you can usually find them in an interesting table.

Credit-related or uniform interest rates: Which interest rate is cheaper?

Credit-related or uniform interest rates: Which interest rate is cheaper?

Standard interest rates that are independent of creditworthiness are often presented as particularly consumer-friendly. Consumer advice centers are sometimes of the same opinion.

In fact, unit interest rates are somewhat transparent. When making an application, customers do not know whether they are getting a loan at all.

But if the loan is granted, they know in advance what the interest rate will be.

If loans with interest rates dependent on creditworthiness are offered, the customer initially remains unclear about the actual conditions.

Only when there is a concrete loan offer does he know how high the interest is. For this reason, interest rates dependent on creditworthiness appear less transparent.

It is also difficult to compare such loans in advance.

Additional opacity arises from playing with interest rates. Loan providers advertise with a minimum interest rate and a maximum interest rate.

So-called, but worthless, credit calculators are often offered, with the help of which customers can estimate the monthly installments. These loan calculators usually always use the minimum interest rate.

The minimum interest rates are unrealistic. A maximum of 5% of customers with the very best creditworthiness can hope to receive a loan at the minimum interest rate. Anyone who hopes for such input interest rates will be regularly disappointed.

Flat rates are problematic in another way. The credit default risk is a cost factor that must be taken into account when calculating the right interest rate.

If banks offer loans at standard interest rates, they do a kind of mixed calculation. The result is that customers with very good credit ratings have to pay higher interest rates than would be appropriate given their credit rating.

These customer groups are therefore disadvantaged.

As a rule, only customers with poor creditworthiness benefit, but whose creditworthiness is still sufficient for lending.

This is often the customer group with the worst possible creditworthiness.

Some banks also use the standard interest rate as a lure for loans with higher, then credit-dependent, interest.

Although an applicant does not have the required creditworthiness for the unit interest rate, he still receives a loan offer from the bank, but with higher interest rates.

If you weigh the advantages and disadvantages of both types of interest against each other, they are actually in balance.

Real loan comparison is only possible on the basis of specific loan offers. This is the only way that borrowers with loans with a single interest rate can determine whether they have a credit opportunity at all.

In the case of loans with interest rates dependent on creditworthiness, specific loan inquiries are also required to determine the actual effective interest rate.

Truck pawnshop: borrow money cheaply and remain financially independent

In a truck pawnshop, all those truck owners secure short-term liquidity who fail at their house bank. More and more banks are cold-heartedly rejecting customer inquiries or simply offering loans with shamefully high-interest rates. Many consumers then see no other option than to bridge their financial bottlenecks by pledging their trucks.

In the meantime, the truck pawnshop is more than just an alternative to a bank’s traditional installment loan. If you, as an entrepreneur, mortgage your truck, you will receive the money in cash in the form of an instant loan. In addition to working as a car pawnshop, Good Credit has established itself as a reliable and professional truck pawn shop.

Loaning trucks in the pawnshop: at which locations is this possible?

Loaning trucks in the pawnshop: at which locations is this possible?

You can find our truck pawnshop at a total of 6 locations in Germany. Good Credit is active both in Bavaria and in the Rhine-Main area, but of course you can also contact us from another region of the Federal Republic. We will surely find a solution. In Bavaria we are there for you in the cities of Rosenheim and Munich, while in Rhineland-Palatinate and Hesse you can mortgage your truck in our pawnshop in the following cities:

  • Mainz
  • Wiesbaden
  • Frankfurt am Main
  • Darmstadt

Please contact our truck pawnshop if possible at the location with the shortest distance to your own location.

How long can I mortgage my truck in the pawnshop?

How long can I mortgage my truck in the pawnshop?

In our truck pawnshop, the mortgage loan agreement has a regular term of 3 months. This is how long you pawn your truck in order to have your instant loan paid out in cash. If you wish to extend this regular term, this is possible for a maximum of 3 additional months.

However, you must pay all the costs that have been incurred up to that point. Once this has been done, we will be happy to extend the mortgage loan agreement and thus the truck pawnshop. Of course, you can also trigger your truck early. All you need to do is call us and your truck will be ready for collection the next day. A complete sale is of course also possible.

Truck pawnshop Good Credit: how does it work?

Truck pawnshop Good Credit: how does it work?

If you would like to loan your truck at the pawnshop, please let us know the most important vehicle data. These include:

  • vehicle type
  • mileage
  • Age
  • Any extras installed afterwards

Based on your information, we calculate the truck deposit value, which in turn is important for the amount of your deposit loan. If you like our offer, we will arrange an appointment on which the vehicle will be handed over.

Please do not forget the keys and important documents such as the cancellation certificate or the vehicle registration document. You identify yourself, everyone signs the mortgage loan agreement and Good Credit pays your instant loan in cash to your hand.

Lending a car to a pawnshop in a truck: is that safe?

At Good Credit, we take safety very seriously at all times. If you loan your truck in our pawnshop, we guarantee you absolutely safe storage. We store all vehicles in an insured building so that nothing happens to your truck.

Of course, we also count your own for security. Trust in our word of honor that we will not pass your data on to anyone and that we will never work with Credit Checker. Discreet as we are, you receive individual appointments from us and your reasons for the truck pawn shop remain entirely with you.

What costs and fees are waiting in the truck pawnshop?

What costs and fees are waiting in the truck pawnshop?

If you loan your truck in the pawnshop Good Credit, you will be charged the usual costs and fees. In total there are 3 pillars:

  • loan fees
  • interest
  • demurrage

The parking fee for us always depends on the vehicle to be loaned. The interest and fees are based on the amount of the loan, whereby we have fixed percentages and comply with the legal requirements. Our costs and fees are fair and transparent.

Pawn trucks in the pawnshop: what are the advantages?

Good Credit is your personal truck pawnshop with absolute top service. You can rely on us to regularly check your truck while it is standing in our insured building. For example, let’s look at air pressure. You also benefit from our enormous experience.

Because we have been active in the pawn and automotive industry for several decades and as a member of the German pawn credit industry we stand for seriousness. You also lend not only trucks, but also cars, motorbikes, campers, vintage cars and boats. Secure short-term liquidity now by loaning your truck from Good Credit!

7500 USD loan without Credit Bureau: serious and cheap.

 

Take up 7,500 USD without Credit Bureau – two ways lead to the goal.

Take up 7,500 USD without Credit Bureau - two ways lead to the goal.

First of all, there is the option of using a credit broker in Germany who can help you obtain the Credit Bureau-free loan.

The most famous address is certainly Cream bank. The loan broker from Speyer carries out extensive advertising in the media and claims to be the market leader in arranging loans without Credit Bureau. Good Finance is another financial service provider that we can recommend. The credit broker is based in Halle / Saale.

This loan broker is less well known, perhaps because the company primarily operates online and does not use expensive advertising. However, the credit intermediary is praised by its customers for its particularly good advisory services. Good Finance is all about loans. The financial service provider expressly refrains from providing unnecessary insurance or other financial products.

Both credit brokers are reputable. They submit loan offers to their customers without incurring upfront costs. The offers are non-binding and do not oblige customers to do anything.

In addition to commissioning a credit broker, you can contact the lending bank directly and apply for a 7,500 USD loan without Credit Bureau online. Good Finance from Liechtenstein is the only credit institution that sells loans without Credit Bureau in Germany. The credit request is also free and non-binding. We have provided you with additional information on Good Finance and Credit Bureau-free loans in general in separate articles.

Loan application to intermediaries or to the bank directly?

Loan application to intermediaries or to the bank directly?

The conditions for a 7,500 USD loan without Credit Bureau are the same everywhere. The Agree Bank does not grant credit intermediaries special conditions.

Which financial service provider is best suited to apply for a 7,500 USD loan without Credit Bureau? The answer to this question depends on what your personal situation is and why the loan should be free of Credit Bureau.

Many credit customers who are looking for a loan without Credit Bureau online have negative entries that come from the past. In the meantime, however, they have recovered economically enough that they can afford a loan. You have good or average regular income.

But if you want to apply for a loan, then the past catches up with you. Negative features burden the credit score even if they have been settled but not yet deleted. Many banks categorically deny any lending in such cases.

If the negative characteristics are due to impairments in the performance of a previous loan, no bank will be willing to lend at all as long as the entry in the Credit Bureau file is visible. That is why a loan without Credit Bureau appears to be the only way out.

But there are other reasons for a loan without Credit Bureau. You have not had any Credit Bureau problems at all, but simply do not want a small loan to appear in your Credit Bureau file.

This can make sense if you are planning a larger financing project. Although the Credit Bureau-free credit appears in your documents (account statements, possibly pay slips), the bank score remains unaffected. This may result in better interest rates for financing.

Example: You are planning to buy a condominium, but do not have any noteworthy own funds. With a 7,500 USD loan without Credit Bureau you can at least finance the ancillary costs, i.e. use the amount as own funds. The consequence may be that financing becomes possible in the first place or that the overall interest burden is reduced.

If you are planning to take out a Credit Bureau-free loan from the outset, we recommend that you apply for a loan directly from the bank. If you are not sure which loan solution is right for you and whether you can fill out Lite Bank’s somewhat complicated loan request properly, then you should use the help of a credit broker. Loan brokers can sometimes get relatively low credit customers with normal loans that are cheaper than Credit Bureau-free loans.

However, you have to expect an additional commission. The route through a credit broker is primarily useful for people who do not have a particularly good credit rating.

7500 USD loan without Credit Bureau: the conditions

7500 Euro loan without Credit Bureau: the conditions

Credit Bureau-free loans are offered on fixed terms that are not negotiable. This leads to a high level of transparency, but also to inflexibility.

The 7500 USD loan without Credit Bureau has the following conditions:

Net loan amount 7500 USD
interest expense 1512 USD
total amount 9012 USD
Annual borrowing rate 10.58%
Effective interest rate 11.11%

The total amount will be paid in 40 equal monthly installments of USD 225.30. Payment begins in the month after next after the contract is signed. This can extend the term to 42 months. An early repayment of partial amounts or the entire remaining amount is possible at any time without payment of a prepayment penalty.

The Good Finance standard information for consumer loans states:

Follow-up loans and credit increases are possible. The remaining amount may not exceed 3500 USD.

Are you planning a loan without Credit Bureau, but only want to take out 7,000 USD or 6,000 USD?  Formally, this is not possible. Credit Bureau-free loans are only available in amounts of 3500 USD, 5000 USD or 7500 USD. No other loan amounts are possible.

However, you may be able to use a trick. They benefit from the possibility of free special repayments. For example, take out a $ 7,500 loan without Credit Bureau and pay back the amount you don’t need, for example $ 500 if you only need $ 7,000.

However, this little trick is not in vain. Until repayment, you must pay interest on the excessive, unnecessary loan amount. In addition, possible commissions are due on the entire loan amount. However, this method is still cheaper than interest payments on the total amount not required over the entire term.

Allocation requirements for the 7,500 USD loan without Credit Bureau

Allocation requirements for the 7,500 euro loan without Credit Bureau

The lending requirements largely correspond to those of conventional installment loans. However, there are some peculiarities that are in the nature of Credit Bureau-free loans. Self-employed people do not receive loans without Credit Bureau.

Without Credit Bureau does not mean without creditworthiness. Potential credit default risks from the loss of Credit Bureau information are compensated for by strict requirements on the economic situation of the applicant.

Applicants must have a good to average income and a secure job.  The required monthly net income is shown in the following table (as of August 2019):

Tax classes 1, 2, 4 and 5 Tax class 3
Children subject to maintenance net income Children subject to maintenance net income
No children 1,860 USD No children 2,180 USD
1 child 2,180 USD 1 child 2,600 USD
2 children 2,600 USD 2 children 3,010 USD
3 children 3,010 USD 3 children 3,570 USD
4 children 3,570 USD 4 children

 In addition to the clearly defined net income, the following requirements must be met: A residence in Germany. Applicants must be at least 18 years old and must not be older than 62 years.

A current account with a Agree Bank (cash payments are no longer possible). A permanent employment relationship as an employee, worker or civil servant. The employment relationship must have existed for 48 months. In the case of follow-up loans or topping up loans, the duration of employment is twelve months.

The applicant is healthy and fully capable of working. No attachments or assignments. No intended or requested bankruptcy proceedings. No entries in official registers. Neither affidavit nor warrant.

7500 USD despite Credit Bureau instead of without Credit Bureau?

7500 USD despite Credit Bureau instead of without Credit Bureau?

A loan without Credit Bureau is often sought, although a normal installment loan would still be possible despite some creditworthiness problems.

A below-average Credit Bureau score or minor or completed negative features do not necessarily have to rule out lending in every case. If you are not fixed on a Credit Bureau-free loan from the outset, you should always apply for a normal loan first. This applies even if the loan is rejected by a branch bank or even by the house bank.

Credit intermediaries can often help. Some partner banks, mostly not so well-known credit institutions, work with relaxed lending guidelines. Of course, loans have their price in difficult cases.

For example, request a normal loan from Good Finance. This credit broker processes all inquiries manually and attaches particular importance to appropriate and fair advice to customers. Together with Good Finance, you have a good chance of finding a suitable loan with and without Credit Bureau. You can also apply to one of the well-known credit comparison portals.

The Fine Bank loan calculator also works with banks and financial service providers (P2P portals) who grant loans with below-average credit ratings. However, inquiries are largely processed automatically here.

Unlike credit intermediaries, Fine Bank cannot apply for loans without Credit Bureau. Normal installment loans with negative Credit Bureau do not always have to be cheaper than 7,500 USD without Credit Bureau.

Credit online and credit cards

Good Finance is a smaller bank with its headquarters in Hamburg and a few branches scattered across Germany, including Berlin. The financial service provider was founded in 1969 to handle the merchandise credit business of Otto Shipping. In 1976, the bank, originally designed as an installment bank, received a full bank license.

Good Finance primarily offers credit cards. In addition, she advertises an installment loan online in cooperation with Good Credit Bank and offers an owner loan.

In addition to credit products, savings products (overnight money and savings certificates) are also offered, which can be requested online or “managed” online.

Another line of business is the financing of goods

bank

The homepage is dominated by the current online main product, the Visa credit card. Finally, the navigation also takes customers to the two loan offers, the direct loan, and the owner loan.

The individual product pages offer a quick overview of the conditions. If necessary, the information according to the consumer credit directive is listed relatively clearly.

Direct contact is possible by phone (via hotlines), by email or in a branch. The website has a FAQ section arranged by-product, in which some essential questions are addressed. As far as the loans offered are concerned, the conditions for granting are detailed.

Otherwise, the information is somewhat superficial. It is therefore advisable to use the callback service or the hotline to obtain more detailed information.

Good Finance loans

Good Finance loans

There are two loan offers on the bank’s website: the direct loan, a conventional installment loan and the owner loan, a loan for property owners.

The bank offers its advertised credit products and also dealer loans through sales partners. Sales partners are provided with a number of tools.

In this way, they can offer their customers a preliminary, immediate decision. For this purpose, a preliminary credit check is carried out according to the so-called traffic light principle based on a Credit Checker request and a bank’s own scoring system.

installment loan

The installment loan is not a separate loan offer. Good Finance apparently brokered a loan product from Good Credit Bank. Visitors are redirected to the website of this bank in order to get the loan application.

Loans between USD 2,500 and USD 50,000 are brokered. The terms are between 12 installments and 84 installments.

Good Credit Bank offers a debt rescheduling service. Loans without Credit Checker will not be arranged. In addition, there can be no negative characteristics at the Credit Checker or Info score.

Self-employed and freelancers are not eligible to apply. All other requirements are described in our article about the Good Credit.

Submitting a loan application via the Good Finance website is actually superfluous. It seems to make more sense to contact the Good Credit directly or, even better, to use a credit comparison that contains offers from the Good Credit Bank.

owner loans

The owner loan is intended for apartment owners. Home loans are also known as home loans.

Loan amounts between USD 5,000 and USD 60,000 are offered. The long terms of up to 180 months are interesting. The loan is not necessarily earmarked for residential investments.

It can also be used as a general-purpose loan for any other purpose. In addition to the usual purchases, larger debt restructuring campaigns are particularly important.

The loan is offered with a 5-year and a 10-year fixed interest rate

The loan is offered with a 5-year and a 10-year fixed interest rate

In addition to the fixed interest rate, the extent to which the loan should not only be used for residential purposes but also for consumption purposes is obviously decisive for the interest rate. If the “consumer debt rescheduling” is higher than 50%, this has a negative effect on the annual percentage rate.

Early repayment of the loan is obviously only possible after a special agreement and against the prepayment penalty.

Suspension of repayment is not expressly provided for, but it can perhaps be agreed afterward in the event of financial bottlenecks. Credit increases are not excluded after prior contact. However, another credit check will very likely be carried out.

No further information is given on the website regarding the application requirements. The owner loan cannot be applied for online. A prerequisite is contacting us by telephone or in writing.

How much credit do I get at 1300 net?

Getting a loan with 1300 USD or 1400 USD net per month is not necessarily a sure-fire success.

Of course, you opened this article to find out what your chances of getting a loan are and what maximum loan amount you can count on.

Whether and how much credit banks lend depends on a number of factors:

The free disposable income of the applicant, how many people the borrower is dependent on and finally how the banks carry out the credit check in individual cases.

Banks rate these and other criteria differently. And no bank publishes its lending guidelines.

Therefore, it cannot be predicted with certainty what the credit options ultimately look like with a salary of 1300 to 1400 net. Certainty only brings a specific loan request.

However, an estimate of the maximum loan amount is possible and can serve as a good preparation for the loan request and the sometimes subsequent negotiations.

Budget bill and disposable income

Budget bill and disposable income

This chapter deals with the question of how much credit you can afford at around 1300 USD net per month.

It’s more a question you should ask yourself. Of course, the bank is also interested in your economic performance before granting a loan.

But the criteria for the assessment need not be the same.

The freely disposable income with which the loan rate can be shouldered is determined by a household bill.

All income and expenses are recorded and compared on a monthly basis. If no budget book is kept (who does it), an estimate as accurate as possible is sufficient.

Free household calculators are available on the Internet like sand by the sea. We prefer the calculator with the Responsibility website.

Some expenses do not occur monthly, but in longer time intervals, for example quarterly or annually. You have to convert this expenditure to the month.

If there is a surplus of income over expenditure, you have freely disposable income with which, from an economic point of view, you can pay the monthly installment for the loan.

Another method is to estimate the possible monthly rate using a rule of thumb. For example, free installment loans are often based on 20% of the monthly net income.

At 1300 USD net monthly this is 260 USD and at 1400 USD monthly 280 USD.

However, your budget bill using the suggested form and the rest of this article will show you that these lump sums are usually too high.

The stumbling block: the attachable income

The stumbling block: the attachable income

In contrast to earmarked loans, the usual installment loans have no further collateral apart from the salary assignment.

Even if you offer additional collateral, these offers are often not even accepted. The reason lies in the effort that additional collateral brings for the credit institution.

The proportion of income that can be seized depends on the number of maintenance obligations that you have to fulfill. As a rule, this concerns children who are subject to maintenance.

A screenshot from the attachment table shows at a glance the attachable share of the salary.

At $ 1300 to $ 1400 net per month, salary shares can only be attached if no maintenance obligations are to be met.

Banks do not necessarily expect the agreed monthly loan installment to be fully covered by the attachable salary component.

It is more problematic if the total monthly income is below the absolute garnishment exemption limit of approximately 1180.

Even then, some banks still agree to issue smaller loans.

As a borrower, however, consider the garnishment table with the garnishment-free wage components.

Legislators have declared part of the wage to be attachable so that consumers receive a minimum amount to support themselves.

If you use income that is supposed to secure your basic needs to settle credit installments, you can get into a debt trap.

So be careful with borrowing if the monthly installments cannot be largely paid off from the wage shares subject to the attachment.

What loan amounts are realistic?

What loan amounts are realistic?

The amount of credit that can be calculated without taking individual credit rating characteristics into account depends on three requirements:

  • The selected term.
  • The free income available for the monthly payment.
  • The effective annual interest rates.

For the following example calculations, we assume that the applicant has no maintenance obligations.

If the income is 1300 USD per month, we assume a rate of 120 USD.

If the income is 1400 USD per month, the possible credit rate should be 190 USD.

We use a few tools to carry out the sample calculations quickly.

How much credit does the bank give?

How much credit does the bank give?

The amount of credit actually granted by a bank can vary significantly from the sample calculations. There are several reasons for this.

The interest rates depend not only on the term, but also on the creditworthiness, which is determined according to the bank’s lending guidelines.

Interest rates can therefore be lower than the average interest rates or even higher.

The effective annual interest rates always depend on the credit rating of the credit customer.

This also applies if fixed interest is offered, i.e. interest independent of creditworthiness. In these cases there is a limit credit rating.

The advertised interest rate is only offered if a certain credit rating level, often defined by a score, is not undershot.

If the credit rating level of the relevant bank falls below the level, the applicant either receives no credit from the bank at all or higher interest rates are charged.

The credit check does not only take into account freely disposable income. The credit default risk is of great importance.

In order to be able to assess this risk, banks obtain information from various credit bureaus.

The most famous credit agency in Germany is Credit bureau. Credit bureau determines various score values ​​with which the credit default risk is limited.

In addition, personal relationships such as civil status and job security also play a role.

It also depends on which loan option is being applied for. Different guidelines apply to real estate financing secured by real estate than to an all-purpose loan for free use.

The bank can use the financed vehicle as collateral for car loans. Dedicated auto loans always require the vehicle to be assigned as security. For this reason, less stringent requirements regarding personal creditworthiness can apply.

The same can apply to financed purchases. When buying in installments, the purchased item is often assigned as security. The loan amounts are also relatively low.

Some banks have general rules on maximum loan amounts. For example, normal non-earmarked installment loans are only granted up to ten times the monthly net income.

With 1300 USD net this would be 13,000 USD and with 1400 USD net 14,000 USD.

Finally, banks can use lump sums for the household bill. For the first person in a household, for example, an amount of 600 USD or 800 USD is set, for each additional person an additional 200 USD.

Favorable credit terms through comparison

Favorable credit terms through comparison

How much credit you actually get on what terms, depends on the specific loan offers of the banks.

The offers can be quite different because the banks follow different guidelines when granting loans.

One bank may fully meet your loan request, while another bank is only willing to offer a significantly lower loan amount and also charges higher interest rates.
Of course, you can submit individual loan applications to five or ten direct banks and then laboriously compare the results.