Instant loans are praised as a way to get fast money.
Of these, ” difficult cases ” are attracted, which have no chance with classic installment loans with Schufa examination. But usually the loan with immediate promise is only given after a credit check . If you still advertise with an instant loan without Schufa , this is usually a bad deal for customers. No lender voluntarily takes a higher risk without significantly raising interest rates. For non-Schufa loans, customers also have to pay close attention to fees and many other hidden cost.
Today’s instant loans , as offered by online loan portals such as check24 , Auxmoney or Smava , do not have much to do with the traditional loans of the house bank. Previously, it was customary to arrange a consultation first and then to wait several days or weeks for the loan to be granted.
By the way, instant-lending loans do justice to their name: although they are standard installment loans, they quickly tell customers if and when they have the money . For the loan with immediate approval, there is the following procedure:
- The customer determines the desired amount, the term and the monthly installment to be paid by an intermediary. Online consumers can take up to € 25,000 in instant loans . recommends that you choose a loan with a shorter term and higher rate if possible.
- The online calculator then filters the appropriate offers in a short time. That is, it shows current offers from banks and private investors. The larger the loan amount, the higher the monthly installments.
- If the potential borrower has made a decision, he must now provide some personal information. Within seconds, the creditworthiness of the customer is tested – using the intermediaries of an in-house scoring system, which also uses a Schufa information. This is ultimately the basis of whether the lender gives the immediate promise or not .
- If a commitment is made, the customer only has to identify himself via a video or post-ID procedure before the money is in the account. The payout may even be possible within 24 hours in some cases .
The broker points out that instant loans are not awarded without Schufa exam. Instead, the lenders also want to convince themselves of the creditworthiness of the borrower during this quick process.
Credit with instant confirmation reputable?
The Consumer Center informs that the brokerage makes the lending more expensive. Especially with instant loans without Schufa, without collateral or for low earners, special care should be taken. For in the past loans were practically never given without sufficient creditworthiness.
How can I tell if an instant loan is reputable?
On the one hand, consumers can be guided by the APR , which also includes all fees. How expensive commercial installment loans are, determined the financial advice on an ongoing basis. The FMH index indicates the average interest rates of the 51 most important and reputable commercial and direct banks. For example, with a installment loan over 36 months, interest rates in December 2015 were just over 5 percent.
The offers can not only be overpriced. Especially for instant loans without Schufa consumers have to pay attention to some additional cost traps. Therefore, borrowers need to check that none of these widespread rip-off methods apply:
- No upfront or loan fees: Intermediaries may only charge commission on successful lending. For the service of an offer preparation also with credits without Schufa no costs may arise . Beware of classic loans, if an advance should be paid or if application documents are to be sent against cash on delivery. These are worthless documents, but are charged at a high price . Even with supposed discount cards, the customer ultimately always makes a bad deal.
- no unnecessary supplementary insurance: Some instant loans are extremely expensive due to additional policies. The instant loan should not be linked to mortgage lending nor to residual debt insurance . Such a residual debt insurance pays the remaining debts in the event of death and secures family members. considers the additional costs for the insurance to be too high. It is unnecessary for the insurance for instant loans of a few thousand euros or if other collateral is deposited. Otherwise, it would be better to take out the remaining debt insurance separately from the loan . It is important for the customer to question whether an online insurance automatically adds insurance.
- no fee-based advice : Due to fee-based hotlines are often high additional costs. Anyone who takes out a loan with an immediate commitment should also be able to reach lenders or agents free of charge by e-mail or telephone.
Instant loan as a Swiss loan without Schufa
Unlike in Germany there is no Schufaabfrage the credit check in Switzerland. Instant loans without Schufa are therefore also known as Swiss credit . The lenders often come from our neighboring country and are brokered by German companies. The Schufa Score of the customer is therefore – as usual in Switzerland – not taken into account . It can therefore also give no new entry in the Schufa.
The Swiss lenders, however, calculate exactly the risk of a loan default. And this is even greater for self-employed, low earners or “hardship cases” than for an employee with a good credit rating. For customers, this means a premium over normal installment or instant loans. Even the broker Smava considers the interest rates of providers with loans without Schufa for ” disproportionately high “. advises: ” Stay away from loans without Schufa! “
In any case, customers must meet some conditions even without a loan with immediate approval without Schufa:
- so the applicant may not be a minor
- the residence must be in Germany
- A proof of income is required (the earnings do not have to be high).
- if the rate can not be regularly deducted from salary, other collateral must be deposited
The fast, low-interest money by mouse click is therefore a myth for instant loans without Schufa – even if some providers advertise with such promises. “But this is often a bait offer, ” says Max Herbst, owner of the financial advisor of the same name, to Handelsblatt.
When does an instant loan make sense?
Above all, the financial service providers praise the fast processing of an instant loan. But whoever has to get money fast, for example because of a repair, often has other possibilities. The first source should be its own reserves, such as a call money account, used up. Only those who have not accumulated capital and thoroughly examined all alternatives can opt for an instant loan .
If there are reminders or open invoices because the collection is also overdrawn , an instant loan can also be useful as a “side loan”. In addition to existing loans, a new loan , which is intended for rescheduling , is added. But that carries the big risk of taking over financially. Therefore, borrowers need to be honest that they can handle the monthly income and expenses.
Often, financially troubled customers turn on the debt spiral by taking out a new loan. If the bank rejects a loan application and the debt continues to rise, only the transition to a debt counseling service will help! However, far too many consumers act far too late and can no longer avoid a personal bankruptcy. Further loans, especially without Schufa, no longer make sense for existing debts.