The reasons why installment loan is to be used or even needs to be used are undoubtedly very diverse. Often it is simply a matter of bridging an unexpected financial bottleneck, for example, because a major new purchase is in the room. So one turns with a correspondingly positive expectations of his familiar house Bank and is then confronted with the statement of his Bank consultant, called: credit refused! The shock is great, and often this rejection of the desired loan, is also difficult to understand. There are many reasons why your installment loan application is rejected. In most cases, these results from legal requirements but often also from the general terms and conditions of credit institutions. This often results in the reasons that prevent serious lending. However, there are opportunities to counter these grounds for rejection in a further discussion with the Lender, thereby increasing the chances of a loan being granted, which is yet to take place.
One of the best ways to increase the chances of getting a loan, the designation of a second borrower. The second borrower should, of course, also have a documented, secured income. On the one hand, this increases the Chance to reduce the term of the loan by higher loan rates, on the other hand, the repayment of the loan is secured in advance if a salary falls. For this purpose, the second borrower must be prepared to be liable for the loan in the same way as the first borrower. For this reason, close relatives or family members primarily offer themselves as additional borrowers.
To increase another quite effective means to the chances of getting a loan, is the use of a residual debt insurance. While consumer protestors keep urging that this insurance should be avoided as far as possible in the context of borrowing, this is only half the truth. The point at the residual debt insurance is that nothing immediately accept the offer of the Bank for the conclusion of those RSV. Here, it is also necessary to look at the free market for a suitable insurance offer and to offer this in RTL Bank as a guarantee of the credit. For the usefulness of an RSV is undoubtedly given. Depending on the contract variant, it will pay the instalments in the event of unemployment, incapacity for work or death of the borrower.
If existing loans are difficult to carry out on the budget, it may also be worth paying off them with the aid of the newly borrowed loan. They then speak of debt restructuring. As a result of the recent sharp drop in interest rates, it may be possible to significantly reduce the cost of the old loan. At the same time, new financial scope is created for the additional amount of credit to be taken up. However, it is necessary to take into account any possible compensation for premature maturity. This early repayment decision, which many banks require for the early repayment of the loan, often entails additional costs, which must be settled.