Loans from individuals 2019 – As an alternative to the house bank?

Scoring at Private credit is crucial

Scoring at Private credit is crucial

It does not have to be the forgotten bill that makes you drop in prestige at the Private credit. The score is calculated using various statistical values ‚Äč‚Äčthat are not necessarily related to your ability to pay. If your score drops too far, for example as a result of frequent job moves or multiple small loans within a short period of time, you will not get a cent from many banks. Unfortunately, the Private credit score is often rated very high by banks, although it by no means reflects the actual financial situation of a client.

In the event that your Private credit score is too low, the credit marketplaces can help you to make many inquiries from home with just a few clicks. Here you also have the option of obtaining loans from private investors, even though the banks reject your requests.

Apply for credit via credit marketplaces

Apply for credit via credit marketplaces

Basically, the application is similar, as it does at a bank. They give out data on your personal circumstances, income, housing situation and existing loans and then receive offers. The difference is that you make a lot of requests with just one input of your data. The best credit market places from Germany for personal loans can be found here .

Most of the time you will receive the answers from interested parties within a few hours, provided that you submit the application within business hours. If you choose one of the offers, you usually only have to print out the contract, sign it and send it back to the creditor. What documents (bank statements or payslips) the lender needs, he tells you in his letter.

Benefits of a loan from private investors

The biggest advantage is that a private lender has different foundations than a bank. Many banks reject you as a customer in principle, if your Private credit score has dropped below 99. The private investor, on the other hand, is aware that you would not apply for a loan if you had no shortage of money and would be much more tolerant.

Another big advantage with private investors is that the new loan is not necessarily registered in your Private credit. This will be decided case by case, but this decision may be in your favor. You may have “cleaned up” your Private credit with your loan application.

The disadvantages

Not only does it benefit banks to shirk their loan application. This coin also has two pages.

For example, loans from private individuals are usually several percentage points more expensive than would be the case with banks. In this way, they protect themselves against the risk they bear by issuing loans to risk customers.

Another difficult issue is the protection against death, unemployment or disability. While the installment insurance policies are usually offered by default by the bank, the private investor will have no insurance in the hindquarters. Of course you have the option to look for a separate insurance.

One disadvantage that may not affect you at all is the maximum loan amount. If you and your spouse have an average income, you can get six-figure amounts from a bank. Especially when buying a home such sums are not uncommon.

For private investors, however, the sum is significantly lower. Mostly, a maximum of 25,000 EUR can be applied for here. Why this is, you should quickly understand, if you ask yourself the following question: Would you lend a person a six-figure amount, if you have never met them personally?