Archive December 2019

Which documents are required for the loan application?

Today, hardly anything is as easy as taking out a loan. Lending has been made very simple in many banks, especially in the online area with online loans, in recent years. No wonder – after all, the lending business, especially in times of penalty interest from the Lite Lender, is the number one business area for many banks for money parked there.

Nevertheless, there are certain things that every bank and lender wants to and must clarify before deciding on a loan! Above all, these are:

  • Your identity
  • Your employer
  • Your income and expenses (household bill)

In addition, there are other documents and information that may be necessary for different types of credit. More on that later.

You need that for a normal personal loan

You need that for a normal personal loan

It is of course important to clarify your identity. With a branch loan, it’s relatively easy – you audition in the branch, show your ID and the bank clerk knows who you are. The process for online loans is now very similar to that of a branch loan. Of course, there is still the good old Postident procedure. You have to go to the post office with an appropriate form, which will be sent to you by the lender, and have your identity confirmed by a postal employee. To do this, you must either show your staff or passport. The form is then sent back to the potential lender.

But there is now also an easier and faster way of identification that many online banks offer their customers. In the so-called video identification procedure, you make a phone call to a bank employee or a service provider employee. Here you show your ID clearly visible to the camera and let the employee legitimize you by comparing your face with the picture in the ID. As such, exactly what is happening in the branch happens here, with the difference that you are at home.

Your employer – here the “right” employer can bring you advantages

Your employer - here the "right" employer can bring you advantages

If you want to take out a loan, your employer will usually be asked. There are two reasons for this: On the one hand, there are banks that use test calls to check whether you really work for the specified employer (this can happen with higher sums). On the other hand, an employer provides information about how secure a job really is, at least at first glance. Because even if the general job security is already very high for permanent positions, banks still have a certain classification, which employers are considered very safe and which employers could be more at risk of becoming unemployed.

If you are employed by an employer from the safe classifications, this can lead to better conditions in terms of interest rates at some banks. A permanent position in the public service, for example, is always welcome when lending (is often also referred to as a civil servant loan). On the other hand, a permanent position in a small craft business is a safe source of income for the moment; however, the security over the loan term could be classified as rather weak, which can slightly increase the interest rate.

Be sure to note! It is important that you do not make any false statements. This can result in your lender terminating the installment loan once granted and possibly making claims for damages against you. In addition, you must submit evidence of your details. At this point at the latest, a possible dizziness would be noticed.

Income and expenditure – a lot is often decided here

Income and expenditure - a lot is often decided here

When asking the employer, it’s about getting a rough idea of ​​job security. Ultimately, income and expenses are about how much credit you can or should afford.

First of all, self-disclosure is necessary. That means you have to state what your monthly costs are. These include e.g. B. Rent, charges for a house loan and costs of managing your apartment or house (operating costs, heating, electricity, etc.). The following items are important here:

  • cost of accommodation
  • Additional insurance
  • Maintenance costs for children or partners
  • More credit installments

A fixed amount for current living expenses is added to these current obligations. The total amount will be compared to the income you specified. As a rule, you have to prove your income in the last three pay slips. The self-employed usually have to prove their income on a profit and loss account.

The specific documents you need for a normal consumer credit are merely:

  • Your current identity card or passport
  • Pay slips for the past three months
  • For pensioners, the pension notification
  • Proof of additional income (if provided)

At this point, most banks already make an initial credit decision as to whether the desired loan is granted to you or whether your loan request should be rejected.

Loans that may require additional evidence

Loans that may require additional evidence

You can also compare other types of credit for which you may need further evidence or documents. If not already when the loan is taken out, then at least afterwards. Additional documentation may be required for these dedicated loans:

  • car loan
  • debt restructuring

With many car loans, the lending bank requests the vehicle registration document as security. However, in our loan comparison you will also find a whole range of providers who do not provide the vehicle registration document and who only have security anchored in the loan agreement. However, proof of the appropriate use of the loan must nevertheless be provided here.

If, on the other hand, you want to reschedule, you should specify all loans that you want to reschedule and, of course, those that you have beyond that when rescheduling. Do not skip any loans, because the new bank will query your credit rating to verify your details. For some banks, the credit rating query is sufficient to prove the current loans. Other banks, in turn, request the loan agreements, e.g. B. to determine the exact remaining debt.

How are credit requests actually checked at most banks?

When reviewing credit requests, the following things are considered:

  1. Are you already 18 years old, fully legally competent and legally competent and under the maximum age?
  2. What is your current monthly income (work income, pension, etc.)
  3. How much are the monthly expenses?
  4. What do credit bureaus like credit rating show about your payment habits and your reliability?
  5. Does the bank itself have scoring information about you, such as previous business relationships? Otherwise general scoring values ​​are used

Why and why apply for payday loans?

The answer to the question, “why apply for a loan” usually has a common denominator to those who ask it: the need for financial resources. And as strange as it may seem, even people with more money usually turn to borrowed money. Online payday loans can be a fundamental help, both in situations where the need is small and timely, and in cases where the amounts are large, and used for the development of a business or the purchase of a product whose value is out of reach in one payment. In short, a certain amount of money is needed, and credit is the fastest way to get it. In addition, these types of loans require a simpler number of requirements than traditional banks.

What are the main reasons why a loan is requested?

money debt

Each individual may have certain reasons to request financing, but below are some of the main reasons for which Spaniards seek financing:

  • Unforeseen expenses: In the times that run many families can only live, unfortunately and literally, daily juggling income and expenses. That is why any type of unexpected expense can break this balance and disrupt the economy. In this way, and in these situations, it is common to use loans to solve them.
  • Purchase and maintenance of cars : We need vehicles in our lives as a form of travel. Sometimes it is even the only option to reach certain places, either due to schedules, location or incompatibilities with public transport. The car is the vehicle most used by the Spaniards, and due to its relatively high cost, it is an expense that cannot be paid in a single term and for which financing is usually used. But the car is a double expense, since its use and maintenance requires a constant expense. Fuel, insurance, breakdowns, fines.

Other expenses derived from the car for which the Spaniards request financing

money debt

Household expenses and renovations: We Spaniards like to go out and enjoy the weather, but obviously, our houses are surely the place where we spend more time. A reform in the kitchen, a new television, putting a shower instead of a bathtub, are typically the reasons for which a credit is requested.

  • Studies and training: in the broadest sense of the word. Sometimes going back to school in September is a headache for parents. Tuition, uniforms, books, food … make the beginning of the course need an economic boost. It is also usual to request a loan to pay the university tuition, since the amount is high in both public and private entities. Any type of training such as courses, or a master’s degree, are other usual reasons.
  • Debt reunification: it is not an isolated event, having several loans at the same time. The home mortgage, the letter of the car, a mobile phone or an appliance financed by installments.

When cartoons come from different sources

money debt

Vacation and travel: For many, it is the only way to spend money that makes you richer. And people do not hesitate to ask for funding to discover the world, or to disconnect from the routine and have a family vacation.

  • Health / aesthetics: It is another of the most common issues in which the Spanish ask for financial help. From “putting the device” on the dentist, to purely aesthetic surgery operations are usual explanations when applying for a loan.
  • Wedding baptisms and communions: As much as to attend them, as to organize such an event. These social activities require some economic power. A suitable wardrobe, the gift, the menu, the perfect place to do it are “mandatory” expenses for a multitude of Spaniards, and for which to be part of them a loan is requested.
  • Common and current expenses: Gifts on specific dates, whims, and any type of small daily expense, also appears in the list of reasons why Spaniards turn to financing companies for help.

This is only a list in which the main reasons of the applicants are found

money debt

Each person in particular may have certain needs, and you may have others according to your priorities and, likewise, you will be able to access this type of financial support. What there is no doubt about is that this kind of specific help can be of great help, both to solve specific problems, and to create personal and professional development.