Anyone who applies for a loan knows that this will result in considerable costs. However, they are usually offset against the loan amount. The cases where costs are calculated before a loan approval are in the area of dubious credit intermediaries and are a rip off. The Dresden Higher Regional Court decided back in 2012 that the loan is the rule in Germany without any upfront costs. Processing fees that banks charge are also not permitted.
The banks, however, charge the processing fee if a loan was obtained. The banks were prohibited from doing so on the grounds that a loan request was in the bank’s best interest. Basically, not much has changed because the banks are now shifting the fees to the interest rate. Not only the banks, but also credit intermediaries with no upfront costs, work seriously.
What is credit intermediaries?
The process of the dubious credit broker is always the same. The customer makes the loan application. The credit broker informs the customer that in order to actually be granted the loan, preliminary costs have to be paid. The customer does this in the belief of also getting a loan. But there is no credit here, but the terse reply from the credit broker that he could not have found a lender, and the loan declined. However, the customer does not see his preliminary costs again.
However, dubious credit brokers are not the only ones who have to pay upfront costs, the customer is often visited at home and is practically urged to sign an insurance contract. This is often not followed by a loan, but the customer has to pay the insurance premiums. There are also many credit intermediaries who sell advisory contracts, call expensive advisory hotlines and calculate undetectable expenses. A reputable credit broker with no upfront costs doesn’t work that way.
But why hire a credit broker at all? If the financial situation is difficult and the search for a loan proves to be exhausting and because many inquiries have had no result, a reputable credit broker is practically the ideal place to look for a loan. Many people have difficult financial circumstances and because of this, the work of a credit broker will be an important tool.
But there are not only reputable credit brokers on the internet, many alleged credit brokers also want to cut a piece of the cake, but only ask their customers to checkout without creating an equivalent. A trustworthy credit broker with no upfront costs will not require advance payment in advance.
A reputable credit broker with no upfront costs works on a success basis, meaning that he only receives his commission after the loan approval. A reputable credit broker will not charge incomprehensible expenses. Here the customer should be on the lookout for a reputable credit broker.
There are many credit intermediaries who sometimes work with foreign donors. To establish contact, a call or an Internet connection is sufficient, which does not cause any great costs. The reputable intermediary will submit his loan application with all necessary and transparent costs such as the effective interest rate, the interest and repayment rate, any loan security, non-mandatory additional offers such as residual debt insurance and all detailed information regarding a loan to the customer.
The guide of the reputable credit broker
The Internet spills over with loan offers from loan brokers. The customer can then lose track of things. Therefore, the loan brokerage should be chosen carefully. There are a few clues as to how the customer can recognize a reputable credit broker without any upfront costs:
– the credit intermediary has been working in this branch for a long time
– Registered tests such as from the German Company
– Careful checking of the customer’s creditworthiness
– all inclusive credit agreement open and transparent
– No calculation of preliminary costs or prepayment
– no home visits
– no expensive hotlines
– no cash on delivery fees
– do not require a reorganization or consultancy contract
– a bank employee should be available when the customer calls
If the customer pays attention to these things, he will find a reputable credit broker with no upfront costs.
The work of the credit intermediary
The reputable credit broker has an advisory function and can even obtain a loan in difficult cases. Customers often do not have the right overview of online loan offers. The credit intermediary can also help here. It is the customers who have a poor credit rating and turn to a credit broker. A loan has often already been refused. The advertising of the credit agencies promise all types of loans to customers with poor credit ratings.
In Germany there are more and more non-solvent citizens and thus the business of credit intermediaries is flourishing. Customers should avoid particularly large-scale advertisements that promise loans in all situations and with all loan amounts. If he adheres to the aforementioned features, he will also hire a reputable credit broker without any upfront costs. Basically, when lending, if a customer has no income, if he has negative entries such as a garnishment or an oath of disclosure, no permanent employment, he will not receive a loan, no matter what the advertising promises.
A reputable credit broker with no upfront costs is exactly like a reputable bank. He checks the creditworthiness of the customer extensively and makes no promises that are not tenable. Credit intermediaries can be found as commercial brokers in a company or they offer their services to insurance companies or financial companies. There are also special large credit agencies that cannot afford to work frivolously. They all have a good reputation to lose and he’s hard cash in this industry.
Processing fees are also not permitted
A reputable credit broker makes his good contacts. Often there are explanations in the work of the mediator why a negative Credit Bureau has arisen and thus have a mediating position. Many credit intermediaries receive their commission from the lending bank, so customers can be sure that they do not have to pay any upfront costs.
The law stipulates that a credit broker is not allowed to charge upfront costs, but reputable banks are also not allowed to charge processing fees. Legislators clearly state here that all checks by the bank are in the interest of the bank. If there is no credit, the applicant does not have to pay any fees,
The difference between nominal and effective annual interest is considered as the bank’s income. This includes all the costs that make up a loan, including the processing fees.
Even for the Credit Bureau-free loans that come from abroad, no upfront costs are common. The loan request is also free of charge.