Credit for civil servants

The loans for civil servants

At the present time, many banks and credit institutions have targeted specific target groups for loans. This includes the ever-popular officials. Civil servants can now take advantage of many attractive and low-interest loan offers. Here, the officials are considered the preferred target group of banks. This is because they have a secure job and are almost “non-terminable”. For this reason, the officials receive particularly favorable interest rates when borrowing and benefit from a long term.


Loans for civil servants – Really useful?

  • What do you have to pay attention to?
  • A quick comparison helps
  • Request a free credit report
  • Check data overview for civil servant credit for correctness
  • Individual financial position before taking up loan to probing officials
  • Question offers from financial institutions
  • Obtain information regarding a civil servant loan

In recent years, supply has grown rapidly. That’s why today you can not only find a loan for civil servants, but a variety of offers .

But you should not opt for the first best offer, but first start a comparison. There is a lot to be considered when selecting the civil service loan.

Loans for civil servants – Really useful?

Loans for civil servants - Really useful?

Because of their exceptional professional status, civil servants are perfect customers for banks and credit institutions. Traditional customers have to pay high interest on long-term loans. This is not the case for civil servants. The higher interest rates are precisely due to the increased risk , which is often associated with a long term. Civil servants, on the other hand, can benefit from a long term and receive favorable interest rates.

Of course, these rates vary from provider to provider. An official has no fixed-term employment contract. Thus, they are very safe customers for the bank and therefore so popular. Likewise, civil servants can also receive large sums of credit. This can also be attributed to the secure profession.

What do you have to pay attention to?

When choosing the loan, one should pay particular attention to the effective interest rate. You have to compare this with other offers. Only then can you find the right official loan. The effective interest rate depends on the credit rating and can be very different. Likewise, you have to pay attention to the term and loan amount. Although an official has a secure job and thus a constant income, the duration is to be matched exactly to the loan amount. If too long a term to be chosen, then you have to expect high credit costs.

But the opposite is not better. If the term is too short, one often faces a high level of liquidity , which could lead to financial bottlenecks, especially in everyday life. Also on the repayment one should throw an eye.

Good to know:
Very useful is the repayment before the conclusion of the loan. However, most of the interest also rises a bit. Likewise, installment payments or similar types are available, which should be checked in advance.

A quick comparison helps

Before you decide on a civil service loan, so you should make a comparison. This is easily possible today via the Internet. Many financial portals offer the possibility for a quick and easy comparison of civil servant loans . For this purpose, usually a comparison computer is used. This calculator then allows individual information. Such details may include loan amount, term, usage, repayment and much more.

These can then be taken into account in the search. By the information then only the offers are shown, which really fit the own needs. So you can save a long search. Surely you will soon find the right loan for an official and then apply directly.

Request a free credit report

Despite official status, it is in the context of a loan application to prove the individual creditworthiness. Therefore, according to § 34 BDSG (Federal Data Protection Act), a free credit report should be requested from Schufa . This is available once a year at no charge.

The application for the document is possible via the postal service as well as the homepage of the credit agency . Letters must be accompanied by copies of the front and back of the respective identity card for identification purposes.

Written applications should be sent to the following address:

Schufa Holding AG
Private customer service center
PO Box 103441
50474 Cologne

In order to apply for the credit check online, users must follow the menu items “Private Customers” and “Data overview according to § 34 of the Federal Data Protection Act” via the website of the credit reference agency. This is how applicants get to the order form.

Check data overview for civil servant credit for correctness

The given data should be critically examined. If the overview contains incorrect entries, they must be revoked immediately or their deletion requested.

§ 35 BDSG gives consumers the right to delete this content. Schufa does not include employment data in the calculation of the individual scores . Thus, in theory, civil servants can also be downgraded due to specific scoring entries.

Even without negative entries such a gradation is conceivable. For example, if a person has multiple accounts, credit cards, and telecommunications contracts at the same time, this suggests an allegedly unusual payment behavior. Therefore, positive entries in their total can have negative consequences.

Individual financial position before taking up loan to probing officials

In order to draw up a sound financing plan, it is imperative to determine the personal financial scope. Therefore, potential borrowers should make an initial assessment of their free disposable monthly income in advance of a counseling interview.

In the course of this, the respective monthly net income, other income, rent plus ancillary costs, ancillary costs for property, possible mortgage lending rates and other credit installments as well as optional entertainment payments must be included in the calculation. In addition, household expenses, insurance and possible financing costs of the car are to be considered . In addition, monthly costs for hobbies and gifts should be planned.

It is mandatory to carry the valid identity card or passport. Applicants must also submit the salary statements for the last 2 months. This information is to be taken from the respective official status or the classification in the public service. In addition, a proof of account of the main bank account for the past month and the certificate of appointment as “civil servant” must be submitted. In addition, explicit disclosures regarding equity should be made.

Question offers from financial institutions

The civil servant status is usually tied to a timely loan commitment and a favorable annual interest rate . Constant repayment rates go hand in hand with planning security. Optionally, civil servants can easily collapse or repost loans. Special repayment installments can also be arranged easily. In addition, civil servants are characterized by low interest rates, long maturities and high loan amounts. Nevertheless, a comparison of the individual offers is advisable.

Civil servants’ loans are earmarked or concluded for free use. In addition, the annual percentage rate and the borrowing rate are to be compared.

Officials can further optimize their favorable conditions through additional collateral. Thus, officials who want to use a loan to finance a car, should explicitly complete appropriate financing . The optional assignment of the motor vehicle letter leads to even cheaper rates.

Good to know:
If applicants do not want to take out another loan, this should also be noted. This also brings with it a further optimization of the conditions.

Obtain information regarding a civil servant loan

Officials may, instead of a civil servant’s loan, take out a civil servant’s loan if they so wish . This is a mix of credit and insurance. Some financial institutions offer this option.

A loan is not an installment but a term loan . Accordingly, only the interest must be paid during the term. The repayment of the total sum takes place at the end of the term. According to the term a life insurance for loan amount and credit interval is completed.

During this time window, the person pays. If the insurance is due, the saved amount will be used to repay the loan. Such offers are to be compared in terms of their monthly rate.

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