Loan between family members: Private writing anti profitability

Among cohabiting family members (spouses, children, parents ) but also between close relatives (grandchildren, brothers and sisters, grandparents, etc.), non-interest bearing loans are frequently used for the purchase of goods of a certain importance, such as buildings, cars, or of other nature.
In these cases, given the close relationship, the loans were made without resorting to any type of act that formalized the same, considering it a “moral commitment”.
Today, the financial administration, thanks to new research tools of undeclared taxable income, such as that of the REDDITOMETER, no longer allows such loan formulas.
In fact, it is fundamental to demonstrate the origin of the sums converged into the account or the availability of a given subject.

Loan among family members: Private writing anti profitability is a method that is used to regulate loans between family members without resorting to often excessive formalisms.
You can do a private writing that must contain the date and the signatures of all the subjects involved in it; to make the date “certain” you can go through some streets, let’s see them together.
If the numbers of the loan are considerable, it is advisable to register the date of the private writing with the Inland Revenue, paying the relative registration tax in proportion to the amount of the sum considered; you can also register the date at the post office, you can use the electronic signature of the deed, or exchange the deed with a registered letter of return that certifies the certain date, or by exchange of certified e-mail that has the same valence of the registered letter.

Crif cancellation: how to get it for free

It is also important, pay attention to the granting and reimbursement phase, pay particular attention to the anti-money laundering regulations, carefully respecting the limits for the use of cash. 
The advice is that, for payments, to resort to methods of payments “traceable” such as transfers of various kinds or the use of checks. 
In various sites (which you will find by entering only the title of this article) you can find the various forms that attest to the private writing of sum donation among family members, or private writing of non-interest bearing loan between family members.

Loans for unemployed

Credit for employees

The loan for employees – low-interest with comfortable terms and repayment options

The loan for employees - low-interest with comfortable terms and repayment options

A loan for employees is comparable to a classic installment loan with variable maturities. It is granted to administrative employees, civil servants, commercial employees and civil servants who require additional funds in the short or long term. Especially for employees, the conditions are usually quite cheap, the terms comfortable and the loan repayment variable. In any case, a careful comparison of credit institutions is recommended, because the countless providers in the German market, offer different conditions.


The loan for employees – low-interest with comfortable terms and repayment options

  • The necessary requirements and plans for an employee loan
  • Better conditions for non-cancellable public sector employees and civil servants
  • Repayment of the loan by a capital life insurance
  • First compare the banks and their terms
  • Credit for employees – fast and secure
  • Save real money with shorter credit and small sums!
  • The term and interest on loans for employees
  • Faster without financial worries to the goal.

The necessary requirements and plans for an employee loan

The necessary requirements and plans for an employee loan

Employees usually have no problem getting a quick loan approval. If you have a steady and regular income , you will be able to service the repayments on time. But before taking out a loan, careful financial planning is recommended. Autonomous should be contrasted with the monthly expenses and revenues, so that the monthly repayment rate can be calculated. Here, a household book makes valuable help.

It also makes sense to find out about a loan loss insurance . This insurance protects the borrower against sudden, indebted insolvency and ensures that the borrower can repay his installments, even in times of need, regularly and on time.

Good to know:
A life insurance protects the surviving dependents against costs that may arise due to the premature death of the borrower.

Better conditions for non-cancellable public sector employees and civil servants

Non-cancellability is a privilege that can provide numerous benefits to civil servants and civil servants. Thus, the usual market credit range of 5000 – 80,000 euros . Depending on the age of the borrower, terms of up to 20 years can be agreed, which has the advantage that the repayment installments can be kept extremely low, leaving the borrower with greater financial leeway.

In addition, borrowers of such employee loans benefit from low interest rates and, in some cases, from a free special repayment right.

Repayment of the loan by a capital life insurance

Repayment of the loan by a capital life insurance

It is possible to repay a loan for employees and civil servants with a life insurance policy. All in all, this type of repayment is more favorable than the monthly repayment of repayment installments to the bank, because the monthly insurance premiums on life insurance earn interest.

The life insurance policy should have the same term of the loan agreement and the expected payout should be in the amount of the loan . At maturity of the LV, the entire accumulated money goes to the bank. The loan is redeemed and a possible surplus participation may be withheld by the borrower.

First compare the banks and their terms

Loans for employees show significant differences in terms and conditions. Numerous credit companies, banks and direct banks vie for the favor of customers. Accordingly, the interest rates of individual providers vary. Anyone who compares all providers before borrowing is better informed than someone who simply goes to a single bank adviser . The direct banks on the Internet, for example, often offer free comparison calculator, which calculate in a few minutes, the cheapest loan option.

Credit for employees – fast and secure


In modern times, it is not uncommon that money in everyday life can ever be scarce. Nevertheless, it is not a cause for concern, as the chances for a loan are extremely good . One reason for this is the safe and regular income. If this is available, and this can also be proved, this proof is almost sufficient for a permit. Nobody has to justify this.

The reasons for a loan often have a wide range. Starting with a broken washing machine over an accidental accident with the car. This damage must be replaced in any case. So a normal consumer can get into this situation faster than he would like.

Save real money with shorter credit and small sums!

Save real money with shorter credit and small sums!

For small sums, the possibility of a loan is given faster. At certain heights as for example from 5000,00 Euro a payroll is sufficient . This requirement varies depending on the bank. The bank statements of the last three months must be presented in order to ensure that the financial situation is currently hedged.

At altitudes of about 20,000 euros, banks and other banks want information about the length of the employment contract . A good chance can be calculated if the probationary period is exceeded, and an attempt to obtain a loan will never be wrong. A good help is to be able to provide collateral, which ensures an optimal and complete repayment of the loan. These can be for example a value property or a life insurance.

Also a guarantor from the family or friends circle can be a good help. In this case, it is necessary that the future responsible person has a creditworthiness.

The term and interest on loans for employees

The amount of interest depends on different factors. Basically, the rule is that this factor is decided with the length of the runtime. If you want to save, it is advisable to choose a short time to get rid of the ballast as quickly as possible and not to get too high a surcharge. Thus, fewer zins should lure to this loan with a higher repayment rate.

Faster without financial worries to the goal.

In this way, the borrower pays back the same amount with less interest. It is always right to be aware of the monthly rate that can be achieved without sacrificing life’s essentials . Expenditure must be calculated and adhered to exactly. In professional circles, lawyers and consultants have a good rule of thumb. Thus, the rate of the chosen loan should not exceed forty percent of a net income to prevent renewed financial difficulties.

Those who act in this way are fortunate enough to have overcome these worries with heart, reason and reason. In everyday life it is often not easy to keep an eye on the financial situation, and often one is too comfortable after work.

Compare worthwhile with every pending and planned loan. With a creditworthiness without objection and registered entry at the Schufa an employee has many possibilities for his planning. Even if the road to a credit company or a particular bank appears to be the shortest and easiest, it is highly recommended that the comparisons be made.


Car loan comparison – house bank, online bank or Autobank?

Car finance is very popular in Germany

Car financing is available for a variety of reasons both for a new car and for a well-preserved used car. Car financing refers to earmarked borrowing . Unlike a consumer- free consumer loan, which is also referred to as consumer credit, auto-financing is a loan against security. In order to prevent a sale of the externally financed vehicle, the registration certificate Part II, the former motor vehicle letter is deposited with the lender. This document is the cause of the vehicle. Whether buying or giving, the car always includes proof of the respective owner. Car financing is necessary if there is not enough savings for the required purchase price.

With the autobank of the dealer, with the vehicle bank of the vehicle buyer and with the online bank on the Internet, there are several, very different types of financing options to choose from to apply for the car loan. While the car buyer at the car dealer as well as at his house bank for the car finance only one offer is made, the situation on the Internet is just the opposite. Here can be determined with the loan calculator on one of the online portals independently and without assistance, the cheapest car financing. Even with car loans, a credit comparison is worthwhile, because especially in mid- or luxury-class cars, the sums are no longer insignificant. With a car loan comparison, the user can get an overview of the conditions, the financing and the banks.

 Woman is happy about new car


  • 1 car loan through the Autobank at the dealer
  • 2 Car financing via a bank of your own choice
    • 2.1 Car loan comparison as a parallel, simultaneous comparison of several offers only possible on the Internet
  • 3 Car loan without Schufa rare, but possible
    • 3.1 Summary of car loan comparison

Car loan through the Autobank at the dealer

Car loan through the Autobank at the dealer

The local dealer offers car financing for its car brand, which is sold exclusively by him, for example via the VW bank or via the Renault bank. This financing offer is usually valid for new cars, depending on the individual case but also for used cars. In many cases, it is virtually no alternative for buying a car. The aim of the manufacturer is to use lucrative offers of his own Autobank to influence the sale of vehicles and thus their new registration numbers. Together with this car financing, the car buyer is offered a complete package for his vehicle. These include car insurance, regular maintenance and inspections, up to the TÜV inspection with main and exhaust gas examination. It is difficult, even impossible, for the customer to compare this car financing directly with other offers. It is much more than a car loan through the associated services and the associated customer loyalty.

The car buyer gets rid of running, time and effort. He gets everything delivered from one source, which is temptingly easy. On the other hand, there is no way for him to look for alternatives, to calculate and to compare. The financial settlement is identical to that of the car loan at a bank or savings bank. The Autobank is also a Schufa business partner. The credit rating is assessed on the basis of the Schufa base score, and the car finance is entered in the Schufa database. As a collateral, the former motor vehicle letter, today’s registration certificate Part II deposited with the Autobank. The car buyer is de facto tied to his authorized dealer.

Car financing via credit institution of your choice

Car financing via credit institution of your choice

For the vehicle owner, it can be quite worthwhile to take care of the car financing for the new car itself. He has two decisive advantages. On the one hand, he can choose his own financier based on a car loan comparison. For another, he is a cash buyer at the car dealer. The new or used car is paid in one sum. If the car buyer brings no used vehicle and gives in payment, he can negotiate a cash payment discount in the one to two digit percentage range of the purchase price. This reduces the price of the vehicle quite clearly.

Either this saved sum is used for a first special repayment of the car loan, or the loan amount is set accordingly lower from the outset. In addition, now offers a car loan comparison with the autobank of the dealer. However, this is not possible one to one, because not every single service can be computationally recorded by an online computer.

Car loan comparison as a parallel, simultaneous comparison of several offers only possible on the Internet

Even the own house bank can make only a single car loan offer. This varies only in terms of loan size and repayment term, but is basically one and the same car loan. On online portals on the Internet, however, can be selected from several to numerous car loans (per se, an online loan). Among the features in which the various car loans differ significantly include, among other things:

  • free special repayments
  • early repayment of car loan
  • Choice between credit-dependent and credit-independent car loan
  • Choice between car loan with and without Schufa
  • Choice of closing rate in financing

Basically, car loan as a installment loan is a typical consumer credit. Because the car loan for the new car or for the used car is secured by the deposit of the registration certificate Part II, he is often much cheaper. The effective interest rate is lower than for consumer-free consumer credit. The vehicle owner can not sell the loaned car without the consent of the lender. He can not sell it or give it away. The future vehicle owner simply needs the registration certificate for vehicle financing. A car loan with a final installment is usually the best choice, since the monthly burdens remain small and the consumer is financially not overwhelmed with the final installment .

Car loan without Schufa rare, but possible

The loan without Schufa is offered by some German and foreign online banks. This is a installment loan in the middle four-digit euro area. For the credit check, the Schufa base score is waived. The loan seeker provides a detailed self-assessment of his economic situation with current income and expenditure. The subsequently approved loan without Schufa will not be entered in the Schufa database. He remains a discreet loan of which only the two parties know. Against this background, it is not excluded, but also not easy to include a higher car loan in the five-digit range without Schufa. For the low-priced used car, however, this is not a problem. Since this is also a consumer credit in this case, the online bank dispenses experience according to a collateral. In the end, it does not matter to her how the loan amount of EUR 3,000 to EUR 6,000 is used. Decisive for the credit approval is the creditworthiness, which is scrutinized on the basis of the documents, without the Schufa score.

Summary of car loan comparison

  • Both a new car and the used car can be financed via the car loan as installment credit
  • A car loan from the dealer’s car bank is one of several options
  • The house bank, like the Autobank, can make only one loan offer
  • A real car loan comparison is only possible on the internet
  • Both the credit terms and the contract contents must be compared
  • In addition, a car loan from the Autobank should be compared with that of the bank
  • Which car loan in the end is the cheapest, depends largely on the amount of the cash discount, which is negotiated with the car dealer
  • Here again several offers from different dealers can be compared
  • With a few exceptions, car loan is always a loan with Schufa
  • The purpose-built car loan with Schufa is secured by depositing the registration certificate Part II with the lender


Flexible credit


The flexible loan represents a special type of borrowing transaction and thus a special type of loan. We differentiate between the current account credit and the repayment credit.


For current account credit:

  • Special feature of this type of loan or loan:
  • For disposition credit:
  • The flexible loan – a good solution
  • Who is the right lender?
  • Who awards a suitable loan?
  • Advice:

For current account credit:

A loan or lender tells a borrower to borrow a certain loan amount (eg: 100,000 euros) over a fixed term (eg 1 year). The borrower agrees to pay interest on the loan and repay it on time.

Special feature of this type of loan or loan:

The lender provides the 100,000 euros on time – and the borrower can retrieve this agreed amount, but he does not have it. If his credit needs currently only 20,000 euros , he calls only 20,000 euros. He therefore has an open credit line of 80,000 euros.

The borrower only has to pay the borrower 20,000 euros. For the unused 80,000 euros he has to pay a provisioning fee. But this is much lower than the actual interest rate.

The objective of the borrowers is to have a liquidity buffer available . Secured by this liquidity buffer, they can react quickly and compensate for payment defaults. The incoming sales proceeds reduce the interest burden and at the same time increase the potential credit line.

The current account credit is used by merchants and traders. He meets their need for financial flexibility and security, with manageable financing costs .

Good to know:
A current account credit can be prolonged (extended) in consultation with the lender. The respective loan amount can be adjusted to the course of business and the respective financing requirements .

There is no provision for the loan to be secured, however, the lender will require insights into business histories, information about the overall financial situation and business prospects. For private individuals, this type of loan is rather unusual . Here we find the disposition credit.

For disposition credit:

Account holders with a regular cash income are often offered a discretionary credit by their account-holding bank. This type of loan is colloquially referred to as Dispo .

For the bank client and potential borrower, the offer submitted by the bank is not binding. He can have a disposition granted, but as long as he does not overdraw his account, the credit offer of the bank remains a unilateral declaration of will the legally necessary assumption is missing .

Only when the account holder covers his bank account and thus uses the MRP credit, a loan agreement is created and the borrower is obliged to pay the agreed interest rates. If the borrower repays the interim loan, the loan agreement expires .

A provision fee does not occur. The bank customer can negotiate with the bank about the amount of the disposition credit granted. A real credit protection is not provided for this type of loan because it is a pure personal loan.

In addition to the continuous receipt of money play here the personal impression and the reputation of the person a paramount role. A rule of thumb is that the dispo can be two to three times the monthly cash receipts . With a monthly cash receipt of 5,000 euros, a potential Dispo in the amount of 10,000 euros to 15,000 euros is possible.

Interest on overdraft facilities is relatively high. Therefore, a long-term financing an installment loan is always the better solution .

The flexible loan – a good solution

The flexible loan - a good solution

In modern times, it has not become a rarity to have to take out a loan. A drama does not represent this fact, however, especially since a wide range of lenders are available. If the creditworthiness is still in order, or not burdened too much and the debts still to save, the possibility of each person is available quickly and without further problems .

A flexible loan is a good way of borrowing finances. He is as versatile as life itself and adaptable to different situations. He is praised in great form by modern banking houses and has the greatest success rate when it comes to a repayment.

If a customer can rely on the promise of a bank, it is possible that he can be quickly disappointed, especially since nice words are spoken quickly. The employees are psychologically trained, so a customer can fall for a fix. Every employee just does his job, and so every customer should be aware of that before signing a contract . It is particularly important to take care of all agreements in a contract, so that it can be followed subsequently.

With a flexible loan, the contract terms are looser than others. The borrower is free to take a payment break, provided that it has to be agreed in writing. For other contracts, this action is not possible and can be very expensive. In that case, the lender could charge a fee for that, which could be excessively high.

Who is the right lender?

Who is the right lender?

For reputable lenders, it is possible to take loans with flexible repayment. As a borrower one should inquire exactly and value written agreements. A verbal contract may count, but in case of dispute it is difficult to prove , unless it was recorded with a phonogram or recording device.

Good to know:
A loan with a flexible repayment can recognize the customer in the credit agreement. Of particular note is the fine print. This contains all the information about the flexible form of credit. There it is obligatory to mention this and to name the possibly incurred costs in detail.

Who awards a suitable loan?

Who awards a suitable loan?

Normally, the customer can turn to any bank of his trust. Modern banking houses are designed to provide flexible loans. Such a loan depends on what the borrower has for exact ideas and what this financial flexibility is worth to him. In itself, the banks put up a certain overhead cost, because it is finally a special request and the companies want to earn.



Care must be taken that a flexible repayment of a loan does not bind the borrower. There are various special repayments, which can be credited to the main amount . For pauses of the payment is a certain debt restructuring. If you are so satisfied with a loan, you do not have to make unnecessary changes or steps in between.

To mention is the case that the customer must always remember that he himself must pay back the loan and not the bank. The clerks may be very friendly and likable, but it is for their job and not because they like the borrower so much.


The installment loan – one of the most popular types of financing

In life, there are always situations in which an installment loan is an optimal solution. Above all, if the financial scope is so tight that new purchases of equipment or repairs for the car are not possible, installment loans. You do not always have to save years or yourself for the next year to make a dream come true. As interest rates have reached a record level today, installment credit is becoming an increasingly popular option for improving their financial condition, making purchases, or fulfilling wishes that would not be possible without funding. But before you make an installment loan, you should get information, tips and tricks in advance, so that you can be sure that you have chosen the best offer in the end.

The installment loan - one of the most popular types of financing


  • 1 The installment loan – one of the most popular types of financing
  • 2 A financing example
  • 3 installment loan terms
  • 4 requirements for receiving a installment loan
    • 4.1 The question of purpose
    • 4.2 The financing plan for the installment loan

The installment loan – one of the most popular types of financing

The installment loan - one of the most popular types of financing

There are many different funding options; whether loan, mortgage or debt restructuring. Another option, which is chosen more and more often, is that of the installment loan. A installment loan is a form of financing that is characterized by paying the amount collected in monthly installments. The payment is made in one piece; the monthly installment is paid on the basis of a variable or fixed interest rate. With variable interest rates, there is a possibility that the monthly rate – based on the European interest rate – fluctuates. So the rates can be cheaper, but also more expensive. With fixed interest rates, the monthly rate remains unchanged. The borrower therefore already knows from his first installment on which monthly charges he must expect – until the end of the term or until the repayment installment. The loan amounts are usually between 500 and 80,000 euros; the running time is on average between 12 and 84 months, whereby variants with 120 months are possible.

A financing example

The loan amount is 10,000 euros, the term is 3 years (36 months). The interest rate is 5 percent. The repayment amount is – after payment of the repayment installment – at 11,500 euros (the loan amount is 10,000 euros, the loan interest at 1,500 euros). The loan installment would be – divided by 36 months – 319.44 euros. Sometimes it can come to deviations; In practice, account management fees or other charges are charged, so that not only the monthly rate is important in the credit comparison, but also the total charge at the end of the term.

Installment loan terms

In a installment loan – or consumer credit – of course, the conditions are in the first place. Although banks offer the same services, they differ in terms of fees and interest. But also the personal financial situation of the applicant plays an essential role. Who has collateral, has a good credit rating and is in a secure job relationship, will sometimes get better conditions than an applicant who looks for a rescheduling, perhaps even has negative entries in the Schufa and had to change his job several times in recent years. Anyone who is unsure whether the offer he has been submitted, is actually favorable, should therefore carry out a credit comparison in advance. There are several free portals on the internet that can be used to compare the different offers of the banks. However, the applicant should pay attention not only to the monthly installments or the interest rate, but also to the total burden at the end of the term. Exactly in that position are included any fees and other costs that make the loan expensive in the end. In the course of the comparison, direct or online banks should also be taken into account. Especially with installment loans, which have lower credit sums, online banks score with extremely good conditions and very low interest rates. Not always, the house bank where the claimant has his account and credit card must have the best offer; Sometimes it is also the online bank, which does not have a branch, but has the best conditions.

Requirements to receive a installment loan

Requirements for installment loans Applicant must be 18 years or older and resident in the country where the loan application is made. Other conditions are possible, but these depend on the sponsoring institution. Many credit providers check the Schufa, others require an employee relationship, so that the applicant gets the installment loan. The bank may, for a variety of reasons, reject funding. Loan applications are predominantly valued negatively if the bank recognizes a risk that the borrower may not be able to afford rates a) or b) the borrower will be unable to receive the entire loan amount – referring to the term and amount of the loan – to pay back. Banks that want to score with various slogans such as “immediate credit”, “no Schufa check” or similar advertising should be questioned. These are sometimes dubious lenders, who know quite well the problem of the applicants, who are repeatedly rejected by banks, and try to profit from it. There are also legitimate banks that grant loans without Schufa, but can pay for this service, so that here higher interest rates are payable. Disposition loans, ie those financing that work on the basis of overdraft, should be avoided. Discretionary credit is one of the most expensive financings offered by banks.

The question of the purpose

If the applicant decides to use an installment loan with a purpose, he sometimes receives better conditions. Thus, if the applicant chooses a car loan, the annual interest rate is more favorable than if it were an ordinary consumer credit without a purpose. The advantage of the intended use is that the bank offers better terms as the institution knows what the money is used for. This is also the disadvantage of the applicant: He can use the loan amount only for the purpose – for example, the purchase of a car – use. If there is no purpose, the borrower has the money freely available, but must expect much worse conditions.

The financing plan for the installment loan

Anyone who chooses an installment loan should design a financing plan or budget in advance and answer the question of what loan amount is needed. It is important not to calculate too narrowly. For example, anyone who buys a new car and only wants to raise an installment loan of 5,000 euros sets a limit. Who sets a limit of 10,000 euros, however, can certainly use a margin, which is crucial in the end, to finally fulfill the dream of owning a vehicle. If the applicant notices that the amount paid does not suffice, he can apply for an increase, but must expect poorer conditions thereafter. For all loans, it is always true that the borrower should, in addition to obvious factors such as interest and principal, also keep an eye on whether there are any processing fees for the loans from the bank.


Remaining debt insurance for consumer credit

Remaining debt insurance for consumer credit

Remaining debt insurance for consumer credit

With a loan, consumers are increasingly offered a so-called residual debt insurance. Unfortunately, the offers of banks and credit institutions are difficult to comprehend, as the costs are not presented transparently. Furthermore, it is rarely clear whether it is a voluntary additional offer, or whether the insurance is a mandatory requirement for consumer credit.


  • 1 sense of a residual debt insurance
    • 1.1 Real Estate Financing
    • 1.2 Car financing
  • 2 Remaining debt insurance and debt restructuring of a loan
  • 3 Revocation of a residual debt insurance
    • 3.1 Relationship between credit and residual debt insurance
    • 3.2 Dealing with invalid cancellation clauses
    • 3.3 Immoral Contracts

Sense of a residual debt insurance

With the help of a residual debt insurance, you can secure loans that are still open. This is especially useful if the borrower can not stand alone for it. The scope of the insurance packages varies by provider and should be compared in advance. In general, however, the insurance of the borrower takes place in the event of death, and usually additional risks such as involuntary unemployment or disability are also covered. Still other institutes continue to help in the event of sickness, when wage payments are no longer made. This makes it clear that a residual debt insurance always brings benefits for both sides. By concluding such an insurance contract, the bank or savings bank has greater assurance that the loan will be repaid. In addition, the borrower does not get into the debt trap.

property financing

property financing

A residual debt insurance also makes sense if you want to finance a property safely . Mortgage lenders offer insurance in most cases. In general, two groups can be distinguished: On the one hand, there are insurance offers that intervene in the event of death of the borrower. On the other hand, the financiers offer extended offers that cover unemployment and disability. Especially useful is the pure death assurance, should you build a house or buy. Such an insurance contract protects the survivors and keeps the home even if a main earner no longer exists. Such residual debt insurance is comparable to a risk life insurance policy. However, insured persons do not have to undergo a health check and all outstanding liabilities from the loan are hedged independently of the term. Furthermore, it is advantageous that the expenses decrease with increasing repayment.

If additional criteria are to be covered, residual debt insurance is less attractive. The costs reach disproportionate heights and the conditions are often to the detriment of the insured. If you become unemployed or incapacitated for work, you must first wait three or six months for the insurers to pay.

auto financing

Since many credit providers offer the residual debt insurance during a consultation, customers often have the impression that the insurance contract is part of the credit agreement. However, this is rarely the case. The credit institutions usually grant a consumer credit even without insurance. Little sense makes such insurance in the following example: If you want to buy a new car worth 30,000 euros and thereby only 15,000 euros can be financed through a car loan . If the car is then still protected by a fully comprehensive insurance contract, a residual debt insurance is usually not appropriate. Here the equivalent value of the vehicle would be completely sufficient to secure the financing. If it came under similar conditions to the conclusion of an insurance contract, the termination of the same is recommended. An expert will help with such cases and identify ways to terminate the residual debt insurance contract. However, if you are dependent on the car for professional reasons, it makes sense to provide protection against unemployment: the bank incurs the car in the event of outstanding installments, which makes it very difficult to re-enter a new job. It is advisable to keep the residual debt insurance or to conclude such insurance.

Remaining debt insurance and debt restructuring of a loan

If you want to benefit from cheaper interest, rescheduling a consumer loan makes sense. This approach also enables them to cancel costly residual debt insurance. Unfortunately, this is associated with significant hurdles, as the calculated balance of the bank is often surprisingly high. In addition, the rule is that institutions usually only rarely repay existing residual debt insurance. An expert is the first point of contact to examine your own case individually. The appraiser checks the total amount of the remaining claim and takes over the insurance termination. In general, one can usually make use of a so-called special right of termination, if one replaces the credit. Here, the reason for the residual debt insurance is eliminated, so that a termination in general, nothing stands in the way. In addition, consumers are entitled to a credit note for their unused contributions. Unfortunately, banks like to ignore this point, which is why advising a freelance expert is advisable.

Revocation of a residual debt insurance

If you do not want to declare a residual debt insurance anymore and have just completed it together with a loan, you need to act swiftly. An independent appraiser usually helps very well to examine the various options. It is particularly easy to revoke an insurance contract while the legal deadline is still running. Within the period both contracts are considered independent. It is never permissible for the bank to terminate consumer credit unless the contract is concluded. However, this is impossible, the residual debt insurance should be condition for the loan. In some cases you can talk to the bank and, if necessary, conclude a new loan agreement that does not require the insurance. An appraiser will help here.

Connection between credit and residual debt insurance

For many years it has been argued that there are two ways to decide whether or not credit and residual debt insurance are related businesses. An economically binding business is the two contracts when the insurance is a prerequisite for concluding the loan agreement. This fact is undisputed and clear. If the banks are obliged to include the insurance costs in the interest calculation for consumer credit, this is also a related business. This increases the annual percentage rate of the insurance – it must be reported in full.

The matter is particularly complicated when the consumer credit and the insurance contract are independent. There are two different contracts in each case. Consumer advocates often argue that, under certain conditions, this is also a related business. Banks and insurers dispute this, however. For the first time, the Federal Court of Justice (BHG) created clarity with its judgment of 15.12.2009 and concluded that there is an economic connection. As a rule, it is the case that the banks raise the premium for the residual debt insurance to the original loan amount indicated by the applicant. In this way, the institutions finance the insurance in whole or in part via consumer credit. There is no doubt that there are two related businesses here. On January 18, 2011, the BGH continues the previous ruling. This has consequences for consumers who want to take back their loan agreement: Since it is a related legal transaction, the borrower is no longer bound to the residual debt insurance in case of revocation of the loan agreement.

Dealing with invalid revocation clauses

Based on the judgments of the BGH and the case law of the European Court of Justice (ECJ), consumers have the option of revoking the loan or residual debt insurance contract even after expiry of the time limit specified in the contract. However, this is only the case if the terms of the cancellation policy are wholly or partially ineffective. Here the deadline for objections set out in the contract is canceled – even though the insurance or credit agreement itself is valid. Little is known that today applies to most degrees. That fact makes it easier for borrowers and insured people to break away from unpleasant contractual relationships. The credit and insurance contracts are therefore not legally binding because the wording does not comply with the legal requirements. It is advisable to hire experts to check the clauses if you want to sell a contract. In general, it always comes down to every single word, so that the layman barely sees through here. A freelance consultant has the experience and expertise to validate such a deal.

It is easier if a loan and a residual debt insurance are a mutually economic business. Here, the revocation clauses always have to refer to the other contract –
– otherwise they are not valid and it is easy for the insured and the borrower to revoke the contracts. An indication that the right of withdrawal has not been written in accordance with the statutory provisions is, if the following point is missing: If there is an instruction that the bank repays the premium for the end-of-school insurance in the event of a loan cancellation, the revocation is easy. In general, it is also advisable to have an independent expert check the individual clauses.

Immoral contracts

If the costs for the loan contract and the residual debt insurance are too high, you can make the contract immoral. It is also easy to revoke here. The offense of immorality occurs when the following criteria are met: According to BHG, the state is given if the effective interest rate exceeds the interest rate by 100 percent, which is common in the market. If it is twelve percent higher than the market rate, the loan agreement can be considered immoral.

One disadvantage is that the BGH did not take into account the residual debt insurance until now when assessing the interest rate. This was due to the fact that the jurisdiction for immorality examination referred to constellations in which the residual debt insurance costs amounted to only one or two percent of the loan amount. However, the reality is often different, because the premiums often increase the cost by 20 or even 30 percent, if you take out a consumer credit and residual debt insurance. Today, the courts usually judge the consumer in such cases. It is assumed that the institutions therefore act immoral, because the insurance primarily serves the interests of banks.

A judgment of the regional court Bonn created clarity: in the year 2007 it judged that in the calculation of the effective interest rate the contributions to the remaining debt insurance must be considered, they should make a large part of the loan amount. The Higher Regional Court of Hamm came to the same conclusion in the same year that immorality exists if the premium deviates significantly from the market rates.

Consumers who can prove their immorality to your institute enjoy special advantages. In this case, the bank undertakes to provide the capital interest-free for the entire time used. All parts that exceed the net amount can be used here. In the case of a general immorality of the residual debt insurance, the insured persons are paid premiums, so that they receive enormous cost advantages. It is advisable not to follow this path without legal assistance. An independent appraiser is the first point of contact because he knows the relevant court decisions and reviews the relevant clauses.

Conclusion on residual debt insurance for loans

The conclusion of a residual debt insurance is often useful and comes in many cases in question. However, such insurance is unnecessary and expensive if the insurance contract was closed in an indecent manner. Thanks to the current legal situation, consumers now have several options for revoking the contract and, if necessary, choosing a more attractive tariff. This nonsensical contributions are effectively avoided and saved. Unfortunately, it turns out that most of the current contracts are overpriced. Savings are conceivable through rescheduling and other measures. In any case, the advice of a free, independent expert is advisable both before concluding the contract or when requesting a revocation. He checks the relevant clauses, compares offers and helps with the constitution of the revocation.

Credit scoring: what does that mean?

What does the Schufa Score mean?

Banks and companies have a reasonable interest in having their loans repaid as agreed. At the same time, they also want to be able to inform the customer as soon as possible about a decision on lending. In order to reconcile both wishes, mathematical approaches have been developed, which are supposed to give an estimate of the likelihood of a loan default based on statistical methods. The individual calculation methods differ from company to company. In the end, however, a number always comes out: the so-called credit score. Depending on the scale used, this can vary. Basically, however, the higher the score, the lower the probability of default of a loan.

 What does the Schufa Score mean?


  • 1 Internal and external credit scoring
    • 1.1 How does Schufa determine the credit score?
  • 2 What can one do to increase the credit score?
  • 3 Which factors are bad for your own credit scoring?
  • 4 What is the difference between credit score and credit rating?
    • 4.1 Will my data be deleted at some point?

Internal and external credit scoring

The companies use a variety of data to assess the creditworthiness of a customer. These include, among other things, self-disclosure about income and expenditure. Added to this are the experience gained from business relationships in the past and publicly available documents such as entries in public debt directories. How these different factors are weighted varies according to the algorithm used. In any case, at the end of the process, a first internal score is created. Of course, this represents only a part of the business relations of the applicant. It is thus possible, for example, for a customer to repay one bank regularly and reliably, but more often to default on installment loans from companies.

To secure your own credit score, you can therefore call in an external score. This is usually determined by a credit agency and should also provide information on how likely a loan will be repaid. The best-known provider in the German market is the protection association for general credit protection – in short: SCHUFA. By merging the external and internal scores, the final assessment is created, so to speak. A low value does not necessarily lead to a rejection. It is also possible for the lender to offset the risk with higher interest rates. Incidentally, this applies not only for credit inquiries at the house bank or in a local bank branch, even if loans are compared online via platforms such as , the requested lenders initially secure and try the credit scoring of the potential borrower analyze.

How does Schufa determine the credit score?

The protection association for general credit protection is a private company that receives information from around 8,500 contract partners in Germany. These include banks, leasing companies, telecommunications providers and online retailers. When concluding a contract with these companies, the customer usually agrees to a Schufa clause. From then on, all relevant actions will be shared with the credit bureau. In practice, it is therefore relatively difficult to prevent data from being passed on to the protection community for general credit protection. Even those who pay their purchases always in advance and in cash, must expect that the credit agency knows where he opened his current account.

Finally, the protection community calculates a score from all the data collected and in turn shares it with its contractual partners. Ideally, these provide an overview of all business transactions of the customer. How exactly the credit score is calculated, however, is not publicly known. Only the state supervisory authorities and the responsible data protection officers gain insight into the exact algorithm. But everyone has the right once a year to receive a free data overview from the credit agency. As a rule, one can then imagine which entries have had a positive effect on the Schufa score and which ones rather negatively.

What can you do to increase the credit score?

What can you do to increase the credit score?

A low credit score leads in the worst case to a rejection of a loan request, or at least to unnecessarily high costs. However, consumers can use certain behaviors to ensure that the score rises again in the long term. For example, the following measures are conducive to a positive assessment:

  1. Serve loans and payment obligations on time.
  2. Avoid unnecessary small loans and in case of doubt pay directly in cash.
  3. Resistance in financial matters. Those who remain loyal to their bank for a long time and do not change their place of residence too often are considered reliable.
  4. Use credit only in exceptional cases. This is intended for short-term overdrafts and should not be abused as a permanent loan.
  5. Cancel superfluous loans and credit cards.

Of course, improving one’s own credit score is a long-term project, but it may well be worthwhile. But it is important to start in time. Those who first look after their credit score when they need a loan are usually late. Conversely, if you pay your bills on time and always have a certain level of liquidity, you do not have to be afraid of the credit score. On the contrary: this then rather ensures a faster processing of the loan application and in the best case even for lower interest rates and a simplified use of credit.

Which factors are bad for your own credit scoring?

As different as the individual scoring procedures may be, in all cases, those who do not meet their payment obligations must expect a devaluation of the score. This applies not only to loan installments, but also, for example, to direct debits or longer-term contracts, to loans, loans and, of course, to instant loans. Of course, not every failed debit is reported immediately, but the risk should be avoided. In plain English: either provide for a cover of the account or avoid long contracts and direct debits if possible. The creative tapping of sources of money with the help of several credit cards or syndicated loans also leads in the long term to a devaluation of creditworthiness. All of these things have influence on themselves, of course.

More difficult is the so-called geoscoring. Because the credit reporting agencies in Germany are allowed to also use geographical information. Specifically, this means that who lives in an area in which it comes increasingly to bad credit scores, must also expect a devaluation – even if he himself has not come to debt. The companies assure that they only use this data in an emergency, if nothing else is available. However, since the actual algorithm is not published, this claim can not be verified. Frequent changes of place of residence also lead to a worse value in the context of geoscoring.

What is the difference between credit score and credit rating?

What is the difference between credit score and credit rating?

In everyday life, the two terms are often used interchangeably, but in fact they are different. By credit rating is meant the result of the verification of self-disclosure. So if you have a high income, few payment obligations and no current loans, you will get a positive assessment here. In a sense, this is the basis for determining the internal score. This is only part of the final credit score. Then there is the external score, which is determined by credit reporting agencies. This may well deviate from the initial assessment made.

Because, of course, people with high incomes can live above their circumstances, which then inevitably leads to financial difficulties. In the long term, this ensures a low credit score, although the self-report analysis actually looked very good. The assessment of customer creditworthiness is therefore only a first step in deciding on a loan. She also has something like a bouncer function. Loan applications, which already fall through the grid during the examination of self-disclosure, are only rarely examined in detail, but mostly rejected directly. Then a fundamentally high credit score does not really help.

Will my data be deleted at some point?

Negative entries that lead to a bad credit score, however, will not last forever. Anyone who had to pay for a payment at a young age would not be punished for life. Rather, an entry about non-contractual behavior is usually deleted after three years. However, if claims remain outstanding, the deadline will be extended to four years. Information about a loan received will also be deleted exactly three years after the payment of the last installment. Often times alone helps to improve the credit score – provided you do not worry for new negative entries.

However, one exception is undeniably false entries. These must be deleted immediately. It may therefore make sense to request an annual compilation of the collected data and to examine them. If it can then be proved that an entry does not correspond to the facts, it will be deleted. If there are disputes – for example, because crucial documents are no longer available – an arbitration board can also be called. The Ombudsman’s decision is then binding on the credit bureau. For citizens, the path to a decent court remains in the event of a negative outcome, which is usually associated with high costs and low chances of success.