Car loan what do I need – it’s that easy online

Income is an important licensing factor. This is demonstrated by proof of income from the past few months. More of this story:

With a car loan what I need, the credit bureau is also queried. An open-ended employment contract is also important.


Car loan what do I need – financing

Car loan what do I need - financing

Many consumers cannot pay for a new car or a used car in cash and opt for car financing. If a loan is taken out from the bank, the bank often requests the vehicle letter as additional security.

Car loan what do I need – it’s that easy online

However, the car is the property of the bank throughout the credit period. The disadvantage, if the customer wants to sell the car because, for example, it is in a financial bottleneck, he cannot.

The other way to finance your car is to get a car dealer loan. Even if this entices with very favorable interest rates, a loan comparison should be made to determine whether the loan from the dealer is really that cheap.

If the car buyer buys his car and pays cash at the dealer, the discount granted may exceed the interest savings.

What do I need for a car loan – when is a car loan useful?

What do I need for a car loan - when is a car loan useful?

When it comes to car loan what do I need, there is also the question of financing or cash payment. Many borrowers would be able to pay for a car in cash. They built up reserves and often invested well for years. However, experts advise that it is better to finance the car purchase than to attack the financial reserves. That may go well for a year. But then other unexpected purchases come and the reserves are gone.

The consequence of a further loan has to be considered. The overdraft facility is often also overdrawn if it is a small purchase. However, if he finances his car, his financial independence is preserved. Especially in view of the fact that a car loan can be granted at particularly low interest rates.

Which loan amount makes sense

Which loan amount makes sense

In addition to the question about car loans, this is what I need the most common question. Before a loan application is made, you should first calculate. The offers of the auto industry, but also those of the banks, are very tempting. If you believe these advertising messages, car buyers almost get the car for free.

The buyer will find that this is far from the case when he asks for financing. In addition to the question of car loans, what do I need, but there should also be the question of what I can afford. Therefore, all earnings should be listed first. The expenses are set against this, but should also include everything. From the contributions to the children’s sports club to the rent. Car buyers should make sure that car financing can be provided with a salary if possible.

If a couple takes out the loan together and one of the partners loses their job, the previously agreed high loan amount can no longer be paid.

Pay attention to flexible framework conditions

Pay attention to flexible framework conditions

Anyone who takes out a loan, whether car loan or other financing, should make sure that their credit remains flexible. This includes special repayments. The financial situation can always change over time. That can be positive but also negative.

If unemployment or a serious illness occurs, a downward change in the credit rate could make sense. Rate breaks should also be noted in the loan agreement. However, the financial situation can change for the better. Insurance is paid out or the employee receives bonuses from the employer.

These amounts could then be paid into the loan, which in turn ensures that the car loan is paid off faster. It is also important to pay attention to the corresponding term. If you opt for a long term with low rates, you pay more for your car loan. With a short term with high installments, the loan is paid faster.

If you cannot pay high installments, three-way financing could be an option.

Car loan what do I need – the consequences of not paying

Car loan what do I need - the consequences of not paying

There are often signs when a financial bottleneck is in the offing. First installments are difficult to pay. First bills are pushed back and forth and sorted according to urgency. Anyone who is in such a situation should immediately seek a conversation with the bank.

Lowering the credit rate could solve the problem. To do this, the term would then have to be extended. If the car was used as collateral, the bank could reclaim it if there is a loan default. That is why quick action is important.

Car loan what do I need – documents for an online loan

Car loan what do I need - documents for an online loan

Actually, the required loan documents are always the same. Information about the bank details is required with account number and bank code. Income is proven on the basis of salary slips from the past few months. Bank statements from the same period are often required.

The self-employed must submit income tax assessments from the past few years or a business interpretation. A budget listing all expenses, including maintenance payments. Also a list of existing liabilities such as loans or installments. Some lenders also require a copy of the employment contract or pension notice.

Customers must generally be of legal age and have a permanent residence in Germany. The income must have a attachable portion and should not be pledged.

The clean credit bureau is very important.

Credit with temporary agency work

Many companies employ staff from temporary employment agencies. This saves you the incidental wage costs yourself and you do not have to pay holiday pay or Christmas bonus. This item of personnel costs is already noticeable, even if the temporary employment agency demands a high hourly wage. For the employee, working in a temporary employment agency means a permanent job, which also affects a loan approval. In contrast to temporary contracts, temporary work is not limited.

Loan with temporary work

Loan with temporary work

Many employment relationships have arisen from a temporary employment relationship. It is not uncommon for temporary workers to be recruited from the companies they once helped out with. The temporary employment agency can also prove to be a career springboard for employees. Temporary work is not a problem for the banks. It is a job like any other, only that the area of ‚Äč‚Äčapplication can change constantly. The bank doesn’t care. What is important is the unsigned employment relationship, everything else is of no interest.

The income situation is important for a loan approval. It must be ensured that the borrower can also afford it based on his salary or wages. The bank therefore compares the income and expenditure and checks whether, after deducting all monthly expenses and the installments for the loan, there is still money left to make a living. If this is not the case, a credit refusal can occur despite a good credit rating.

If the temporary work is only limited

If the temporary work is only limited

Unfortunately there are also temporary employment agencies that only hire their employees for a limited time. If the work in the loaned company is completed, the temporary employment contract also ends. In these difficult circumstances, a loan with temporary work is not possible, because many of those affected are back on the street afterwards. A temporary agency loan is only possible with an open-ended employment contract and after the end of the trial period.

Where can I get a temporary agency loan?

Where can I get a temporary agency loan?

In addition to the classic models via branch banks or online banks, there is also the Smava portal. It is an association of private individuals who lend money. The interest is then your profit. Here it is entirely possible that a temporary worker with a fixed-term contract will receive a small loan, which must be repaid within the limited employment relationship. An inquiry is free of charge.

Gold loan: solutions and best banks

This type of loan has very special characteristics, both because it addresses a very specific type of customer and because instead of making a sum of money available, a good is physically delivered, which is represented by gold, understood as raw material .

Those who can access this type of loan are therefore those who transform and market gold, who will obtain the delivery of a certain quantity purchased and owned by a bank, so as to be able to transform and market it.

Characteristics of the loan for the use of gold

Characteristics of the loan for the use of gold

The person who requests it can choose two methods of repayment . The most usual means that the bank delivers the gold, which remains its property (therefore without invoicing but with the accompanying delivery of the goods through the issuance of a transport document). Therefore, the beneficiary must return both the interest provided for in the contract and the return of the same amount of gold received through the loan at the due date (generally following the quarter following the loan).

The other method of restitution always provides for the payment of the interest provided for in the contract, but instead of returning the equivalent of the gold obtained on loan with other gold, you pay the sum corresponding to the bank by effectively becoming owners of the gold. In this case the bank must provide for invoicing.

Normally, in spite of the particularity of the loan, the basic logic is that of opening a credit line , with the granting of loans of this type up to its capacity (with the return of gold it is restored in whole or in part the credit line for the returned value). There are many banks that offer this kind of loan, the conditions of which can generally vary.

Banks that provide this type of loan

Banks that provide this type of loan

  • Among the banks that are part of the “popular” is the Best bank , which provides for the availability of 1 kg  but on request also bars of 12.50 kg ;
  • The MPS provides a wide choice, and a system of fixed costs (equal to 50 USD) for the lighting, the extension and the operations of returning the gold, in addition to the calculation of the interests;
  • Unicredit provides for the calculation of interest numerous maturities, with different amounts, and fixed management costs ranging from a minimum of 15 USD (practical opening) to a maximum of 49 USD for the related closure.