What is credit and why is it important?


You may have heard or read the term “credit” when researching a credit card or loan. Credit plays a major role in app approval. The name sounds pretty self-explanatory – creditors describe how much credit you are worth. More specifically, credit is used to describe the likelihood that you will default.

How do lenders determine credit?

How do lenders and lenders determine credit?

Your creditworthiness is based on how you handled your credit and debt obligations up to this point.

Lenders can be told how well you managed your previous credit obligations by looking at your credit report, which is a record of activity in your credit accounts. Credit reports can be dozens, sometimes even hundreds, of long pages and a very long time to review. Instead of reviewing a complete credit report to determine your creditworthiness, creditors and lenders use credit scores, which is an objective measure of your creditworthiness based on your credit report information.

The credit score is a three-digit number, often ranging between 300 and 850. The higher your credit score, the more “creditworthy” it is. This means you are more likely to repay your debt obligations on time. The more credible you are, the more creditors and lenders are willing to approve your applications and give you a lower interest rate.

How often you pay your bills on time is the biggest factor affecting your credit.

Recent delays and other delinquencies can impair your creditworthiness and, as a result, make it difficult to approve new credit cards and loans.

Your credit is also affected by the amount of debt you carry. For example, high credit card balances can make it difficult to approve applications.

The best habit for credit is to keep your credit card balance below 30 percent of your credit limit and pay off your loans. Minimize your new loan applications, just sign up for new items as you need them.

Credit between various lenders and lenders

Credit between various lenders and lendersCredit between various lenders and lenders

What is considered creditworthy may vary depending on the type of account you are applying for. Generally, the bigger the debt you take on a payday loan, and you have to be. For example, mortgage lenders have higher credit standards than credit card issuers.

You can get approved for some credit cards with a lower credit score. On the other hand, you may have difficulty getting approved for a mortgage or a car loan with a lower credit score.

How can you improve your credit?

How can you improve your credit?

Keeping track of your credit score is the best way to stay on top of your credit.. These services give you access to your credit score as well as tips on improving your credit score and your credit score.

If you have trouble getting approved for new accounts, you can improve your credit.

Basically, you have to prove to creditors and lenders that you are not in danger of not paying on your new loan obligations.

Start by keeping track of your current accounts and debt collections. If you can negotiate payment for deletion, the creditor will remove the account in exchange for payment. Even without the deletion fee, paying the bill will benefit your credit.

Create a positive payment history by making timely payments to your accounts. If you do not have active, open accounts, consider opening a secured credit card to add a new account to your credit report. By paying your secured credit card in a timely manner, you will improve your credit and your ability to be approved for other credit cards and loans.

Be prepared to make a bigger contribution to credit. You may be able to get a mortgage or car loan approval even without the best credit if you make a major contribution.

A higher payment reduces the amount of risk it has to give the lender.

Find a cosigner. Having a cosigner can also improve your chances of getting approved. This is if your copier is creditworthy. When someone agrees with you, they agree to be responsible for payments on your credit card or loan whenever you cannot make these payments yourself. Be careful when you have someone co-opt for you – a decline in your payments affects your credit and theirs.

Staying on top of your credit is important even when you do not have a planned credit card or loan application in the near future. Many other businesses, such as cell phones and cable services, also consider your credit worthiness. Keeping your credit in the best shape at all times means you never have to worry when a business needs a credit check.

How to get easy credit with Social Institute loans to pensioners

Subsidized loans for retirees

Subsidized loans for retirees

In addition to taking care of public administration pensions, the Social Institute Public Employees Management provides credit lines at advantageous interest rates. These are the so-called ex Government Agency loans, which allow access to even large sums which public pensioners can also access. So let’s see who they are and how to get Social Institute loans to retirees. http://www.alleycode.com/best-online-loans-for-bad-credit-so-easy-convenient-low-credit-loans-online/ has examples

Who can get the loans

Social Institute retirees ex Government Agency can apply for subsidized loans on condition that they meet the required requirements. Loans are divided into two categories: small loans and multi-year loans. To obtain the small loans, it is sufficient to be registered in the Unitary Management of credit and social benefits, this is the Credit Fund through which Social Institute disburses the former Government Agency loans.

For long-term loans, on the other hand, it is necessary not only to be enrolled in the unitary management, but also to be able to have at least 4 years of service life useful for the pension and a minimum of 4 years of contributions paid to the aforementioned management.

Loan amounts and repayment

Loan amounts and repayment

As regards the contractual conditions, Social Institute loans to pensioners are repaid with an amortization plan in monthly installments, directly deducted from the applicant’s pension. As for the contractual conditions, however, these vary according to the type of loan.

For small loans the duration can be annual, biennial, three-year or four-year. The maximum amount that can be financed varies according to the duration of the loan: in fact, for each year it is possible to obtain two average net monthly payments received by the applicant.

For example, a pensioner who receives a pension benefit of 1000 USD each month may apply for a small annual loan for a maximum amount of 2000 USD. The interest rate for small Social Institute loans to pensioners is always 4.25%.

The issue for multi-year loans is different, however, which allow access to sums of up to $ 150 thousand. The duration can be of 5 or 10 years, while the amount that can be financed varies according to the reason for which the loan is requested. The rate is 3.5%.

How to apply for a loan

How to apply for a loan

For both small and multi-year loans, the loan application must be submitted electronically. The application forms are available directly on the official Social Institute website, in the Forms section (path: “Home – Services and Services – All modules – Management of Public Employees – Registered/Retired – Credit and social benefits”).

As for sending the application, this must be sent electronically. Public employees must contact the Administration they belong to while public pensioners can use the special online service or contact the Social Institute Contact Center.

Loan simulation

We also remind you that on the official Social Institute website there is a service that allows you to perform online simulations. To reach it, it is necessary to follow the path: “Home – Services and Services – Management of public employees: simulation of calculation of small loans and multi-year loans”.

Debt restructuring for self – employed persons

Debt restructuring for the self-employed serves to replace an existing loan contract with a new loan. As a rule, the new loan contract is concluded with another provider who offers more favorable terms. But what should I pay attention to now?

Thorough information is essential

Thorough information is essential

It is important to know first of all whether debt restructuring makes sense for the self-employed in their own case. This is always the case when a short-term bank loan – for example, the current account overdraft facility – is to be changed to a long-term loan. Even if fixed interest rates for a current loan expire, the borrower can reschedule if higher interest rates are estimated. Be careful if there are prepayment penalties for the existing loan, because they can cause high costs!

Self-employed are the least popular customers

Self-employed are the least popular customers

Since the self-employed do not have a fixed income and also generally have an entrepreneurial risk, they are not the most popular customers at banks. Debt restructuring for the self-employed is therefore more difficult than for employees or civil servants. It is important for debt restructuring, especially for the self-employed, that they present their economic situation transparently.

Anyone wishing to effect the debt restructuring should therefore come up with conclusive balance sheets with the potential lender and also have a structured and promising future forecast. The more secure the economic situation of the company appears, the easier it is for the self-employed when rescheduling with the new lender. A clearly structured list of liabilities in the private sector as well as a profit and loss account of your own company are clear facts on which debt restructuring can be built.

Specialized providers

Specialized providers

The market is now reacting to the problem of loans for the self-employed. The result is that some providers have now specialized in this type of loan. Many direct banks, which do not necessarily have to be located in Germany, offer debt restructuring for the self-employed. It is important, however, that you as a loan seeker check the conditions carefully. Offers that are connected with upfront costs should be turned down immediately, because these are dubious free-riders on the market who only focus on collecting the processing fees, but do not seek credit brokerage. Reputable banks provide an offer that is conclusive and that is not linked to conditions and costs in advance of the loan.

Debt restructuring is also possible for the self-employed, albeit with higher hurdles. It is important to carefully examine the large number of providers, because the opening up of internal European borders has also increased competition on the credit market, which means that even the self-employed have real chances of getting the credit they want.

Payday loan comparison 2019 – cheap payday loans online

Interest on loans is cheaper than it has been for a long time. Take the opportunity now and secure your cheap payday loan directly online.

Whether it is overdraft facility compensation, a new car, the financing of long-cherished wishes or the repayment of expensive loans, the payday loan is ideal. The loan amount and term can be flexibly combined so that the fixed, predictable rate fits optimally into the monthly budget.

What is a payday loan?

What is a personal loan?

The payday loan is a conventional installment loan that is applied for from a bank and used for any private purpose. The payment is linked to a fixed term and the repayment is made in constant monthly installments. Depending on the bank, loan amounts of between 500 and 75,000 USD are available and borrowers can choose between twelve and 84 months for the term of the contract.  

Credit comparison provides an overview of the supply jungle

Credit comparison provides an overview of the supply jungle

The biggest problem when looking for a suitable loan is the growing variety of offers. You can take out loans online or at a local bank branch. And even these two options offer dozens of variations. Instead of exploring the countless ways in laborious small work, a payday loan comparison is the better choice and is also recommended by the consumer advice centers. The offers for payday loans can be compared quickly and easily in this way. Depending on the loan amount and term, you can immediately determine the expected interest charge and the monthly rate. This procedure not only provides an initial overview, but ultimately also saves money – because this way, the risks of overpricing can be reduced in advance.

Requirements for a positive credit decision

Requirements for a positive credit decision

In order for a payday loan to be granted at all, conditions apply that are the same for almost all banks. Basically, if you do not have a credit rating, you will not get a loan. The creditworthiness can be on the one hand in the income or in the collateralization with assets. Another option would be to provide a guarantor who is liable for the loan amount if the repayment fails to materialize.

The applicant must be of legal age, have his main residence in the Federal Republic of Germany and have an income. For employees, pay slips are sufficient as proof, for self-employed or freelancers, for example, business evaluations must be sent as proof of income (in general, however, it is more difficult for the self-employed, as their income is not constant and secure). As a rule, you must not be over 65 years old and have no negative characteristics in your Credit Bureau file. If these conditions are met, the first threads for the desired loan can be drawn from the payday loan comparison by informing yourself about the conditions.

Apply for payday loans in just a few steps

If you have decided with the help of the comparison, which providers you want to get offers for payday loans, there are only a few steps. A loan calculator that almost all banks offer can be used to select the loan term and the sum. When submitting the application, personal data and information on the financial situation, in particular on income, are then collected. This data, which is of course treated with absolute confidentiality, leads to an immediate, non-binding commitment. Once all the documents have been checked, you receive the offers and can then decide with whose help you want to open the door to your personal wish privately.

To reschedule credit (s)

To reschedule credit (s)

Balance current account – reduce rate burden – save interest costs – reorganize liabilities

Lending rates are currently record-breaking low, which also makes debt restructuring interesting. Borrowers can thus replace expensive loans – even several – with a new and cheaper loan and thus save considerable interest. In addition, the monthly financial burden is tidied up when there is only one installment to pay instead of having to service several installment loans in parallel.

Banks take high interest rates of 10 percent and more, especially for overdraft facilities. If this is overdrawn, it goes into the money. Debt restructuring through a payday loan offers considerable savings potential.

Further information: Debt restructuring »

Credit from private

Credit from private

As an alternative to the normal installment loan, it is now also possible to request a private loan online. This is done through special marketplaces.

With this type of loan, it is not banks but private individuals who make the money available for the loan. Unlike the conventional payday loan, which is available for free use, you have to specify and describe the purpose of the loan – the so-called loan project – for private individuals. In addition, the borrowers determine the interest rate themselves. If this is set too low, it is difficult for private donors to invest in the loan project.

With good to average creditworthiness and a Credit Bureau file without negative entries, a payday loan via the credit comparison is usually cheaper than a payday loan. The self-employed and freelancers, on the other hand, have a better chance of obtaining a loan through a credit marketplace.

8000 USD credit cheap loans

An 8000 USD loan is usually easy to take up since it falls into the area of ​​small loans. Since small loans are not earmarked, they are ideal for almost any loan requirement. Even with a relatively low income, an 8000 USD loan can be approved by a bank if the term is chosen accordingly so that the loan can also be easily transferred.

Small loans compare

Small loans compare

It is worth comparing small loans in particular, because both banks and credit intermediaries offer interesting offers in this area. For example, the Best bank starts with an 8000 USD loan with an interest rate of 4.29 percent to 9.99 percent, depending on the creditworthiness. With a term of 48 months, the monthly charge would be $ 181.38. Best bank is also known for a high acceptance rate, so the chances for the cheap dream loan are very good.

In addition to the Best bank, online loan also offers a cheap small loan. Online credit starts at an interest rate of 4.35 percent to 10.90 percent. The monthly charge here is $ 181.58 if a term of 48 months is selected and the cheapest interest rate can be claimed due to the good credit rating. These two providers are closely followed by Lite Lender, which offers an interest rate of 4.40 percent to 11.95 percent on an 8,000 USD loan. In the best case scenario, the monthly credit rate is $ 181.76. In addition to these three top providers, there are numerous other interesting offers on the market that are well worth a look.

Framework conditions must be met

Framework conditions must be met

In order to take out a small loan, some basic conditions should be met, otherwise the loan application will be rejected. All banks insist on a permanent employment relationship, which must be demonstrable. The employment relationship is considered a fixed employment relationship if it has existed for 6 months and is not limited in time.

Another point is that a residence in Germany must be demonstrably available. In addition, a loan application can only be made from the age of majority. In addition, there can be no negative Credit Bureau entries, since all providers carry out a Credit Bureau query and negative entries marked with done are considered grounds for rejection of a loan.

Credit for doctors cheap loans – compare and save

Around 80 percent of start-ups need financing. Your own money is often not enough to open your own practice and make the necessary purchases. Although the fee is sometimes very high, the costs are also very high and sometimes unaffordable. New devices for practice can quickly go into the 5-digit range. When applying for a loan, the bank always considers the employment relationship of the doctor.

Credit for Doctors – Self-employed Doctors

Credit for Doctors - Self-employed Doctors

Self-employed doctors, like freelancers or the self-employed, find it difficult to get a loan. When making a loan request, high demands are made that have to be met. The most important prerequisites that have to be met are permanent employment and regular income. This ensures that the loan for doctors is paid off on time. Since an independent doctor does not have a regular income, it is possible to take out a practice loan. There are special providers here that can be selected to take out this loan for doctors. Collateral is always an advantage to speed up the approval process from the bank. The bank can therefore assume that the loan will be repaid in any case.

Credit for Doctors – Salaried Doctors

Credit for Doctors - Salaried Doctors

Employed doctors have a much easier time getting a loan for this professional group than self-employed doctors. These receive a fixed income, which does not change every month. This enables the bank and the borrower to plan better and draw up a budget. As with almost all loans, this professional group may not have Credit Bureau entries. If this criterion is met, an application can be made without hesitation. Since there are many banks that grant loans to doctors in employment, comparisons should be made. Banks never work at the same interest rate, so the offers can be very different.

A comparison not only filters out the best conditions, the borrower also receives valuable information about the conditions and special repayments. Employed doctors and those who work independently can also take advantage of a complete package. A loan for doctors is taken out and life insurance is taken out at the same time. With this insurance, not only the doctor can insure himself, but also his family, who does not have to pay installments when the borrower can no longer pay.

Low Interest Rate Loan | Secure the cheapest


A low interest rate loan is now easier than ever to find. The interest rate level of many banks is currently lower than ever, so interested borrowers can benefit from very cheap loan products with little effort. Loans that can score points with low interest rates are now mainly offered by the numerous online banks on the Internet. The online banks on the Internet often do not have their own branch network and low personnel costs, so they are more willing to pass on loans to consumers at favorable terms.

Find low interest rate loan and save a lot of money

Find low interest rate loan and save a lot of money

When looking for a low-interest loan, consumers are inevitably confronted with debit and effective interest rates. The borrowing rate is the adjusted interest rate, which is used by many banks exclusively for advertising purposes. The borrowing rate is significantly lower than the effective borrowing rate, which can be attributed above all to the fact that the borrowing rate also takes into account other cost factors that arise when borrowing.

The effective interest rate takes particular account of the borrower’s creditworthiness. Borrowers with a positive credit rating pose a lower risk, so banks are willing to offer the loan on more favorable terms. The term, repayment and the loan amount are also no less important. Loan amount and term are risks that are difficult to calculate, the higher the loan amount and the longer the term, the higher the risk for the banks. If you want to secure the cheapest interest, you should use a small loan amount and a short term if possible.

With regard to the creditworthiness of the borrower, it should be mentioned that a regular income is a basic requirement. Many banks still obtain Credit Bureau information about this today, with which the banks want to obtain information about the payment behavior of the borrower. If you have a negative Credit Bureau, you will never be able to get the lowest interest rate on a loan with Credit Bureau, for these people a loan without Credit Bureau is recommended.

Find low interest rate loan by online comparison online

Find low interest rate loan by online comparison online

By comparing credit online, consumers can find the most affordable loan offer. If you are looking for a loan with a low interest rate, you can now compare it to a loan calculator on one of the numerous financial portals. The comparison is free of charge, quick and easy and anonymous. In addition, a comparison with a loan calculator allows individual information: duration, repayment, usage, etc. to be taken into account. Precise comparison results make it possible to permanently reduce the interest rate and save a lot of money.

Child benefit loan | Paid from the month of birth


Child benefit is a basic provision for all children who live in Germany. It is paid from the month of birth. Since the last child benefit increase in 2010

  • 184 USD for the first and second child
  • 190 USD for the third child
  • And paid 215 USD from the 4th child.

A child benefit increase is not in sight until 2016 at the earliest. Child benefit plays an important role in borrowing because it increases the chances of success with a child benefit loan.

Child benefit is paid regardless of income

Child benefit is paid regardless of income

Income plays no role in the amount of child benefit. Many parents continue to work after birth, so child benefit means an increase in income. This also has an impact on the financial transactions, because a loan with child benefit also has a chance of success. It becomes more difficult if the parent or one of the parents does not go to work and the spouse’s income is not high enough. Child benefit can lead to the fact that, in case of doubt, a loan is approved if the decision was previously shaky.

A loan is dependent on income

A loan is dependent on income

In the credit decision, the income is very important. It must at least exceed the garnishment exemption limit, which is around 1020 USD. The further over the income, the more likely a loan approval will be. The child benefit increases the monthly income significantly. As a result, a loan decision is made in favor of the couple and a loan with child benefit is approved. The only requirement is still the Credit Bureau: If there are no negative characteristics, nothing should stand in the way of a positive credit decision.

Child benefit and unemployment

Those who receive ALG I and Hartz IV cannot hope for a loan approval. Neither a bank in Germany, nor a financial institution in Switzerland or Liechtenstein give a loan to the unemployed. The economic situation is too uncertain. Child benefit doesn’t make sense either, because a child benefit loan is not an option for unemployed people.

Child benefit loan for self-employed and freelancers

Child benefit loan for self-employed and freelancers

Self-employed people and freelancers find it difficult to get a loan anyway. Due to their uncertain financial situation, many banks cancel in advance. But child benefit can also increase the chances here, because it is added to the income. In this case it is more likely to find a bank that is willing to help financially. Private money markets are another option. Here private individuals also lend their money to self-employed and freelancers with child benefit.

Calculate loan debt restructuring

Debt restructuring guide

Debt restructuring is intended to replace an existing loan or to combine several loans with a new installment loan.

Reasons for debt restructuring

Reasons for debt restructuring

The reason for a debt restructuring measure is that the borrower wants to use the new loan at a lower interest rate than the one that he has to pay for the existing loan. The reason for this wish is usually that the general interest rate level has dropped so much that the debtor pays significantly less interest than before with the debt rescheduling.

Benefits of debt restructuring

Another reason for rescheduling may be that the borrower has to service several loans and would like to combine these loans into a new loan. In this way, he can reduce his overall burden and then only serves the one new loan. By paying a single loan installment, he also reduces his administrative workload, since he only has to serve one bank.

If several loan commitments have accumulated over the years, there is a risk that the borrower will be overwhelmed financially. If he is no longer able to service a single loan, he can risk the collapse of his entire credit exposure by terminating this one loan and the resulting negative Credit Bureau entry.

Impact of debt restructuring – disadvantages

The debt can be rescheduled through the previous bank. The borrower can also apply for a new loan from any other bank. However, he has to reconsider to what extent the debt restructuring actually brings financial benefits. If he repays an existing loan, he must expect to pay the bank a prepayment penalty for the previous loan. In addition, mortgage loans incur costs for the transfer of land charges to the new bank.

Loan notice periods

Loan notice periods

Inexpensive debt restructuring requires some time planning. It is readily possible when the fixed time of an agreed interest rate expires. Then the borrower can either make a special payment and reduce his debit or redeem the entire remaining loan by means of debt restructuring without incurring any costs on the part of the bank.

Notice periods for loans with variable interest rates

Loans with a variable interest rate are an exception. Here, the notice of termination can be given with a notice period of three months, so that debt can be rescheduled at short notice without any disadvantages.

Notice periods for simple installment loans

Simple installment loans can be terminated for the first time 6 months after payment with a notice period of 3 months. There will then be no prepayment penalty. However, the bank does not have to reimburse any processing fees and may request reasonable compensation for processing the termination.

A new regulation applies to installment loans that are concluded after June 10, 2010. The borrower may repay this early at any time, but the bank may request prepayment penalty. It is limited to a maximum of one percent of the early repayment. If the remaining term is less than a year, it may only be half a percent.

Which loans can be rescheduled

Which loans can be rescheduled

The debt restructuring can relate to any type of loan. It only depends on the period for which the interest rate is fixed.

Overdraft facility on the checking account

If the current account is in the red with a usually extremely expensive overdraft or overdraft, the account holder can reschedule at any time. There are no notice periods. Debt restructuring almost always makes sense here, especially because an installment loan is always cheaper than overdraft facility.

consumer credit

In the case of installment loans, which serve consumer purposes and mostly exist without collateral, and in the case of mortgage loans, the fixed interest period must be taken as a basis. The bank’s compensation claim associated with the termination determines the economics of rescheduling.

Debt rescheduling

Debt rescheduling

As a lender, the bank will not readily grant a debt rescheduling within an interest rate-fixing phase of a real estate loan. Here, the borrower must agree a termination agreement with the bank, which sets out the conditions for early termination of the current credit agreement. The situation can be illustrated using an example:


A borrower serves a loan of .$ 100,000 with a fixed interest rate of ten years. He effectively pays 6% interest, i.e. .$ 6,000 annually plus repayment. After six years, interest rates drop and another bank offers him the loan for 4% interest. He would save .$ 2,000 annually and, with a remaining term of his existing credit contract of four years, almost .$ 8,000 in interest and would like to reschedule.

In the event of early termination, the bank will refer to its interest loss. This arises from the fact that the bank could only resell the capital received from the borrower as a result of debt restructuring at an interest rate of 4% and, taking into account the remaining term of the loan contract of four years, would lose this .$ 8,000. It relies on the fact that the agreed credit contract must be complied with as a contractual agreement and cannot be terminated without further notice.

The same case arises if the borrower wishes to make a special repayment that is not provided for in the contract in the fixed rate phase. Here, too, the bank would have to forego its interest income.

Early termination right when selling the property

Early termination right when selling the property

The case law has regulated the problem in such a way that the borrower can terminate a mortgage loan prematurely if he wants to sell the property. The reasons for this are irrelevant (illness, divorce, unemployment, favorable opportunity to sell). The bank has to agree.

The courts justify this view by saying that otherwise the borrower’s economic freedom of action would be restricted too much. To the extent that the borrower is only interested in obtaining a lower interest rate from the same or another bank, the bank does not have to agree to the early termination of the contract.

Calculation of a prepayment penalty

If the borrower can agree with the bank about an early termination of the contract, the bank will demand a prepayment penalty. It is regularly the subject of controversial disputes and keeps the courts busy.

According to case law, a bank can use two methods of calculation:

It can calculate its interest loss based on the refinancing costs, i.e. how much money it will lose when it invests the freed-up funds in fixed-income securities.

Alternatively, she can calculate her interest rate deterioration damage, which she will incur if she lends the capital from the loan contract of her terminating customer to a new borrower on poorer terms at lower interest rates.

Weighing up between prepayment penalty and continuation of the existing loan agreement

In general, the prepayment penalty has a higher impact, the more interest rates have fallen since the loan agreement was concluded and the longer the fixed interest rate on the loan has been running. The borrower who wants to reschedule must therefore offset the prepayment penalty against future interest savings and determine whether he actually drives cheaper.

Finally, he has to add the amount of the prepayment penalty to the remaining debt. His loan amount increases. Generally speaking, debt rescheduling is only worthwhile if the interest rate differential is at least 0.25%.

It may be cheaper to continue the existing loan agreement until the end of the fixed interest period. Even those who want to make a special repayment must consider whether it is cheaper to pay this amount into an interest-bearing investment and only to bring the capital into the existing loan agreement after the end of the fixed interest period.

Cost aspects when entering into a new loan agreement

Cost aspects when entering into a new loan agreement

The borrower must also note that he often has residual debt insurance for the existing loan. If this is also canceled prematurely, it must be clarified that at least the unused portion of the premium payment will be reimbursed.

Furthermore, he has to reckon with the costs of a new residual debt insurance for the new loan agreement. The premium increases with age. Notary fees and land registry fees apply to transferring a land charge to a new lender.

Debt restructuring requires continued positive creditworthiness

Debt restructuring requires continued positive creditworthiness

If the borrower wishes to terminate an existing loan agreement, he must take into account that the bank will re-examine its economic situation in order to determine the creditworthiness. If these have worsened or there is even a disadvantageous entry in the Credit Bureau, he risks waking sleeping dogs and jeopardizing his credit exposure.