Anyone who owns a car knows what it can cost. Think of insurance, the parking space in the garage, or repairs that are due. Car repairs in particular can cost a lot. The costs are then not to be paid from the current budget. Often the loan for a car repair seems to be the only way out. The customer can find credit from the many branch banks, but also from the direct internet banks.
Credit broker can be a solution
Many customers lose track of the Internet when looking for a car repair loan. As a way out, a credit broker could be the solution. He will take over the entire credit process so that the customer only has to provide the necessary credit documents. The house bank can also be the contact point for a loan. Experience has shown, however, that the conditions there are not as good as with the banks on the Internet.
The overdraft facility would also be a way out as a loan for a car repair. Banks provide this loan to their solvent customers who have regular income. The amount of the overdraft facility is based on this income. If someone earns 2,000 USD net, the overdraft facility could be 6,000 USD. However, the overdraft facility is very expensive. It has a double-digit interest rate level, some banks charge up to 15%. Therefore, this loan should only be used for a short time.
The better solution is a small loan that every bank offers. For many people, the car is not a luxury object but a purely functional connection. Sometimes the train or bus connections are so bad that many cannot appear at work without a car. One also thinks the use of the car in the family area. The children are driven to physical education or have a long way to school, which can only be done by car. The car must therefore always be ready for use.
The majority of consumers have no difficulty borrowing. The income is sufficient, the Credit Bureau without negative entries and the job is not temporary. So the best conditions for a loan for a car repair. If the creditworthiness is good, the customer can also expect a good interest rate. So the loan remains affordable. But a loan for a car repair can not only be taken out through the bank. Many dealers also offer financing for repair costs.
A credit comparison should be used so that the solvent customer also gets a really cheap loan. So he sees not only the effective annual interest rate, but also all terms and conditions of the banks. The focus should not only be on the interest level, because special repayments are important. In this way, unexpected cash receipts or premiums from the employer can flow directly into the loan without the bank being able to calculate a prepayment penalty.
The type of loan will probably depend on the amount of the repair costs. Sometimes it is only a few hundred USD that could be financed through the overdraft facility. If the customer’s economic situation is intact, nothing stands in the way, since he can quickly repay him. The overdraft facility should be used in such a way that it is always positive with a monthly salary or two.
The repair costs
The repair costs should actually be in proportion to the value of the car. Will it be a bill of a few thousand USD, so should it be considered if it is an old car, is the repair still worth it? Buying a new car might be the better option. It doesn’t have to be a higher-priced car, there are very good used cars that don’t cost that much. But that’s up to the customer.
Of course, the credit rating must be right for every form of credit. That is the income on the test, the Credit Bureau should have no negative entries and a permanent job should exist. If the customer can meet these conditions, the loan for a car repair is no longer an issue.
Anyone looking for a loan online will see the most adventurous advertising for a loan. Without income, in bankruptcy, with a garnishment of wages with a Credit Bureau that contains several negative entries. But common sense already says that this is nothing but hot air. However, there are definitely loans that can be arranged even with poor Credit Bureau.
These loans come from abroad, where the Credit Bureau is not known. But these banks take a look at the public debt register or the ZEK. There are noted the hard negative features such as attachments, bankruptcies, loan cancellations, affidavits. All of these are absolute reasons to exclude a loan for a car repair.
However, if the customer can present a sufficiently high income that is above the garnishment-free limit and has a garnishable portion of at least 100 USD, it can also prove permanent employment. The customer must be of legal age and resident in Germany, as well as his checking account. If you cannot fully meet the conditions of the banks, you can increase your credit chance by appointing a second borrower. This must be solvent, ie have a sufficient income, a clean Credit Bureau and a permanent position.
If you do not have the right overview to find a loan for a car repair on the Internet, you can hire a reputable credit broker. Although he receives a commission, the customer only has to send the necessary credit documents such as proof of salary from the last three months, account statements from the same period by post. He also has to carry out the Postident procedure at Swiss Post. This is nothing more than an identity check based on a valid ID card.
The customer should also know that a small loan in particular does not have to be taken out with various types of insurance such as residual debt insurance. The loans are also available without. The Credit Bureau-free loan should only be used in an emergency because it is very expensive. In addition, only small loans are approved, such as 3,500 USD, 5,000 USD or 7,500 USD.