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Few consumers can claim to have no debt and therefore no credit. The credit business is at home in all areas of the population. Whether rich or poor, loans make a lot of things possible and can make a difference. However, borrowers often lose track of their liabilities. One loan has been taken out too much and the loan installment can no longer be paid. A loan despite debt is a sensitive business that should be approached with care.

The loan despite debt – the starting point

When the following situation arises, a customer has to pay for an expensive repair, the refrigerator has given up its ghost, or there are other expenses that cannot be paid from the current budget, then many consumers think about a loan despite debt. If the consumer acts prudently, he will use a budget to determine whether he can still afford a loan installment. He should put his income against all liabilities to do so, if there is financial scope left, this could be the rate for a new loan.

However, it would be better if the loan seeker merges his liabilities into a loan despite debt. In the best case scenario, this will result in savings that consumers will notice. The debt will not decrease, but he only has one creditor and thus a better overview of his finances. If all financial liabilities are to be paid to a money house, debt restructuring could be carried out without additional costs. If another bank comes into consideration and loans have to be redeemed by other banks or mail order companies, a prepayment penalty can be incurred.

To do this, the customer must know that the bank can offset such compensation if there are no special repayments noted in the loan agreement. The bank calculates interest on borrowing, which is usually calculated over the entire term of the loan. If a loan is now repaid prematurely, you will incur a financial loss, which is to be compensated with a prepayment penalty. The customer can avoid this in the future by having such free special repayments entered in their loan agreement. This also makes sense for the employee who can count on bonuses and additional payments from the employer each year.

To a new loan despite debt or rescheduling, the overdraft facility is one of the factors that often require a loan. The overdraft facility is provided by the bank if the customer has regular income. The amount of the overdraft facility is based on this income and can be up to three net monthly salaries. The overdraft facility is easy to apply for, a call to the bank is often sufficient and just as easy to use and there is a risk of overdraft facility.

Many customers use it like a second income, especially when the salary no longer covers the overdraft facility. Since the overdraft facility is expensive, it should only be used for a short time anyway. For example, if an urgent invoice has to be paid towards the end of the month, which is covered again after receipt of the salary. If a customer uses the overdraft facility beyond the granted credit line, he can slowly but surely get into the overdraft trap if nothing is left standing. The bank often terminates the overdraft facility if it is overdrawn again and again, and the customer then needs a loan, which the bank may not grant.

The loan despite debt – the loan options

Before banks grant credit, be it debt restructuring or a new loan agreement, they will check the customer’s creditworthiness. This includes the examination of income and the Credit Bureau query. The income must be high enough that it can be attached. For example: A single person must earn about 1,160 dollars net. Credit rates should always be set to match the client’s income and liabilities. Credit Bureau also plays a crucial role in a loan despite debt. If the customer has negative entries, for example because a reminder has not been taken seriously or an invoice has not been paid, he can have difficulties with another loan.

The house banks often refuse to approve another loan despite debt. The customer can then try it with a direct bank that does not have such strict credit rating requirements and does not see a Credit Bureau entry as closely. If he finds a lender, the invoice should also appear at the beginning of whether another loan installment can be paid. The negative entry in the Credit Bureau had its reasons and shows that there have been payment problems in the past.

If there is no conventional bank, a loan remains despite foreign debts. Credit Bureau does not matter there, the credit is also not entered, which practically results in an anonymous loan. However, the customer must also meet strict requirements here. The income must be above the garnishment exemption limit and the customer must have a permanent position that has existed for at least one year. The loan amount is limited at these banks. Only three loan amounts are offered, once 3,500 dollars, 5,000 dollars or 7,500 dollars. Depending on the creditworthiness of the customer, the loan of 7,500 dollars can then be approved.

The customer has to decide to what extent these loan amounts are sufficient. These loans have a high interest rate, similar to the overdraft facility, in the double-digit range around 11-12% depending on the credit rating.

If the Credit Bureau-free loan is out of the question because, for example, a larger loan amount is required, a surety can be named. The guarantor secures the loan with his income. If the borrower can no longer pay, the guarantor must continue to do so. The guarantor should be informed that a guarantee is a risk and especially the joint and several guarantee. The customer simply does not have to pay anymore, the bank does not have to carry out a complex reminder procedure, but can take the guarantor into recourse immediately. So it can happen that a guarantor has to pay off someone else’s debts.

What is a credit agency?

Credit bureaus are private-sector companies that collect data about private individuals and evaluate them in order to be able to assess the creditworthiness of these people. Not only banks can turn to credit bureaus, but all companies that have a “legitimate interest” according to the EU General Data Protection Regulation (GDPR). For example, if you want to pay for a washing machine in installments, the dealer can contact a credit agency to obtain credit information about you. That means: to find out how reliably you have paid in the past and how you are likely to behave in the future.

The definition of the credit agency could therefore be: If banks are the heart of our economy, credit agencies are their immune system. Banks supply the entire cycle with money, credit agencies should quickly identify and contain risks for this cycle. For example: You need money to finance a house. So go to a credit institution and apply for a loan. Before the bank approves it, it wants to know: how big is the risk that it will not get the money back? The bank asks a credit agency such as Credit Bureau for a credit check.

Which credit agencies are there?

The most famous credit agency in Germany is Credit Bureau, but it is not the only one. There are also alternatives to Credit Bureau for credit information. Four players share the credit assessment market: In addition to the market leader Credit Bureau, the Creditreform Boniversum, CRIF Bürgel, and Infoscore Consumer Data.

The Credit Bureau

The Credit Bureau (Protection Association for General Loan Protection) stores data records on over 67 million citizens. To do this, Credit Bureau accesses public directories, such as commercial registers and databases on legal proceedings. She also works with 9,500 companies: trading companies, banks and telecommunications companies share information about their customers’ payment discipline. Credit Bureau is a holding company, 87% of its shareholders are banks, the rest are trading companies and others. You can get more information in our Credit Bureau article.

Creditreform Boniversum

Creditreform Boniversum, also simply called Boniversum, has records on around 55 million German citizens. Like the Credit Bureau, the company uses sources such as public registers such as entries in the commercial register or debtor register, balance sheets and business reports, written supplier inquiries, payment experiences of corporate customers and knowledge of debt collection procedures.

CRIF Bürgel

The company, merged in 2016 from the two credit agencies CRIF and Bürgel, obtains its information from the same public sources as the other competitors. She supplements this with data from her partner companies. CRIF Bürgels data pool records entries of approximately 56 million people.

Infoscore consumer data

The credit agency is part of the Arvato company of the Bertelsmann Group and has stored over 40 million data points from around 7.8 million German citizens.

Good to know: Credit agencies serve the needs of banks and retail companies with their scores. But there are also companies whose services are primarily aimed at consumers. One of them is bonify, for example, which works together with Creditreform: the Berlin start-up helps to collect the creditworthiness information and use it for its own benefit. Another provider is it’s my data from Munich. The company offers support in enforcing its own data protection rights and issues its own credit certificate.

What does a credit agency know about me?

The various credit reporting agencies basically follow the same procedure: they collect names, age, gender, and current and previous addresses. The credit agencies need this information to identify people precisely. However, the legislator sets limits on this curiosity: According to the GDPR, it should not be recorded whether you are single or married, what you earn, how much money you saved, or which securities accounts you have. However, the credit bureaus may save whether you have previously noticed poor payment behavior. To do this, they collect data from dunning and collection procedures or use publicly available information about bankruptcies, affidavits and arrest warrants.

However, these records are only half the service. A credit agency uses this information to calculate a so-called score, such as the Credit Bureau score: This value not only provides a quick reference value to assess a person’s previous payment discipline. The score assigns you to a comparison group with comparable characteristics using statistical methods. The experience of how reliably people from this comparison group have paid debts in the past will also be accepted for you.

What can lead to a bad credit score?

The credit agency therefore knows whether you have or had loans anywhere, whether there is a collection procedure against you, and whether you have been reliable and paid debts so far. But what does the credit agency do if there is no data about you? So if you have never taken out a loan and have no other information about your payment history? Nevertheless, the credit agency will calculate a score that looks at your personal data. Do you move frequently? So it can happen that you get a bad score even though you earn well and have no outstanding debt. However, according to law, the credit agency must use more than just a person’s address to create a score.

Credit bureaus do not have to disclose exactly how they calculate their respective score: According to the judgment of the Federal Court of Justice (BGH, judgment of January 28, 2014, Az. VI ZR 156/13), this is a business secret.

How do I request information from a credit agency?

The credit agencies also make mistakes in their calculations. A survey by Boniversum among around 1,000 consumers showed that information was incorrect in a total of 20% of the self-reports requested, in 11.8% of the data records they were even incorrect entries for debt collection processes or the like. It also happens that cell phone contracts that have already been terminated are continued, or multiple places of residence are accepted through typing errors, which is interpreted as a frequent change of residence and leads to poorer forecasts. Of course, there can also be confusion.

It is therefore very important that you regularly request information from the credit bureaus. This way you can check whether your score is justified there or whether you can have incorrect information deleted. According to Art. 15 GDPR you have the right to request free self-disclosure (data copy) from each of the credit agencies at least once a year. The credit agency must provide the information within one month of your application. In the following we explain how exactly this works.

With above-average Across Lender credit experience, loans from this private bank not only stand out as cheap, but also as individual and flexible offers.

In order to receive a loan from Across Lender, a positive credit rating is a prerequisite. The selection of offers is versatile, so that the potential borrower can not only choose between amounts in different amounts, but also for very individual loans according to his requirements.

The right loan for all needs

According to the Across Lender credit experience, finding a loan with low interest rates and fees and advantageous contractual terms is easy. In addition to the installment loan, car loan and residential loan, a permanently available framework loan is also available as a disposition limit.

Loans of up to $ 50,000 can be easily compared on the Across Lender website and accelerated in a manageable way. With a high income and sufficient collateral, individually higher loan amounts are possible. Due to the good Across Lender credit experience, you get security and opt for a loan where the borrowing rate is appropriately low and the repayment is possible with a short or long term.

If the repayment rates are to be kept low and manageable, a loan with a term of up to 84 months is available and also creates a lot of flexibility and numerous options for a better quality of life in the repayment framework. The installment loan is not earmarked and can be used for individual requests. If you want to buy a car or finance your property, special loans from Across Lender are advantageous and stand out due to their favorable terms and contractual advantages.

Seriousness is very important

All known Across Lender credit experiences show that direct and competent contact with the bank is possible without any problems and that an individual option can be found in any case. You can get an overview of relevant offers directly from the private bank, but you can also use the Across Lender credit experience of the employees and have the appropriate financing recommended.

The focus of this private bank is clearly on the customer, which can already be seen as a borrowing rate from the low interest rates of 4.65%. The fees for all loans are also kept within limits, which means that it is impossible to finance the decision to choose Across Lender.

The best thing is for the potential borrower to make an appointment by phone and get advice on his options and the financial products that are advantageous for him. The reputable private bank has suitable and customer-oriented, affordable financing for all requirements and wishes.

Anyone who has taken out a Credit Bureau-free loan some time ago and now wants an increase should know that this is generally possible. Credit Bureau-free credit is for customers who have problems with their Credit Bureau. A negative entry and borrowing from a regular bank will no longer be possible. What does the customer have to do if they want to top up a Credit Bureau-free loan?

The situation with the Credit Bureau-free loan to top up

But why are customers looking for Credit Bureau-free loans? In addition, the loan seeker should know that banks have three approval criteria. That is sufficient income, clean Credit Bureau and permanent employment. If the loan seeker has a negative entry in his Credit Bureau, most banks refuse a loan. The risk of default seems too high to them.

The way out of this situation offers a Credit Bureau-free loan that comes from abroad. In particular, it is listed under Swiss credit, as the loans all came from the Swiss Confederation until 2009.

A Credit Bureau-free loan always had a bitter aftertaste. Many people associate it with a credit rip-off. In some cases, they are even correct with it. Because a Credit Bureau-free loan from a private person should be checked very carefully by those who want to borrow. The reason for this is that all conditions were concluded privately and were not checked by a supervisory authority. To what extent a customer can top up a Credit Bureau-free loan is stated in the contract.

The other side of Credit Bureau-free loans are the loans offered by reputable credit brokers. The money comes from abroad and now mainly from Liechtenstein. Up until 2009, the loans came from a large Agree Bank credit intermediary from Switzerland. The company had to give up its business after years of litigation and is no longer allowed to grant loans to Germans.

Fidium was the market leader in these loans. The reason for the legal dispute was a lack of a banking license. If loans are still from this period, it can no longer be possible to top up Credit Bureau-free loans. This business has been taken over by Across Lender from Liechtenstein since 2010. The loan terms and conditions of the Credit Bureau-free loans have been taken over 100%.

The application for a Credit Bureau-free loan can be increased for loans from Liechtenstein. The credit route to top up is the same as for the first application. However, the conditions are calculated like a new loan. Of course, this type of credit also requires certain conditions that the customer must meet.

Increase the prospects of Credit Bureau-free credit

If you don’t get a loan from a regular bank because of your bad Credit Bureau, you have the opportunity to turn to the Credit Bureau-free loans. A negative entry does not show that the customer is not creditworthy. The entry could already be done long ago and also deleted. The customer did not think of doing this. That is why experts recommend that anyone considering a loan should obtain self-assessment from Credit Bureau once a year. From this, he can see whether the entry still exists.

Topping up a Credit Bureau-free loan can generally be possible. The conditions are the same as for the first loan. The Credit Bureau-free loan comes almost exclusively from Across Lender, which sets strict requirements for customers. The bank does not query Credit Bureau and bears the risk with the customer’s income. For this reason, the loan is more expensive than a traditional loan.

To top up a Credit Bureau-free loan, the customer must have a sufficiently high and regular income. The income must be above the exemption limit and must not be pledged. An example: A single person must earn a net 1160 dollars for a 3500 dollars loan. If the borrower is married and has children, the exemption limit is shifted upwards. The income should have a attachable share of at least 80-100 dollars.

The peculiarity of the bank is also evident in the loan amounts. The Liechtensteiner Bank only approves two loan amounts. Once 3500 dollars and a maximum of 5000 dollars. Both loans have a term of 40 months. The rate for the 3500 dollars amounts to 105.00 dollars, the 5000 dollars loan is repaid at a rate of 150.00 dollars. Since the loans are secured by income, the customer must sign a garnishment certificate before the loan is approved.

If there are defaults, the bank will seize the wages. For this reason, the loan should be paid on time. The customer should know that these loans are only processed through a credit broker. Anyone who has had a good experience with the first loan should make use of this credit intermediary again. Nevertheless, its terms and conditions should be checked again.

To top up a Credit Bureau-free loan is the same as applying for the first loan. The increase goes like this: For example, if you have already paid 1000 dollars on the loan, the loan amount is 3500 dollars, then the Credit Bureau-free loan could be 2500 dollars as an increase. The interest rate for the old loan and for the top-up is 11.26%. However, the current low interest rate phase could show a better interest rate.

For example, the Credit Bureau-free loan to top up could be cheaper than the first loan. A credit intermediary does not necessarily have to be commissioned to increase the Credit Bureau-free loan. The customer has the bank’s data and can apply for the top-up straightforwardly.

However, if the customer wants a higher loan amount, it may be useful to use the credit intermediary who has already processed the first loan.

In general, when commissioning a credit agent, it should be noted that he does not require any upfront costs or prepayment. The urging of signing insurance contracts is also not serious work. In general, there is no Credit Bureau-free loan without income, in the case of garnishment of wages or other serious features in Credit Bureau, which is why the Liechtenstein credit bank closes its doors.

Branch banks have an advantage, they have regulated opening hours, the advisors take care of the concerns of the customers and loans are provided immediately after approval. For this reason, many customers are still drawn to the house bank when asked about a loan. However, many of them do not know that online banks also offer many advantages. Sure, the money is not in the account on the same day, but if you are not in a hurry, you should take a closer look at the offers for an online loan with instant approval.

No annoying conversation with the customer advisor

Many are afraid to make an appointment with their bank client advisor. Some people find it embarrassing to explain why a loan is needed. There is no bank advisor who doesn’t ask for it. However, the situation is different on the Internet. Not only does the annoying conversation and the question of the purpose of use no longer apply, but there is also an online loan with immediate approval.

Once you have found the ideal bank on the numerous loan calculators, you can apply for your loan online. After entering all the relevant data, the bank concerned checks the applicant’s creditworthiness in the background. If everything is OK, the user will receive an immediate confirmation within a very short time. The annoying discussions with the branch bank consultant are no longer necessary.

No request for the purpose

Online banks generally do not ask about the purpose. The only exception is a real estate loan, which may only be granted specifically for this purpose. It goes without saying that proof of this must of course be provided. Basically, all formalities have to be completed for an online loan with immediate approval, as for a loan with the house bank.

In plain language, this means that a copy of the wages and salary slips and employment contracts must be submitted to the bank. Online banks also want to protect themselves. If everything is OK so far and the corresponding contracts have been signed, the money will be transferred and will be in the borrower’s account within a few days. Without annoying questions and making appointments.

Companies cannot always finance running costs and surprising claims entirely from their own resources. Then they use credit financing as a classic case of debt financing. Companies can take out long-term bank loans as well as short-term loans such as Lombard loans. Alternatively, companies can also do factoring or take out customer and supplier loans.

Definition: what is loan finance?

Loan financing primarily means taking out loans. It is therefore a measure of external financing and can also be assigned to the area of ​​external financing.

With the loan financing, the company receives outside capital. The investor, the financing bank, but not the shareholders of the company. However, the lender is entitled to interest and repayment of the borrowed funds. If the company goes bankrupt, the bank is even entitled to part of the bankruptcy estate. In contrast, the lender (= creditor) has neither a say nor is he liable for the actions of the borrower (company). Of course, the loan funds are only made available to the company for a limited period of time within the term. The capital is to be repaid in different forms in one amount or in installments.

What types of loan financing are there?

In the case of loan financing, the different types are differentiated in particular according to the terms. Short-term loan financing includes:

• Current account credit (also called overdraft or overdraft facility): The bank grants the company overdrafts of one or more bank accounts up to a predetermined limit. This is the so-called credit limit. Current account credits are flexible in terms of amount and term, but also have higher interest rates than regular loans and can cause considerable costs.
• Lombard loan : With this loan, movable property or assets that can be easily and quickly sold (securities, bills of exchange) are deposited as collateral (lien).
• Discount credit : The loan is based on a bill of exchange (promise to pay) which is loaned. That is why the loan is also called “bill of exchange”.
• Acceptance credit : In this case, the bank does not pay out credit money, but guarantees its own creditworthiness towards a third party by means of a bill of exchange. In this way, it is a loan.
• Guarantee credit : It is typical here that a bank makes a promise to pay for its own customer to a third party. The bank receives an interest (guarantee interest) or a fee (guarantee commission) for this.

The long-term variant of loan financing is typically the bank loan. These are loans that have a term of at least four to five years and can be concluded for up to a maximum of 30 years. As a rule, they are agreed with an initial rate fixation, but can also be subject to variable interest rates. With this long-term loan financing, the company primarily wants to finance investments in, for example, property, plant and equipment. Refinancing is also a common reason. Long-term loans can differ in particular according to the type of agreed repayment:

• Annuity loan : Annual installment payments in the same amount throughout until the end of the term.
• Repayment or repayment loans : With repayment rates remaining constant annually, however, the interest payments gradually decrease as the term increases.
• Final or fixed loan : Here, a one-time repayment (repayment) takes place at the end of the loan term. Until then, only interest is payable in installments.

Short-term vs. long-term loan financing

Short-term loan financing is of great importance to the company: If financial shortages arise only for a short time, they can be bridged in this way. This avoids temporary liquidity bottlenecks. The company remains able to act and can repay its short-term liabilities with the next incoming payments. Short-term financing therefore makes a decisive contribution to a company’s financial flexibility.

Long-term loan financing , on the other hand, is particularly suitable for very cost-intensive investments. This results in a very high capital requirement that can only be covered by external third parties. However, this also creates a certain dependency on the financing bank. On the other hand, small and medium-sized companies can finance larger investments as part of a loan. Otherwise, due to the strict credit rating requirements, they are usually denied alternative financing options for the promissory note loan or the issue of bonds.

Calculation and comparison of loan financing (practical example)

A company in the food industry needs a new packaging machine. It not only saves material and energy costs, but also has to replace the old machine due to increasing downtimes. Therefore short-term funds are necessary for the investment of 500,000 dollars. Nor can they be raised in this volume from reserves or other available funds. Therefore, debt capital in the form of loan financing is required in this amount.

Discussions have now been held with the company’s bank. After the negotiations are concluded, loan financing is agreed for the purchase of the packaging machine. The company uses this to calculate the following costs and key data:

Credit amount:	500,000 dollars
Credit fees:	1,500 dollars
Total interest payments:	50,000 dollars
Short-term commitment interest:	500 dollars
Total cost of credit:	50,000 dollars

However, if the required loan amounts are not so high, the self-employed, small business owners or freelancers can use conventional banking offers to finance loans.

What needs to be considered when financing loans?

If loan financing is to be carried out, the company must usually submit these documents to the bank for review before granting a loan:

• the last complete annual accounts included
• the profit and loss account (G + V)
• the business plans (earnings planning, business plan)

These documents are also desirable for self-employed persons and certain types of business:

• Business evaluation (BWA) from current and past business year
• Advance sales tax returns
• Credit overviews (other lenders)
• Proof of income (private)
• List of investments (securities holdings, interest and dividend income)

In addition, a lending bank will take a close look at certain key financial figures for the company. However, it is best to find out in advance of a loan financing what the bank attaches particular importance to and which key figures are of great importance.

Credit financing costs

At the same time, the cost of loan financing is an essential point for the company. Because banks calculate their loan interest as compensation and remuneration for the capital provided. They are the main component of the cost of a loan and are usually influenced by the following factors:

• the creditworthiness (creditworthiness) of the company, which results from
• the bank ‘s own credit or default risk from lending and
• this gives the bank’s equity with which it must hedge the loan
• the agreed time limit for the loan
• the internal loan processing effort
• the respective interest rate level on the money and capital markets when procuring the borrowed funds (refinancing)
• the credit bank’s profit targets

It is therefore in the interest of the company to take these influences on the amount of the credit costs into account when planning a loan financing.

What are the alternatives to loan financing?

As alternatives to loan financing, companies can use these classic ways of sometimes very short-term capital raising:

• Supplier loans : Short-term supplier loans through a more generous payment term.
• Customer loans: With agreed down payments or partial payments, money is left without interest.
• Mezzanine capital: For example in the form of subordinated loans and silent participations, without capital providers demanding a say or collateral.
• Factoring: Sale of the existing trade receivables to a factoring company (factor) at a discount. These claims no longer have to be collected in a protracted manner and the company receives money from the factor immediately.
• Private equity: An outside investor provides financial resources. These are added to equity. Because the investor now bears the entrepreneurial risk, for which he has a say.
• Leasing: As a rule, mobile commodities such as cars, cars, technical equipment or machines are financed and provided by third parties. Monthly leasing installments are payable for this.

Leasing vs. Loan financing

In contrast to leasing, the company usually becomes the owner of the purchased property in the case of loan financing. When leasing, the company pays the agreed installments only for one use of the movable property. But they don’t belong to him. At the end of the term, they must therefore be returned to the leasing company. In contrast, the company can benefit from tax that the leasing installments are completely deductible as operating expenses. With ongoing loan financing, only the interest portion of the monthly loan installment is tax-deductible.

 

If you are interested in an online loan with immediate payment, you are usually in a hurry. He is looking for a financing option in which the money is quickly available and can be used. The advantages of an online loan with immediate payment and how you can apply for it should be examined in more detail here.

The application and the payment

An online loan with immediate payment is ordered directly on the Internet. Before deciding on a suitable loan offer, you should compare a few offers to find the perfect loan. You should not only pay attention to a quick payment, but also the interest rate that goes with the offer. Interest rates determine whether a loan is cheap and how much it generates for the borrower. The lower the interest rate, the cheaper the loan.

Once you have found a suitable offer, the next step is to request it from the offering bank. For this, as a borrower, you have to provide information about income, expenses and personal living conditions. Income must be proven with the help of proof of salary. The expenses can be estimated. In addition, the provider will query Credit Bureau in order to obtain information about the borrower’s payment behavior.

Requirements for an online loan with immediate payment

If this was good and all other requirements for an online loan with immediate payment are met, the provider will most likely agree to the loan and the contract can be signed. Since the loan was ordered via the Internet, the contract must be printed out and signed by the borrower and returned to the provider. If printing is not possible, the contract can also be sent from the bank to the borrower by post. However, a little time must be planned for this, which speaks against an immediate payment.

The bank will instruct the money when the signed contract and all documents have been received and checked. It usually only takes a day for the money to reach your account. Sometimes it is also possible that the money is paid out in cash by check. However, this only happens with small sums.

Note: A serious loan is generally only possible if the credit rating is correct. If the payment takes too long when applying via the Internet, you can also ask about a loan from a local bank. There is the possibility that one can wait for the loan amount to be paid out immediately after the application. However, this requires that all documents are available and that the creditworthiness is good to very good.

 

Postident is a legal basis and is an essential part of an online loan. This is the opinion of many borrowers. Postident is a procedure that shows the recognition of a person, in simple terms, a person recognition based on the identity card. In the meantime, however, there are ways to bypass the Postident. Anyone who has already taken out a loan from a bank and would like to take it back there no longer has to do the legitimation. There are other ways to get online credit without Postident.

For one thing, some providers accept copies of an ID card or employment contract. Copies of proof of salary and bank statements are also often accepted as copies. The newest thing about the Postident’s path is the video ident.

Online credit without Postident- the location

Customers who apply for an online loan without Postident have read it many times or made it themselves. Postident must be carried out at Swiss Post. The loan seeker thus legitimizes himself on the basis of his name, place of residence and age. A Swiss Post employee checks the data from the Postident against the data on the ID card. The legislator prescribes this because of the Money Laundering Act. A clear legitimation is also required when opening an account in a branch. The times when customers were known to bank employees are often a thing of the past.

Basically, this is very easy for a loan seeker who lives in a city and has the post office around the corner. At most the opening hours of the post office could be a disability. In the meantime, however, the post offices have been open so long that even a working person can make his postident, but at the latest on Saturday.

If the customer lives in the country, the situation looks a little more difficult since the nearest post office is a little further away. The country post offices nowadays often only have short opening hours. A professional could then have difficulties. The customer should know that the Postident procedure can slow down the credit process. Because there is no loan approval without the procedure having been carried out.

The customer need not fear that this process is expensive, normally a Postident is free of charge for the borrower. The costs are credited to the lender. The customer does not need to plan for a long time, it is only a few minutes until the process is complete. The creditor should already be legitimized on the next working day.

The classic legitimation

If the customer applies for a loan in a bank branch, he does not need to make a Postident. The identity is verified at the bank counter by presenting your identity card. To do this, the customer must adhere to the opening hours of the branch banks. Strictly speaking, there is no post office where there is no bank branch. In addition, loans from branch banks are more expensive than those from online banks.

The other possibility provides for legitimation by the customer going to a branch bank that is connected to the online bank. The customer can have their legitimation confirmed there.

For foreign banks that approve an online loan without Postident, this happens more often when it comes to smaller loan amounts. A copy of your ID card or an electricity or water bill is often sufficient. However, this procedure is not necessarily faster, especially if there is no copier for an online loan without Postident. If you have your smartphone, you could use it, but not everyone has it.

The proof of identity for an online credit without Postident could also be photographed and emailed to the bank. However, not all foreign banks accept this procedure and the conditions there are often not the best. In addition, domestic credit is becoming increasingly popular. It is easier to negotiate and even if there is a legal dispute, you can speak in the same language.

The legitimation through the video ident

The latest version of legitimation is the video ident. An online loan without Postident can thus be applied for. However, this requires a computer with a webcam and, as with all other legitimations, a valid ID. The video ident is started by entering your name, age and place of residence in a form. With the video chat, an employee will then compare the data with the ID that the loan seeker must hold in the webcam.

This is followed by a photo that the employee takes of the customer and the ID card. Once this has been done, the customer receives an SMS TAN, which must be entered in the field provided. The identification via the PC is then completed. The customer should not forget the creditworthiness documents for an online loan without Postident, because these still have to be sent by post. These are proof of salary, bank statements and a copy of the employment contract.

If, for example, a co-applicant has been named, the documents must also be sent by post. However, there is also a time limit for online credit without Postident, because online authentication can only be carried out from 8 a.m. to 10 p.m. The only advantage that can be seen from this is that the customer does not have to leave his home.

Conclusion

Not all banks offer online credit without Postident. In practice, video legitimation is offered by so-called service providers. The largest provider at the moment is WebID Solutions from Berlin. This company has an approval from the Federal Financial Supervisory Authority. The process can also be found at Swiss Post under Postident Video.

For the customer, this means that he does not necessarily speak to a bank employee, but to an employee of the other company. It is advised not to ask any special questions to this employee, unless there are questions regarding legitimation.

The only relief that this method currently offers is that the customer no longer has to leave the house. If he still has to send the credit documents to the bank, he could also use the Postident procedure.

 

Country rating overview: How creditworthy are the countries in Europe?

When it comes to the country rating, Europe is divided into three parts: countries such as Germany, Norway and Switzerland are at the top with a triple-A rating. A solid midfield follows from very well to satisfactorily rated countries such as Belgium, Austria, Spain or Finland. The risky part with countries like Greece or Turkey is something for investors who are willing to take a risk when investing.

Countries in Europe with the best credit rating

The following table shows the European countries with the best rating of the rating agencies in alphabetical order. Here you can safely invest money in a foreign currency account, for example.

These countries receive top marks in the country rating

	S&P	Moody’s	Fitch
Germany	AAA	Aaa	AAA
Denmark	AAA	Aaa	AAA
Liechtenstein	AAA	No rating	No rating
Luxembourg	AAA	Aaa	AAA
Netherlands	AAA	Aaa	AAA
Norway	AAA	Aaa	AAA
Sweden	AAA	Aaa	AAA
Switzerland	AAA	Aaa	AAA

Countries with high credit ratings

Some European countries do not have top marks, but are rated “very good”, “good” or “satisfactory” by the rating agencies. This corresponds to rating grades between AA + and Baa1. According to school grades, this would still be a 1, a 2 or a 3. For you as a saver, this means that you can invest your money in fixed-term deposit accounts in these countries without great risk.

These countries are rated with very good, good and satisfactory credit ratings

	S&P	Moody’s	Fitch
Belgium	AA	Aa3	AA-
Estonia	AA-	A1	AA-
Finland	AA +	Aa1	AA +
France	AA	Aa2	AA
Great Britain	AA	Aa2	AAA
Malta	A-	A3	A +
Austria	AA +	Aa1	AA +
Poland	A-	A2	A +
Slovakia	A +	A2	A +
Slovenia	AA-	Baa1	A-
Spain	A-	Baa1	A-
Czech Republic	AA-	A1	AA-
Hungary	BBB	Baa3	BBB

Countries with increased risks

According to the ratings of the rating agencies, some European countries are at increased risk for investors. Anyone investing here must expect that if the economic situation in these countries deteriorates further, payment defaults may result. Investments are risky, they are speculative or even highly speculative.

These countries have poor credit ratings

	S&P	Moody’s	Fitch
Albania	B +	B1	no rating
Bosnia	B	B3	B
Greece	B +	B1	BB-
Macedonia	BB-	no rating	BB +
Moldova	no rating	B3	no rating
Montenegro	B +	B1	no rating
Serbia	BB	Ba3	BB
Turkey	B +	B1	BB
Ukraine	B-	Caa1	B-
Belarus	B	B3	B

What do the country credit ratings mean?

The triple A – three times A – is the best rating of the rating agencies in Moody’s Rating, Standard & Poor’s Rating and Fitch Ratings and is therefore the same for all three large agencies. Below this AAA country rating there are different grades, as the following graphic shows. The lowest rating is D, meaning a country’s insolvency.

How are the grades for the country rating determined?

The assessment is based on two factors.

• Factor one are complicated mathematical models that evaluate the central economic data such as gross domestic product and the investment volume within a country.
• Factor two are soft criteria such as the political situation and social stability of a country.

However, the rating agencies do not fully disclose how they arrive at their ratings.

What does country rating mean?

Global rating agencies assess the creditworthiness of countries. This is done in the form of a rating, the agencies call this rating credit ratings. This gives a very simplified indication of how creditworthy a country is. You know a similar procedure from lending in the private sector with Credit Bureau, which determines the creditworthiness of people with the Credit Bureau score.

The country rating also gives you information about whether an investment in a country is safe or risky. The rating of the countries creates tables that offer a good overview: from very safe countries to a high country risk.

Already knew? The world’s leading rating agencies are Standard & Poor’s (S&P), Moody’s and Fitch Ratings. All attempts at competition, such as the Chinese Dagong rating, have so far been without any notable success against these market leaders.

Where can I safely invest my money after the country rating in Europe?

If you want to be on the safe side, use the European country rating and pay attention to investing in countries with at least twice the letter A. Here, so many positive factors have been included in the assessment that promise stability. A prominent example of recent times is Great Britain, where the complex and unpredictable consequences of Brexit have so far not changed the safety of the plant. Another example is Austria, where the sudden break in the coalition of ÖVP and FPÖ had no effect. The Triple-A promises the greatest possible security.

Tip: You can find a good overview of the current range of investments in overnight and fixed deposits in many European countries in our overnight deposit comparison and in our fixed deposit comparison.

The rating of the country’s credit rating can change

An example from the 2007 financial crisis shows that the question of how creditworthy which countries are is not necessarily answered reliably by the top grade. A few months before the onset of the financial crisis, Iceland was rated AAA and soon thereafter faced state bankruptcy.

Tip: You can find a regularly updated overview of the ratings of all countries worldwide, which are rated by the three major rating agencies, at the Across Lender.

What happens to my investment if my country’s credit rating is poor?

In such countries, the risk of losing your investment increases. In the states of the European Union, your investment is protected up to $ 100,000 by the statutory deposit insurance. This deposit insurance was introduced as a result of the financial crisis for consumer protection. The idea behind it: if a bank goes bankrupt, the nation state takes over the security. However, if the nation state also has to declare state bankruptcy, this can be fatal to creditors. There is no bankruptcy money for states. That means that in the European Union the other member states would have to step in. The practical test that this runs smoothly is pending.

What is the risk of investing outside of Europe?

Outside of Europe, the risk of total loss is even greater. The Argentine state bankruptcy in 2001 is an example of this. Above all, foreign creditors lost their assets without replacement. There is also an additional risk if the credit rating is poor: if the rating agencies devalue the country again, the conditions for the country on the capital market will deteriorate. This can trigger a negative spiral that can lead to national bankruptcy.