Credit and consumer protection

Credit and consumer protection

Whether you're interested in an auto loan or any other loan, consumer protection is an issue you shouldn't completely ignore either way. The market for credits holds a wealth of offers for potential borrowers. Many of these credit offers are reputable, although this does not necessarily mean that they are beneficial to the borrower. You will have to compare credit and credit to find the one that is really for a good deal, and in some cases you should take extra care when getting an offer for a credit.

Credit without credit rating and credit with processing fee to be paid in advance
Schufa entries have already prevented many a credit before the conclusion of a credit agreement. Therefore, suppliers have jumped into a market niche here. Offer the credit without credit. Providers of such loans do not check with Schufa whether the potential borrower has an entry there or not. It may well be that providers make themselves pay dearly for such credit-free loans. We would like to claim at this point by no means that a schufafreier credit is fundamentally unseriös or completely overpriced. We would just like to suggest that you take a particularly good look at the conditions with this type of credit. You should be especially careful, however, if potential lenders want to have a processing fee in advance, i.E. Even before they sign a loan agreement with you. Such a fee would be charged to you even if the lender subsequently did not approve you for credit at all: So you would have no loan and a processing fee to pay for it. That would be… Rather disadvantageous.

Transparent costs are important with the Credit!
You should always distrust an offer for a car loan or other credit even if the offer does not seem transparent to you. Transparent in this case means that the costs generated by a loan must be clear from the outset. If, for example, information on the annual percentage rate of charge is missing from the loan, this is not the case. You are confronted with non-transparent costs for your credit, which should not be the case. To calculate the costs and benefits of a car loan, all the facts should be on the table. The indication of the annual percentage rate of charge is very important for an offered loan and is even required by law. If it is missing, possibly only an indication of the nominal interest rate is given, which does not include the processing fees, you should refrain from the credit. Such loans are not recommended.

Credit and possible compulsory insurance
Sometimes banks link loans offered, such as a car loan, with a requirement for the borrower to take out insurance that provides greater collateral for the bank. Such insurance on a credit can be, for example, a so-called residual debt insurance, which takes effect, for example, in the event of the death of the policyholder or sometimes in other cases and takes over installment payments. You find such an assurance useful? Then close one. If you don't think it makes sense, don't let a credit offer force you into the deal.

Watch out BEFORE signing
All these are tips for consumer protection around the topic of credit and all that is related to credit and lending. In the best case, heed tips before signing a contract for a loan and protect yourself this way. After signing, it often becomes very difficult or impossible to resist unwanted conditions on a credit. In individual cases, you might still have a chance if you turn to one of the arbitration boards of the banking associations. You can also find them on the internet.

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