Why the budget is important when taking out a loan.

Why a budget ? Prudent management and the avoidance of things that are not available in the household budget are the basis for a healthy financial situation. This responsible behavior is worth striving for and can be learned. The most important tools for the correct handling of income and expenditure are a budget and a budget book.

Only those who know exactly how much money they can expect each month and what costs they will have to cover can really keep their financial situation under control. This also applies when it comes to making a necessary purchase or investment using a loan. In such cases, the main thing is to have a firm understanding of how much credit you can afford. The creation of a budget and the keeping of a budget book are also the foundation for a loan-financed project.

The basic elements of the budget

The basic elements of the budget

On the revenue side, a budget contains all incoming payments that can be expected in the month. This includes salaries, wages, maintenance payments, child benefits, pensions and other items. On the other hand, all expenses are recorded as they occur during the month. Rent, groceries, cars and reserves make up the bulk of this expenditure. Many small amounts for the various necessary purchases and purchases must also be considered when planning.

Experience has shown that many small amounts quickly add up to an unexpected amount. The budget therefore lists all items, even very low items, in terms of both income and expenditure. Finally, all sums are added up. The difference between the income and the expenditure shows whether the money is sufficient for the monthly needs at all, or whether in the best case scenario there is even something left at the end of the month.

The budget helps to take out a loan

The budget helps to take out a loan

But even if, despite all the good business practices, the situation arises that a purchase must be made on the basis of an installment loan, the household book is a real help. Because a precise analysis of your own financial situation is the be-all and end-all of every credit check and thus essential for a bank’s credit decision. The conscientious and therefore honest keeping of a household book provides the necessary basis in the event that a loan is required.

This monthly overview provides a realistic assessment of the financial scope for repaying a possible loan. Basically, the following applies: The loan terms (amount of the loan, term, interest, monthly installment) depend on your own monthly financial capacity.

Instant credit – where can it be found?

 

It is often only brief moments when it is decided what future life will look like. A friend calls and asks if you want to invest in a business idea, but the time window is limited. Or after an accident you have problems with your teeth, but the insurance does not cover the treatment. A loan is to be saved, if possible in the form of an instant loan. Many sufferers have a negative Credit Bureau, but there are also ways to get an instant Credit Bureau-free loan.

Instant credit: What does that actually mean?

Instant credit: What does that actually mean?

If you want to get an instant loan free of Credit Bureau, this means two things: Firstly, your own Credit Bureau entry should not be used as a decisive criterion for the question of whether you get the loan or not, and secondly, the instant loan should not be reported to Credit Bureau. Credit Bureau stands for protection association for general credit protection. This privately held data collection point creates a risk assessment for banks and other financial institutions when granting a loan, the so-called Credit Bureau entry. To do this, it uses the economic information that it knows about the applicant. This includes insurance, other loans or securities ownership. Whose Credit Bureau entry is negative, he has little chance of getting a loan if he doesn’t find other ways.

Immediate credit free of credit: the solution via salary, an internet bank or a guarantor

Immediate credit free of credit: the solution via salary, an internet bank or a guarantor

You can get an instant loan free of Credit Bureau if you present a guarantor to the bank who has sufficient Credit Bureau entry and agrees to stand up for the repayment of the loan if necessary. The financial institution consequently has a person to whom it can hold itself harmless and therefore, since it now has security, tends to grant the instant loan also without Credit Bureau. It is ideal if the bank knows the guarantor personally.

The guarantor may not even be needed if you have a very high salary and the weak Credit Bureau entry is only due to past sins. If the bank can recognize this, it usually overlooks the weak entry and nevertheless grants the loan. Anyone who does not have a high salary and knows no guarantor can contact a foreign internet bank. They often don’t check the Credit Bureau entry. For this, however, one should carry out an extensive comparison of the offers by means of Internet research and also include experience reports from previous customers in order to be able to assess the corresponding offer.