Reliable credit intermediaries help loan seekers find a cheap loan. Their services are useful not only for low credit ratings but also for real estate financing. Before the contract is awarded, credit seekers check the seriousness and creditworthiness of service providers on the basis of a few criteria that are easy to assess.
How can reliable and reputable credit intermediaries be identified?
The most recognizable feature of serious and reliable credit intermediaries is that they do not charge upfront costs. They are entitled to a reasonable commission on success, which they usually charge the borrower. Only with the real estate financing the assumption of the switching costs by the bank is common. As soon as an intermediary already demands money to process the loan application, potential creditors turn away from him. It not only violates the statutory remuneration system, but also gives the impression of being more interested in collecting the pre-charge than in the credit intermediation. Reliable credit intermediaries, on the other hand, have a vested interest in doing successful business because they can not earn income without actual lending.
Reliable credit intermediaries are recognizable as such in their advertising. They do not give the impression of acting directly as a bank. In addition, they clearly indicate the costs associated with their successful service as well as the correct APR for the loan at the first contact. They do not claim that they are successful in one hundred percent of all cases. Correct, however, is the indication that through a broker, a loan is often possible, even if the financial institutions directly reject applications submitted by the loan seeker.
Another hallmark for reliable credit intermediaries is renouncing home visits. These are proposed by conditionally reputable service providers often at desired private creditfreien loans or imposed on the loan seeker and serve mainly to sell other financial products. Reliable and reputable mediators refrain from proposing a conversation in the applicant’s home. A home visit due to the express wish of an elderly or handicapped credit interested party does not stand in the way of a reliable and reliable credit brokerage.
This also applies to the brokerage of a real estate loan for purposes other than the actual real estate financing. If the property is intended as collateral for another purpose of lending, the home visit serves to verify its condition and saves the creditor the cost of an external valuation. The calculation of reasonable travel costs is allowed for authorized or explicitly requested by the customer home visits, but the employee’s labor costs are part of the business risk of the service provider.
Reputable and reliable credit intermediaries do not offer their clients any additional financial products that are inappropriate for them. This does not preclude the proposal for the conclusion of a rate protection insurance, which makes sense in many cases. They correctly reflect the insurance benefits included in the contract when communicating with their customers.
When is it advisable to hire a reliable credit intermediary?
In principle, anyone interested in a cheap loan can hire an intermediary. The service provider compares the loan offers from different banks and proposes a cheap installment loan matching the wishes of the client. Since consumers can easily carry out a credit comparison online themselves, aspiring borrowers with good creditworthiness rarely hire a credit intermediary.
With a weak private credit or with a small or strongly fluctuating income reliable credit intermediaries render valuable services. They often reach lending in cases where the financial institutions directly reject loans submitted by the client. The success of the service provider is based on its market knowledge and good contacts as well as on the demand sum that it bundles.
Interested in real estate loans, even with a good credit rating like to hire reliable and reputable credit intermediaries with the search for the cheapest loan. The main reason is that real estate loans are much more complex and therefore more difficult to compare than consumer loans. In addition, the bundled high demand for mortgage lending means that some banks and insurance companies grant more favorable conditions when applying via a service provider than with the direct borrowing by the homebuyer or home builder.
Reliable credit intermediaries respect the wishes of their clients regarding the structure of the loan agreement. A flexible repayment scheme is recommended. Although consumer loans, unlike real estate loans, can always be repaid prematurely at any time, banks can then charge prepayment interest. These prevent potential creditors by specifically instructing the service provider to broker a loan with the right to additional repayments without deduction of a prepayment penalty. Especially with weak creditworthiness even more important is the possibility of an occasional rate suspension, as this allows the proper repayment even with unexpected additional expenses.