Three tips to improve your credit rating

All borrowers want the lowest interest rate and flexible loan terms. However, many forget that creditworthiness is the key factor. Three clues show how this can be improved. The creditworthiness is usually checked using an elaborate scoring procedure. The creditworthiness or creditworthiness plays an important role with every borrowing. It decides whether you will receive a loan approval and under what conditions. Your creditworthiness reflects your payment history and shows how you can deal with debt.

Credit check

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When applying for a loan, your credit record score and your income for the past three months are always asked to determine your creditworthiness. Your work status will also be checked. If these three points do not meet the bank’s credit rating criteria, additional loan collateral is often required. Below you will find information so that you can score in these three areas and receive the best credit conditions.

How you can improve your credit record score

credit record (protection for general loan protection) is the largest credit agency in Germany, which issues a so-called credit record score for every borrower. This rating includes data about your payment behavior for purchases on target as well as for loans. If you have not paid your debts on time in the past, you will receive a negative entry at credit record. This worsens your credit rating. You can conduct a free credit record self-assessment once a year and view your credit record score. You can use this information to act and improve your creditworthiness.

The exact evaluation criteria for the credit record score are not published. However, the following tips can help you improve your creditworthiness from credit record’s perspective:

  • If some data is entered incorrectly, you can request a data correction directly from credit record.
  • Cancel checking accounts and credit cards that you are not actively using. Too many open, unused accounts can make you feel like you’re transferring money back and forth for a dubious reason.
  • A single loan is rated better at credit record than several open loans. If you repay multiple loans, consolidate them and reschedule them with a cheaper loan. Online portals such as Financer.com/de can help with this.
  • Avoid defaults. If you have already received two reminders for your open invoice, this will be entered negatively by credit record.
  • If you are in a financial constraint, you should always speak to your lender first to adjust your rates or term.

Income is considered the primary loan security

A second important point is your income. It is often considered the primary loan security when lending. The loan agreement often stipulates that the lender can access the borrower’s salary in the event of default. Always make sure that your income is sufficient to pay off your debts. If not, ask for a raise or look for other ways to make money on the side.

Stable employment as an important anchor

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Your employment relationship is also an important factor in checking your creditworthiness. To successfully obtain a loan, you have to be employed by your current employer for at least six months. If you are on a trial period or in a temporary employment contract, this can damage your creditworthiness.

Conclusion: pay attention to your creditworthiness

Now you know what to do to improve your credit rating. If you observe all three points, there is usually nothing standing in the way of a cheap loan.

Credit without proof of salary and Credit bureau.

With the house bank one does not need to inquire about a loan without proof of salary and Credit bureau and is always rejected due to lack of creditworthiness and non-fulfillment of the requirements. The situation is different with the independent financial intermediary or the private investor.

What counts here is not the creditworthiness and the salary, but the collateral actually offered for the lender. Searching for an adequate offer on the free financial market brings advantages that do not only relate to hedging in different ways. The fast approval and prompt payment speak for themselves, as does the availability of very different loan amounts for the borrower.

Use advantages with a comparison

Use advantages with a comparison

Due to the numerous offers for a loan without proof of salary and Credit bureau, it is advisable to compare relevant models directly and to focus equally on low interest rates, but also on flexible contractual terms that meet your own needs. If urgent bills or claims have to be paid, new purchases, repairs or a renovation have to be made, the applicant has enormous advantages with a loan without proof of salary and Credit bureau and can look forward to a quick approval and payment.

The application is made informally online and approved by the lender within 24 hours. Independent financial service providers, most of whom work with foreign banks and find the right loan for every need, prove to be just as suitable contacts as private lenders. The comparison makes it possible to deselect offers that are too expensive and to focus specifically on a loan without proof of salary and Credit bureau, which is suitable for the applicant based on the interest rate and the general conditions and is characterized as an optimal decision.

Avoid long waiting times

Avoid long waiting times

Of course, lenders also want to receive collateral on the free financial market and thus prepare themselves in the event that the borrower does not repay repayment rates on time or not at all. Acceptable security can be provided with a guarantee or the pledging of property. The online application asks for the protection.

If the entry on security sounds plausible to the lender and can be confirmed by the borrower in the later application process by signature, a payment can usually be made after the 7-day waiting period. Private donors in particular are convincing with very fast payments and particularly low interest rates.

If you do not have property in your own possession, you should seek a guarantee from a relative or friend and thus demonstrate security for the lender. The guarantor is only held liable if the actual borrower does not meet his obligations.

Verification of the loan applicant customer

Nowadays, every customer who takes out a loan depends on time. People who reach for quick non-bank loans are usually in a difficult financial situation and therefore need to fund their account as soon as possible. The process of obtaining a loan from a non-bank institution is quick and usually takes no more than several minutes. The verification method offered by the institution plays an important role in the speed of granting cash.

So if you have applied for a loan, you must know that your identity will be checked by the lender. Most companies check their clients’ identities to lend cash to a responsible person who can afford debt and who is not a cheater. We currently distinguish several verifications of our data:

  • Bank transfer;
  • By phone;
  • By courier;
  • By checking in the debtors’ bases;
  • By installing applications.

What does customer verification look like?

What does customer verification look like?

Choosing the right loan is not an easy task. However, when you decide to borrow from a bank or loan company, you must wait yours before the money goes to your account.
Non-bank companies that offer quick cash loans usually require their customers to register on the website by completing an electronic registration form and then verify using the identity verification methods described below.

The most popular way to verify a customer is through a verification transfer. It involves transferring 1 penny or 1 dollar to the lender’s account. The transfer should be made from our own account, because in this way we certify that the account number provided in the documents belongs to us.
Another way to verify your identity is to call a loan consultant. By calling the applicant for a loan, the lender asks you to confirm the details provided in the form. It may also ask for other information about the applicant.

To meet the client’s expectations, loan companies are using more and more methods to verify their identity. In addition to the traditional verification transfer or telephone conversation, we also distinguish the verification of:

Verification by courier takes place when an employee of the transport company provides us with the documents to sign. He asks us to show his identity card and checks whether the form we have filled in contains true data. If everything is correct, he takes the loan agreement we have signed and delivers to the non-bank institution. This automatically transfers the necessary funds to our account.

Loan companies can also verify us by checking the customer in the debtors’ databases. By checking our position in the databases, the institution will obtain information about whether we had debt and how it was or is being repaid. That’s enough to assess the possible loan risk.

In the case of modern methods of customer verification, it is only required to log in to the application using the login details for the bank account. Both Kontomatik and Instantor automatically send information about our payments and the state of the bank account to the lender.

Each of these methods described above is safe and gives the lender a complete picture of our financial past.

Does every company verify?

Does every company verify?

The decision to take a loan is a very serious decision in everyone’s life. The customer must decide which particular loan he wants to use at the moment. However, keep in mind that money won’t get into your account right away. You must first wait some time before a decision is made. This is when the customer is verified.

Verifying the identity of a potential customer is often an inseparable element in the online lending process. Loan companies approach this very reliably, in the end you can take care of your interests in this way. Each client is carefully checked so that the financial analyst can decide whether to grant him a loan or not, however, it will not be a good move. Customers are verified in various ways, eg by bank transfer, telephone conversation and via courier.