Pay different interest rates at different banks
Installment loans are already offered at some direct banks for interest rates of 3.9% pa Who does not like to take action when a new laptop or a new couch is to be financed? However, loan seekers often only recognize from the fine print that these interest rates are ab-interest rates that depend on the applicant’s creditworthiness. This credit-dependent interest calculation means that approx. 95% of all credit customers have to pay a significantly higher interest rate than what is offered in the advertising. The reason for this lies in the new capital guidelines of the banks, Basel II for short. These rules require banks to put back much of their equity if borrowers are of medium or low credit quality, as these loans could default. The missed income that the banks lose as a result will be charged to customers in the form of higher interest rates.
However, a general answer to how high the personal interest rate is cannot be given. The banks determine this individually based on customer data. For this purpose, each institute has created its own scoring, in which the data have different weightings. This means that the same customer has to pay different interest rates at different banks, which can vary up to 8% pa. On the other hand, it is uniform that the banks query the income data for their scoring and also check this on the basis of the salary statements. Furthermore, the details of the entry date at the employer as well as the residential status and marital status are required. The surplus of a possibly performed budget calculation is also included in the determination of the scoring. Another important point is the data stored at Credit bureau, the protection association for general credit protection.
Higher interest premiums the borrower has to accept
This contains information about the use of banking products (accounts, credits, credit cards) and the payment behavior of the debtor. Any payment defaults that the borrower has already caused are also saved and in most cases result in the loan being rejected. If all data has been entered into the computer program, this determines a score between one and six. In this context, a value of one means excellent creditworthiness, which means that the customer also receives the low interest suggested in advertising. However, from a scoring of 1.4, small interest premiums are calculated. According to statistics, only approx. 5% of all bank customers are rated very good, approx. 25% receive a good credit rating, 50% even have a medium credit rating. The interest premiums are corresponding.
The basic principle here is: the higher the score, the higher interest premiums the borrower has to accept. The only alternative is to send the request to another bank. But be careful: Many credit inquiries can have a negative impact on Credit bureau and thus lead to poorer scoring of the bank. In order to be able to quickly compare bank loan offers without first making an application, there are now comparison platforms on the Internet where the customer can determine the offers based on their credit rating. To do this, the borrower must assess himself and indicate whether his credit rating is very good, good or only medium. Although these comparisons do not provide any detailed information, they are much more meaningful than comparisons without a credit assessment.