The Internet is shaping people’s lives more and more. The majority of German households already have a computer, including access to the Internet. This trend is reinforced by smartphones and the mobile Internet. In addition to entertainment, the Internet is used for shopping and as a source of information.
Can I take out an instant loan online?
The Internet is second to none when it comes to comparing the terms and conditions of different financial institutions. Not only can you compare more providers on the Internet at a glance than you would manage in a day when visiting branch banks, there are also more and more credit institutions that offer their services exclusively on the Internet. You often see advertising that promises that you can take out an instant loan online. However, this statement is only partially true.
Sure, taking out an instant loan online is quick, but every loan carries a certain amount of risk. The lender wants to make sure that the borrower can properly pay off the installments and that there is no loan default. That is why the instant promise on the Internet is only of a preliminary nature. The credit institution that grants the loan will in any case insist on checking the creditworthiness of the applicant. The credit check has nothing to do with querying information from Credit Bureau, for example, a negative Credit Bureau entry does not automatically mean bad credit. Creditworthiness is the solvency of the borrower.
It is mainly determined by the borrower’s income (wages, salaries, pensions, rental income, returns, etc.). In addition to income, spending is an essential factor. So it is quite possible that despite a good income you cannot take out an instant loan online because the financial obligations are too great and too little money would be left to secure the repayment of the loan amount requested.
What do you have to consider when taking out an instant loan online?
In order to make the commitment for the instant loan binding, the bank requests further documents. This includes not only the current wage or salary statement or the pension notification, but in many cases also the latest account statements, from which the rent payment, electricity and telephone costs can be seen. A loan is often refused because the income is too low. In this case, you can either choose a smaller loan amount or offer the bank a security.
Residential real estate is particularly popular as security, but so are insurance policies, securities, antiques and precious metals. If you have no collateral, it is possible to provide a surety. A guarantor is a capable citizen who himself has a minimum income of around USD 900 per month and is willing to step in for the debtor in the event of a loan default and to repay the outstanding loan amount.
From what has been said it follows that in order to be able to take out an instant loan online, you have to have a regular income. If you live on social benefits, a loan application is in most cases useless or at least very difficult. The income should be at least 900 USD per month. In addition, you should have been with your current employer for at least a year, the employment contract should not be limited, and the trial period should be completed.