Most consumers quickly plunge into the adventure of credit without first thinking about the amount they would get from the bank. A new car, a new kitchen, your next vacation or a new TV. The long-awaited home to finally get out of his apartment in your own four walls. The bank has a special due diligence on lending. The reason for this is that there is an immediate equivalent that the bank uses as collateral.
How much credit can I spend?
Before accepting a loan of any coupon, there is always the question of whether you can pay it off. How much credit can I spend? Studies and statistics show that, since 2014, more and more people have taken credit for a variety of purposes and many of these people are unable to estimate how much credit should actually be for them to pay.
Although it is not possible to clarify this common question for everyone, we have created a guide with the most important tips and tricks, which is to be understood as simple as possible with our many years of professional experience. This should allow anyone to make a meaningful assessment of how high a loan can be so it fits well into its overall private financial situation.
It is important to take a look at the steps listed here before starting to compare loans.
In a first step to the question “How much credit can I afford,” what you can not avoid is a detailed list of current income and expenses.
In the case of longer payment terms, of course, it must also be taken into account whether the aggregated quantities can change over time, eg as a result of a change of job or an increase in rent. You just have to be honest with yourself and see if you can afford a loan. The list is also important because many banks initially set lump sums and accept around $ 700 for the landlord and $ 250 for each additional remaining at the end of the month remaining person.
You should be able to judge whether these guidelines really apply to your own situation. Before jumping off into the concrete loan application, you should carry out a loan comparison. For example, if a loan allows for a special repayment, you can be flexible and pay off the installment earlier than originally scheduled.
The same applies to the possibility of suspension of partial payments; Some providers allow this in case of a financing shortage. The purpose of the loan can also be important. For example, you will not receive special discounts on a loan for the purchase of furniture, but if it is a car loan or even a home loan, you can wait for much more favorable conditions.
The reason for this is that there is a direct equivalence value that the bank uses as collateral. Of course you have to pay attention to interest rates and rates in general in order to find the answer to the questions: “How much credit can I even allow myself? By the way, you have to be careful here – you can not always rely 100% on the information from the major credit rating comparisons; it is an estimate based on the information you provide in your application, as we have for example with our experience with CheKos.
The comparison makes sense in any case, but a complete and reliable estimate of the cost of credit is ultimately only possible if you have the bank offer in your own ranks. Therefore, serious credit rating comparisons are never binding and do not require any upfront costs.
With regard to the question “How much credit can I afford” one can say on the one hand that it can only be answered individually for each one – on the other hand one can also get a very accurate assessment with a little effort. If you look at your finances calmly and leave a little room for possible changes, you can take out a loan without having to worry about any difficulties.