What is a loan request?
A new kitchen, rescheduling existing loans or financing a car: there are many reasons to take out a loan. The conditions for this are usually obtained with a credit request. But did you know that a special loan request can affect your creditworthiness and thus the chances of success in getting this loan? Because every bank carries out a preliminary check when it comes to a loan request and checks whether you meet the requirements at all. The more credit inquiries you make, the worse this is for your credit rating. In order to receive various loan offers, it is therefore usually better to make a condition request instead.
The difference between a credit request and a condition request
If you are looking for credit offers, you usually go directly to a bank or contact an intermediary. In order to check your financial requirements, he must carry out a preliminary check for the credit request. To do this, he contacts a credit agency, in most cases credit check is consulted. The information can be obtained in two ways: a loan request or a loan condition request. But what’s the difference? In order to make the differences clear, we have compared the characteristics of both types of request:
How creditworthiness affects loan offersSo if you want to compare different loan offers, it is important to ensure that the bank only ever makes a condition request. Because this serves purely as information and not as a specific request that affects your creditworthiness. In a personal discussion, please point out that you only want non-binding conditions for an installment loan. This is the only way to ensure that the credit request does not affect your credit check score and that you therefore receive worse credit terms.
A good credit rating is a prerequisite for granting the loan. This is assessed on the one hand according to internal bank criteria and on the other hand queried by credit check. Your credit-relevant data is stored there and is made available to banks and other commercial companies as required. Basically, the higher your credit rating, the lower the risk that you will not repay your loan. This also has an impact on the interest rate offered when a loan is requested: the better the credit rating, the lower the interest rate is.
credit check entry affects lending
If you would like to receive various loan offers, banks first ask your credit rating from a credit agency. This stores all business-related data about you. The best known credit agency is certainly the credit check, where data on current accounts, credit cards, cell phone contracts and loans are collected and made available to the banks on request. It also stores whether you have paid your bills on time in the past and whether all financing has been repaid. If this is the case, your creditworthiness increases and with it the probability of getting a cheap installment loan.
How the bank assesses your creditworthiness
Banks also use an internal system to assess your credit rating. The secret of every bank is what criteria are used here. Banks pay particular attention to these points:
- Income ratios: What are the monthly inputs and expenses?
- Existing loans: are they reliably serviced?
- Employment: How long have you been with your employer? Do you have a permanent employment contract?
- The place of residence: Do you live in an area with many debtors?
- Your previous payment behavior: What does credit check say about your loan request? What is the value of your credit check score?
All of this information serves as evaluation criteria for your creditworthiness and your payment behavior in the future. The lower the risk of default, the higher the chance of getting an installment loan with a low interest rate.
How to make a loan request for an installment loan?
Basically, every loan request follows the same pattern. There are only small differences in the type of request, i.e. whether you make the loan request online or obtain the loan offers directly from the bank. Because while you usually only get the first conditions through the bank, an online request through an intermediary, all important data queried immediately. So we can offer you individually tailored loan offers with a personal interest rate, but of course they are non-binding.
Every credit request is free. No bank and no intermediary may charge you a processing fee for the creation of loan offers.