Credit for young people – just get started right

Credit for young people – just get started right

Start by. Credit for young people is versatile, low interest and easy.

Young people like you are open to the world. What you do with the money, you decide yourself.

Credit for young people – not a financial adventure

Credit for young people - not a financial adventure

The first self-paid car, the first apartment, a cool vacation – all good credit. “Hey, let’s have something to eat, my Dispo pays”.

Credit for young people – just get started right

Basically, it is neither right nor wrong to borrow money. Nevertheless, credit for young people should not be a financial adventure. In money matters, there is no “youth bonus”. Every credit wants to be paid off. If the rate does not come on time, then trouble is sure. Therefore the guiding principle:

“Every credit is only ok if it improves life and not limits later”. Anyone who decides to take out a loan must be sure that they can afford it.

The best tactic for a happy life is not taking credit. Saving petty-bourgeois, also leads to the goal. This may be boring and slow, but it helps to avoid problems even before they arise. Nevertheless, sometimes things do not change.

A loan for young people can usher in the next stage of life. Without a reliable car, nobody comes to the job. A roof over your head is not enough. Everyone wants to feel comfortable at home. The garbage sofa has done its job. According to that, a loan for new furniture can be useful and correct.

Credit tip – can afford credit

Credit tip - can afford credit

Getting credit is usually easy at first. Clean credit bureau and earned income speak for the grant. Not to overestimate yourself is the real problem. You can afford credit by the monthly rate. It should not be so high that the quality of life suffers. Nevertheless, every loan must be paid as soon as possible.

The longer a loan runs, the more compound interest it costs. But, “what can I pay monthly,” is the follow-up question. If you are unsure, you should mutate for three months to the “philistine”. Just put the sum aside, which is meant to be the maximum monthly rate.

The tip: “practice” for three months, is certainly not good. He works well in practice.

Credit comparison – keep up-to-date with the latest trends

Credit comparison - keep up-to-date with the latest trends

Within a currency area, money is always the same value. There is also no quality difference. Whether the credit for young people comes from Munich or Flensburg, does not matter for the purchasing power on the spot. But lending money is not the same everywhere.

“Banks sell money, like the farmer potatoes”. This old saying fits today. And – banks are competing to borrowers. Comparing offers is as quick as a blink of an eye on the web.

First, call for a free loan comparison. Then enter anonymous loan amount and term.

The rest is done by the software. Whether from the PC or the mobile phone also does not matter. The screen displays a list of possible loans sorted by interest rates. All in a hurry could now simply select the top offer.

In 5 minutes, the loan for young people would have been applied for. But that’s not the best idea. The comparison is usually led by a credit-based interest rate offer. For the “best interest” young professionals are mostly not qualified.

Better shows the 2/3 example, the expected loan costs.

Terms explained briefly – credit lexicon for beginners

Terms explained briefly - credit lexicon for beginners

Who wants to compare properly, must understand what is there. Numerous technical terms confuse the mind.

Important to know are at least:

  • Annual percentage rate or effective interest rate
  • 2/3 example or representative example
  • Credit-dependent interest rate
  • Credit-independent interest rate

Annual percentage rate or effective interest rate:

This is the interest a borrower pays in total. Included are all credit costs except additional services.

For example, the voluntary credit insurance.

2/3 example or representative example:

The 2/3 example is a statutory model calculation. The numbers are based on real borrowers of this provider.

The example shows how much 66 percent of all real borrowers pay. Most important benchmark for comparison.

Credit-dependent interest rate:

Credit rating simply translates to creditworthiness. Not everyone is creditworthy to the same extent. Credit-based interest takes these differences into account.

The bank determines how much interest should be paid exactly on an individual basis.

Credit-independent interest rate:

This is an interest rate that applies to all borrowers. Assuming your credit is sufficient to obtain the loan.

In most cases, this is the cheapest interest on credit for young people.

Compare special conditions – finance cheap and secure

Compare special conditions - finance cheap and secure

Real special conditions are concessions of the bank. Basically, conditions that are better than the law requires.

The most important concession is the right “to be able to repay at any time and in any amount”. That sounds banal, because every bank should be happy if they get their money back from agreed sooner. In practice, the bank may charge lost profit for additional amortization. The bottom line would be annoying to pay more than necessary.

Because it makes sense to borrow for young people with small binding installments. Small fixed installments get financial leeway. Of course repaying fast is also important. By special repayment, long-term credit and small installments become credit with fast repayment. But only if the bank in the loan agreement grants the right to free special repayment. Otherwise, she expects “lost interest income” against.

Plus a savings tip: No credit insurance. The insurance is always expensive. For additional redemption, the contribution is not recalculated.

Credit for young people – from private

Credit for young people - from private

The entry into professional life is no longer as clearly regulated as it used to be. Not education and then a permanent employment contract are the norm. Temporary work, temporary work, small starting salary corresponds more to reality.

The credit for young people has an impact. Bank credit could be excluded. It would be possible in difficult cases, a loan with guarantor or from private. Credit for young people from private, everyone should remember the names Smava and Auxmoney.

Both portals convey serious credit from private to private. Private lenders grant easier credit.

But, under difficult circumstances, credit costs more interest. Therefore, the appeal to consider even more carefully whether the desired credit for young people is really necessary. Also, whether the monthly installment actually fits in the budget.

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