Basically, a loan is taken up quickly – at least if the credit rating is right. A more or less short consultation with the bank, or, what is often faster, an online loan application, and within a few working days the requested money can go into the borrower’s account. But be careful: every year thousands of people register personal bankruptcy in Germany – is borrowing the first step in overindebtedness?

The question of whether you really need a loan should always be seriously considered and answered. This is also linked to a second, possibly more important question: can I afford the loan, can I afford to repay the borrowed amount? For your own safety, everyone should do some kind of credit check before signing a loan agreement. If in doubt, it is the right decision to carry out a budget calculation, i.e. to offset the fixed income with the fixed and movable expenses.

The W questions for a loan

The W questions for a loan

Are you considering applying for a loan? Then ask yourself the typical W questions:

  • What I want?
  • Why do I want this?
  • What loan do I want and after what time do I want to have it repaid?
  • What collateral do I have?
  • What would be the disadvantages of a loan waiver?

Credit request

Credit request

If the credit request can still be answered with a clear conscience after answering the above questions honestly, then the next step is due to the obligations of a borrower: the information about different types of loans and types of loans, because not every loan is suitable for everyone Project that is to be financed, and depending on which one type of financing comes cheaper than another.

It is not uncommon for a credit line with an excellent credit rating to be a fairly cheap option to finance certain projects in the medium term.

Think carefully about whether you really need the loan. Exchange ideas with a close relative or a very good friend to get a second opinion. Do not accept the first offer for a loan – carefully compare the terms of the different banks.