Borrowers don’t have to look far for a loan without fees. In October 2014, the bank declared the processing fees charged by credit institutions for lending to be inadmissible.
We always look at the total costs of the financing in our financing recommendations. You will receive authentic tips on how you can finance at low cost and also overcome “credit hurdles”.
Credit without fees.
Your search for the loan without fees can be answered in four words. The long-awaited judgment was made in October 2014. Processing fees, such as those charged by most banks for a long time, are not legal. Borrowers may reclaim any fees paid in the past ten years.
The best way to apply for regular credit without processing fees is online. Free loan comparisons on the Internet make it easy to find a suitable loan offer. A maximum of three mouse clicks is required so that a credit comparison calculator lists the suitable offers. Enter the loan amount, desired term and the purpose.
A list of possible loan offers, sorted by interest rate, appears on the screen. Since the Federal Supreme Court ruled on fees, each of them is a loan without fees. The list is almost always led by a credit-dependent interest offer. Unfortunately, financing depending on creditworthiness is not worthwhile for all borrowers.
Choose the right interest rate – personal creditworthiness influences interest
The vast majority of all who are looking for a regular loan can assume that they have a sufficient credit rating. With a normal good credit rating, the question of the cheapest interest rate is the focus of the loan search. Credit-dependent loan interest rates often impress with their low entry interest rate. But, only borrowers with extremely good credit ratings have a chance to finance at this interest rate.
The representative example reveals how high the interest rate that 66 percent of all borrowers pay. This interest rate is often higher than the cheapest loan offer at the non-creditworthy effective interest rate. It is worthwhile for the vast majority of all borrowers to look at interest rates that are independent of creditworthiness. A chance on the window rate is usually reserved only for higher officials.
In addition, people with below-average credit ratings should look at interest-rate offers that depend on creditworthiness and have a higher entry rate. If the creditworthiness is weaker, the credit default risk increases, but the providers offset the risk by adjusting interest rates. In this case, the individually adjusted interest rate offers scope to obtain a loan without any intermediary fees.
Loan from the intermediary without fees – is that possible?
Credit brokers live by concluding a loan brokerage contract in accordance with BGB 655. If the loan is successfully brokered, they receive remuneration in accordance with 655c. At first glance, paying credit without paying agency fees sounds contradictory. No intermediary could run his business successfully if he received no money for his work.
Nevertheless, it is not automatically said that the customer has to pay the agency fee. A classic example would be the loan without Credit bureau from Liechtenstein. Borrowers can apply for the offer directly on the homepage. In this case, an intermediary would be avoided. Nevertheless, the loan costs exactly the same as when applying for a loan through an intermediary.
The reason is that the bank settles directly with the credit intermediary. She pays his work directly. The agency fee may be included in the interest. However, from the borrower’s point of view it is actually a loan without paying fees to the intermediary. At least he doesn’t save a penny if he does all the work himself. On top of that, he misses the chance that a broker will offer him a lower-interest offer despite Credit bureau.
Credit mediation pro and contra help to credit
People are hoping for help from the credit intermediary in order to find the most low-interest solution possible for the individual loan request. The assistance often pays off, especially for special loans. The bottom line, despite fees, is that borrowers can save a lot of money, especially when it comes to real estate financing. The interest saving models are particularly often based on publicly funded loans.
For example, a bank loan (program 151) could currently be financed to a minimum of 0.5 percent instead of 0.75 percent APR. With a financing sum of USD 100,000 per residential unit, 0.25 percent interest savings (fixed over 10 years) can be a lot of money. The mediation industry has a bad reputation if generous loan offers attract negative Credit bureau.
To put it cynically, it would even be loan offers that fit perfectly with the loan without any fees for the brokerage. Fast-moving advertising slogans are primarily intended to attract customers. They are usually sold on the principle of hope, insurance, retirement or capital investment. The loan will definitely remain free of charge as it is promised but will not be approved.
Serious credit brokerage – especially when there are problems
Credit brokerages can be better than the reputation of the business. Best Lender and Good Finance provide proof that it can also be done seriously. As the market leader for credit brokerage from private to private, both portals are certainly under critical scrutiny by the media.
So far there has been no tangible scandal in the company history of both companies. Best Lender is even explicitly praised for its work by independent institutions. The portals do not offer a loan without fees for successful loan brokerage, but a serious credit opportunity.