Sufficient small loan for renovation.

A small loan for renovation is sufficient for most renovation projects. The overdraft facility for the renovation costs is temptingly convenient.

With our loan advisor on small loans for home renovations, we would like to draw your attention to low-interest alternatives. – Because, even with small loan amounts, short-term financing is not allowed. Installment loan is always significantly cheaper than the overdraft facility.

Interested parties with negative Credit bureau learn whether a loan without Credit bureau could be worthwhile for the renovation.

Small loan for renovation – public loans?

Small loan for renovation - public loans?

Renovation loans are in demand. The Federal Government makes a lot of advertising for creating age-appropriate living space. KfW currently grants a loan of 0.75 percent effective interest and even a subsidy. (Reconstruction Credit Institute). But does it also grant a small loan for the renovation of the handyman?

A closer look at the programs reveals that the federal government has no heart for the popular DIY of the home improvement scene. Public grants are only granted if companies undertake the renovation and renovation.

Do-it-yourselfers who want to save a lot of money for the craftsman do not have access to public funding. Still, it doesn’t pay off to explode to expand renovation costs just to get a publicly funded loan.

Do-it-yourself – save money and lend a hand

Do-it-yourself - save money and lend a hand

A small loan for the renovation finances the usual financial needs of a home renovation. Primarily, colors and fillers are required for living rooms up to a maximum of decorative plaster. Renovation work does not penetrate deeper into the building structure. Renovations are primarily optical corrections. They are among the tasks of the living space user. For tenants, the rental agreement even specifies the intervals at which the rooms are to be prepared.

Renovations are the optimal field of activity for do-it-yourselfers. Depending on which room is to be renovated, some tools are added to the material. Overall, the focus of the costs in DIY is on the cost of materials. The work invested is your own contribution and does not have to be paid. With which the financing sum should not overwhelm an ordinary household budget.

The mistake that many make when renovating and throwing a lot of money out of the window is the type of financing. Your “self-approved” small loan for the renovation is the overdraft facility. The checking account accepts the overdraft without complaint. In the background, the house bank even rubs its hands. It collects horrendous overdraft interest for this renovation loan. The usual overdraft facility in Germany costs up to eight times the interest rate on an installment loan.

Credit volume and availability of money – small loan

Credit volume and availability of money - small loan

There is no fixed definition of the volume of a small loan. Depending on the loan provider, this mostly means credit volumes between USD 1,000 and USD 3,000. But also loans up to 5,000 USD can still be rated as small loans. Small loans are often referred to as instant loans. The simple online loan application is followed by an almost completely automated approval process.

Only income and the household bill are checked. A computer program compares the applicant’s personal score with the default setting and the loan decision is made in real time. ImprovedLend is a modern small loan for renovation from the Internet. Thanks to “Videoident”, it can be received in the recipient’s account within 48 hours of applying for a loan.

Interest rate level for small loans – how big is the savings volume?

Interest rate level for small loans - how big is the savings volume?

If you apply for a good loan comparison, nobody has to be afraid of the financing costs. Instead of 14 -17 percent for the overdraft facility, consumers only pay between 2 and 4 percent effective interest on the installment loan. As of April 2016, the loan comparison shows 2.69 percent APR for USD 5,000 small loan with a term of 36 months.

The chosen credit example costs a total of $ 207.48 financing costs. Monthly payments of 144.65 USD would have to be made. In comparison, the overdraft facility as a small loan for renovation is extremely expensive. Assuming a realistic 16 percent and repaid in 36 months, the financing would cost USD 1234.12. The household budget would have to spend USD 173.17 a month to balance the current account after 36 months.

The calculation example proves that the overdraft facility for financing the renovation is an expensive pleasure. The installment loan saves well over 1,000 USD compared to overdrafting.

Loan without Credit bureau – small loan for the renovation costs?

Loan without Credit bureau - small loan for the renovation costs?

Probably the best-known small loan with a negative Credit bureau is the foreign loan without Credit bureau. The small loan is also known as a Swiss loan or housewife loan. Small foreign credit offers a credit opportunity to people who fall through the rush of modern credit checks. If a negative Credit bureau entry prevents regular credit offers from being accepted, Credit bureau-free financing can be the solution to the credit problem.

Nevertheless, no applicant for small loans without Credit bureau should have too high hopes for the renovation. The credit check is done by hand. It is tough. Practically without exception, only people whose only problem is the negative Credit bureau qualify for the Credit bureau-free small loan for renovation. The interest rate level does not differ significantly from the overdraft facility. As of April 2016, the annual percentage rate for a 3,500 USD net loan would be 11.15 percent.


Increase credit for additional funds

Would you like to increase existing credit or maybe prefer to reschedule? There can be good reasons for both variants. We present the loan increase as an alternative to debt restructuring. Find out what the benefits of each offer are.

How the whole thing works despite negative private credit checker, we use the example of the private credit checker-free international loan. Find out more about the difference to a credit increase despite private credit checker.

Increase credit – create additional liquidity

Increase credit - create additional liquidity

The desire to increase or reschedule a loan is based on the adjustment of the loan supply to the current requirements. The offers are not the same. Debt rescheduling is always based on taking out a full new loan. In this case, everything would be renegotiable – from the interest rate to the installment amount and the term. The debt rescheduling loan would not even have to come from the current lender.

The situation would be different with the credit increase. The credit increase increases an existing loan. In principle, everything remains the same, only the term adapts to the new loan amount. The credit increase is offered by credit institutions that do not tolerate two ongoing loans of the same credit model. They enable existing customers to get additional credit even before the legacy burden has been settled, by increasing the loan.

A third model of increasing credit is a mix of debt restructuring and top-up. A new installment loan would be concluded with the current lender. This loan initially repays the legacy burden through a partial amount of the loan amount. The bank instructs the borrower of the difference. The question of which loan model proves to be advantageous for personal loan requests cannot be answered in a serious, generalized manner.

Who is the debt restructuring worth for?

Who is the debt restructuring worth for?

Instead of increasing debt, it is especially worthwhile for borrowers whose personal creditworthiness has improved since the existing loan was taken out. Regular debt restructuring offers a complete restart. All relevant debts would be combined, additional loan requirements added to the transfer fees and the entire package would be refinanced. This route would be particularly interesting for borrowers with special loans.

A special loan that was set up despite private credit checker costs significantly more than a regular loan. Simply increasing the existing loan would maintain the high risk interest rates, even though the credit risk has normalized. Around three times the interest rate for the special loan would have been roughly estimated. To grant this extra money to a bank out of misunderstood gratitude would be overly benevolent.

Borrowers with good credit ratings are in demand from regular credit providers. Only a debt rescheduling loan can help at the currently low interest rates that commercial venture credit providers cannot offer due to their own refinancing. Free loan comparisons help to find the right loan offer. Anyone who is allowed to grant the debt rescheduling loan should decide the interest required and other optional loan terms.

For whom is the loan increase worthwhile?

For whom is the loan increase worthwhile?

Borrowers who only want to increase their loan but are otherwise satisfied with their existing installment loan enjoy the benefits of a credit increase. There is no need to search for a provider because the contact person for the loan from the previous lending transaction has been determined. If the key interest rate goes up again, borrowers will increasingly opt for an increase in order to maintain the old interest rate conditions.

To be allowed to keep old credit conditions has financial advantages if the general interest rates rise again. The increase in credit is always worthwhile for borrowers for whom debt restructuring would not be an alternative. It is intended for borrowers with negative private credit checker who, for example, repay a loan from bank. With an unpaid private credit checker entry, only this foreign bank can be considered as a lender anyway.

The credit increase is possible as a hybrid between debt restructuring and credit increase. Borrowers with a loan of USD 3500 and a remaining debt of USD 1500 may increase their installment loan. Borrowers with an original 5000 USD loan from a residual debt of 2000 USD. The old loan would be replaced by the top-up loan at current loan terms. It would also be conceivable, thanks to the built-up trust, to obtain up to $ 7,500 credit more easily without private credit checker.

Increase private credit checker-free credit – easier application conditions

Increase private credit checker-free credit - easier application conditions

Obtaining a higher credit without private credit checker often only fails if the current employer has sufficient length of service. For 3500 USD credit, 12 months would have to be proven, for 5000 USD credit 36 ​​months and for 7500 USD 48 months. Borrowers who adhere to their repayment agreement with no problems enjoy the special confidence of the bank.

Internally, you run under the name of top customer. If such a top customer wants to increase their credit, they have to make the loan application again and provide the corresponding proof of income. But the top customer is released from the great hurdle of almost endless length of service. His employment contract only needs to be unlimited and outside the trial period. Instead of 12 months to increase to 3500 USD, 4 months with the company are sufficient.

For larger increase requests, for example to 5000 USD not 3 years, but only 7 months.

Increase credit – difference despite private credit checker without private credit checker

Increase credit - difference despite private credit checker without private credit checker

Only one credit provider is eligible for the foreign loan with negative private credit checker and unpaid private credit checker entry. There is no possibility of a loan comparison, more favorable interest rates and loan conditions through debt rescheduling to another loan provider.

Increasing credit despite private credit checker is not the only way. A debt rescheduling would be possible on the credit of another loan provider. Credit institutions that might accept a negative private credit checker entry would be found using the good credit company credit comparison. good credit company offers the alternative to bank credit despite private credit checker, a private loan, through its credit marketplace.