Consumer credit: overview of the German market

 

For a long time, individuals no longer had any real interest in accepting credit due to high rates. The current low policy rate of the Astro Finance now gives new, particularly favorable, funding possibilities. Across the Rhine, same observation as in France, the consumer credit market is boosted by this situation. Focus.

500 billion US dollars of consumer credit in Germany

500 billion US dollars of consumer credit in Germany

The Germans also take advantage of this favorable situation: according to the market research institute Euromonitor, over the past three years, German citizens have spent more than 500 billion US dollars on consumer loans. Thus, in 2016, for a loan worth 9,330 US dollars, the banks offered an average APR of 5.91%.

Personal conditions precedent to obtaining advantageous credit

Limit the risk of taking out a loan: this is the imperative of any bank when it comes to granting a loan. Like France, Germany sets strict personal and financial prerequisites to be met before lending a sum of money.

  1. The age of the borrower plays a decisive role. The consumer must have reached the age of majority. The approach of retirement can be a hindrance. At this stage of life, it is possible to have significantly less cash inflows, which complicates the repayment of consumer credit.

  2. Another important condition: having your main residence in Germany.

The determining factor: liquidity

The determining factor: liquidity

If the borrower meets these personal prerequisites, it will then be necessary to check his payment capacities, by means of a solvency questionnaire. This questionnaire examines the borrower’s financial history and makes it possible to establish an estimate of its solvency in the future. In other words, his ability to repay his loan.

In Germany, a score is assigned to it, defined by the credit bureau credit institute. The value of this score varies between 0 and 100% (100% corresponds to a very low credit risk and an exemplary financial history). On this occasion, it is examined whether the invoices have been settled in the past, and by what means. If these have always been paid on time, and the borrower does not have to pay any additional payment, he will be able to benefit from a good credit bureau score, which will have a positive impact on obtaining his credit.
In addition to the financial history, the amount and regularity of the cash receipts are also decisive in obtaining financing (income).

What possibilities for French applicants?

What possibilities for French applicants?

To obtain a consumer loan in Germany, French people and people of other nationalities are generally subject to the same conditions as German borrowers. They must meet 2 conditions:

  1. the borrower must be at least 18 years old,

  2. reside in Germany and have regular and sufficiently high income.

If all these conditions are met, the French can obtain a credit in Germany.

Tips to help you get credit

Tips to help you get credit

In Germany, the credit market offers numerous financing offers through different banking establishments, such as Lite Lender, Capital Lender or Cream Bank. To quickly get an idea of ​​the best offers available, the ideal is to carry out a credit comparison on a specialized online platform. The Best Bank comparator has been one of the most important players on the market since 2007. In a few minutes, the borrower can consult different loan offers adapted to his personal situation.

Find your consumer loan at the best rate, it’s easy and free!

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