Financial reserves no longer exist in most German households. The horrendous additional costs usually eat up the entire income, so that a loan is also considered for the purchase of furniture. Financing can be done through the dealer but also with a loan to buy furniture from a bank.
The furniture store loan – the prospects
From time to time you want to design and beautify your home differently. In most cases, this includes new furniture. Think of a new living room cabinet, a new couch or a new kitchen. In most cases, a small loan is enough to implement the wishes. When targeting a new kitchen, the loan amount is likely to be higher. Even if the entire apartment is to be renewed. If you move to a new apartment, it is also advisable to buy new furniture with a loan to buy furniture.
Since there are no financial reserves on the side or they are fixed, you opt for a loan to buy furniture. The furniture stores outbid themselves with their offers. The focus is on 0% financing just like a classic installment loan. Furniture stores act strategically, they assume that if the customer reads “we will give them the interest”, the buyer is suggested that he is making a very special bargain. In most cases, the interest is included in the balance, because nobody has anything to give away.
But it’s not just that, many buyers shy away from the bank and conclude a loan agreement in the furniture store. Consumers should know that very few interest rates are offered. The furniture stores can of course pay for the convenience. Whose credit rating is not the best, he may have a negative entry in his Credit Bureau, so he may be lucky and the furniture store still finances the furniture purchase. Furniture stores are not as strict as banks. The furniture remains the property of the furniture store until the final payment.
The loan for buying furniture – the type of loan
Spontaneous purchases are often regretted. Often you do not really know where you want to put the furniture or you do not find a favor in the apartment. In this case, there should be no spontaneous purchases at the furniture store. Good planning is also important when buying furniture. The credit for buying furniture should also be planned well.
If a bank loan is taken out, the customer could, for example, act as a cash payer at the furniture store. It is not uncommon for discounts or price reductions to be offered.
If you want to take out the loan for buying furniture from a bank, you should definitely carry out a loan comparison beforehand. At a glance, he receives a list of all cheap providers and their conditions. He can look at the interest rate and other special services. The customer should know that consumers do not always receive the interest shown by providers on their pages. Interest is calculated depending on the creditworthiness, ie whoever has a good creditworthiness also receives good interest and vice versa.
But the interest rate is not everything. So free special payments should be allowed. The financial situation can change from time to time and the loan could be redeemed prematurely. If no special payments have been agreed, the bank charges itself costs. With the interest rate, the customer should pay attention to the effective annual interest. Only that says what the loan costs in total.
Not so few customers flirt with their overdraft facility. This is provided by banks to their solvent customers. A loan that is quickly applied for and easy to use. Most banks provide two to three net monthly salaries. So if someone earns 2000 USD, he could have a disposition of 6000 USD. The use of the scheduling is only conditionally recommended.
It is a very expensive loan. The interest rate is in the double-digit range. Anyone who overdrafts the approved credit line will be charged with interest again. An interest rate of 18% can certainly arise. A normal loan would be strictly rejected with an interest rate, since it is already in the area of usury. The overdraft facility can be used if, for example, a higher payment from an insurance company or a subsequent payment of a salary is due. If the overdraft facility is on target for two to three months, that would be acceptable.
The loan for buying furniture – the bad Credit Bureau
Before banks approve loans, they check the creditworthiness of their customers. The income is also put to the test on the Credit Bureau, and the permanent position is also checked. If these guidelines are met, the bank approves a loan for the purchase of furniture. However, if the customer has noted negative entries in his Credit Bureau, banks tend to say no to a loan for buying furniture.
A negative entry can quickly arise. An invoice was not paid and the entry was made. Many banks do not see a soft entry as a loan rejection. But finding them is difficult. A credit broker could do that for his clients. He knows banks that also approve credit if the entry is in the Credit Bureau.
However, there are some things to consider when hiring an agent. So prepayment or preliminary costs should not be paid. Also insurance contracts that make credit approval easier should not be signed. A loan processed by a credit intermediary only costs when the loan is approved.
In most cases, the credit intermediary will offer the non-Credit Bureau-free loans from abroad. Credit Bureau plays no role at these banks, only the income must be available. It must be so high that it is above the garnishment exemption limit. A permanent position is also a requirement for a loan to purchase furniture.
That is why unemployed people, students and the self-employed do not receive a Credit Bureau-free loan. The unemployed receive state benefits that cannot be attached, the student has no income and the self-employed have no stable income situation.