Monthly Archives: January 2020


Special repayment for loans Save a lot of money with special repayments

In Germany, many people currently have an installment loan and countless more are added every day. Many borrowers are less concerned about special repayments when taking out their loans, but rather attach great importance to the speed of payment. A special repayment can save a lot of money if the worst comes to the worst. If you currently have an installment loan or are planning to take one out, then you should definitely not neglect special repayment. Why is explained below.

If an installment loan is taken out, this is usually repaid monthly to the lender in constant repayment installments. However, what many borrowers do not know is the fact that there is a right to a special loan repayment . So you can not only repay the loan faster, but also save money. If you currently have the money left over, the consideration of a special repayment can prove to be quite worthwhile for you.


Your credit, your money, your right

Your credit, your money, your right

If you already have a loan in progress, then you know that you usually have to repay a constant monthly installment to the bank over the entire term of the installment loan. Especially in the beginning of the loan, you mainly only pay the interest on the loan. Secondly, the monthly installment also serves the purpose of paying off the loan amount actually taken out. However, the longer the loan term passes, the closer you get to this actual repayment. You then deduct more of the loan amount and less of the interest portion. The reason for this is very simply the so-called residual debt. You only pay the accrued interest on the current residual debt amount and this continues to decrease with every monthly installment.

If you make a special repayment now, then this remaining debt will be even smaller in one fell swoop and you will pay even less interest. Conversely, this means that you can save a lot of money.


You should pay attention to this in the event of a special repayment

loan repayment

  1. You have the right to a special repayment

As a borrower, you have not only obligations but also rights. One of the rights that you have concerns yourself with the subject of “special repayment”. You can repay part or all of your installment loan at any time. This fact applies to all loans taken out after June 11, 2010.

  1. The prepayment penalty

If you repay all or part of your loan before the actual loan term expires, your lender will experience a so-called loss of interest. Of course, the bank would like to compensate for this and therefore has the right to pay a prepayment penalty. The amount of this compensation always depends on the remaining term of the loan. If the remaining term of your loan is more than one year, the lender may charge one percent of the prepayment penalty on the remaining debt. If you are under one year, then it may be a maximum of 0.5 percent.


Does the bank ask for prepayment penalty on your loan?

Does the bank ask for prepayment penalty on your loan?

Before signing the loan agreement, you can find out whether your lender is required to receive such compensation in the event of an emergency. Your loan documents must be accompanied by a document called “European Standard Information for Consumer Loans”. This also sets out the extent to which you are permitted to make a special repayment free of charge each year. If your lender does not demand prepayment penalty from you, then a special repayment will always prove to be worthwhile for you. However, if the bank intends to make such a payment, you must first carry out a few calculations in order to be able to determine whether a special repayment is worthwhile for you.

Please note that as long as the amount of this compensation is lower than it is for the interest on the entire remaining term, a special repayment is profitable. You can also use such special repayments to convert a current loan into a new loan. Here you replace the old loan entirely by taking out a new loan.


When is debt restructuring worthwhile?

debt restructuring worthwhile?

A debt rescheduling from an existing loan can turn out to be worthwhile if, for example, the new loan has a significantly lower effective annual interest rate than is the case with your current loan. If the prepayment penalty is less than the interest on the new loan, rescheduling is also lucrative.


How you can make a special repayment

How you can make a special repayment

  1. Step: create a household bill

The first step is to take a close look at your finances. Create a budget bill on an absolutely realistic basis. Enter your regular income and expenses there.

  1. Step: Set the repayment rate

You can then use the household bill to determine how high the monthly repayment rate for the loan can be. Of course, you should and above all you should not use all the remaining money per month for the loan installment. You decide how much of the remaining monthly budget you want to spend on a loan installment. About 20 percent is a good value for the basis of a repayment rate.

  1. The special repayment and its amount

If you have carried out the relevant calculations in full, you can use this calculation to determine how much you could raise annually as a special repayment. But again, you should not use the entire amount for this purpose. Always leave yourself a buffer for unpredictable events.


Pledge cars in the pawnshop and get credit

Loaning cars in the pawnshop is now often the better alternative to a traditional loan from a bank. The most obvious reason: the house bank and other financial institutions are more than happy to refuse credit inquiries even from long-standing customers. For many people, there are no sophisticated wishes behind their request.

Instead, they are necessary purchases such as washing machines or used cars to finally get a job. Due to the ever-increasing cost of living, many citizens only have to go to the pawnbroker to obtain short-term liquidity.

How can I lend cars to your pawnshop?

How can I lend cars to your pawnshop?

If you would like to pawn cars in our pawnshop, there are six different locations to choose from. These are located both in Bavaria and in the densely populated Rhine-Main area, where experience has shown that many vehicles are on the road. Tell us the most important data of your vehicle to be loaned and choose from the locations

  • Munich
  • Rosenheim
  • Frankfurt am Main
  • Wiesbaden
  • Darmstadt and
  • Mainz

the one that is closest to your place of residence. We need information such as the vehicle type, mileage, and any extras to determine the vehicle deposit value.

What happens at the final meeting?

Based on the vehicle deposit value, we will inform you of the amount of your deposit loan. If you agree, we will make an appointment. This meeting may take place on the same day. In addition to the car, please also bring the vehicle registration document, the vehicle registration document, all subsequently installed extras, documents, and the de-registration certificates.

After you have identified yourself with your ID card and everyone has signed the mortgage loan agreement, you will receive your instant loan directly in cash. You can’t pawn cars easier, faster and more seriously in a pawn shop.

Are cars safe in your pawnshop?

Are cars safe in your pawnshop?

If you want to lend cars to our professional pawn shop, you don’t have to worry about the safety of your car. As a reliable company, we guarantee that you can park your car in an insured building. We always keep an eye on it and ensure that you get your car back the way you gave it to Good Credit as a deposit.

In addition, we take care that your vehicle does not run out of the air during the idle time. That means: We check the tire pressure and keep your car in good condition. In addition, of course, your data is also safe with us, whereby the reasons for the pawnshop remain with you.

Can I combine cars with other vehicles in your pawnshop?

You already know that you can mortgage cars in our pawnshop. Many customers at Good Credit do not want to lend a car, or not only. Of course, we are also your point of contact if you want to mortgage other vehicles. In addition to the cars most often used as collateral, these are

  • motorcycles
  • campers
  • truck
  • Boats and

as well as classic cars (historical vehicles). For vehicles of other categories, please ask us specifically. We will surely find a solution that is satisfactory for everyone.

What are the costs of cars in your pawn shop during the pledge?

What are the costs of cars in your pawn shop during the pledge?

Anyone who lends cars or other vehicles in our pawnshop will be faced with fair costs that comply with the applicable laws. The traditional consist of three elements:

  • mortgage loan fees
  • demurrage
  • interest

The amount of the stand fee depends on the vehicle to be loaned. If you want to mortgage a car, you have to pay $ 2.50 daily, for a motorcycle, for example, the amount is $ 1 per day. We estimate the interest at 1% of the amount of your loan, while 3.5% fees are due. We bill the last two pillars of costs exactly to the day on a monthly basis.

Pawn cars in the pawnshop: Is it possible to extend the term?

You have mortgaged cars in our pawn shop and want to extend the regular term of three months? This is no problem! All you have to do is pay the costs incurred. Then we can extend the mortgage loan agreement for a maximum of three more months. Of course, an opposite way is also an option if you want to trigger your car early.

Call us and the next day your vehicle will be ready. We are happy to help you if you want to sell your car completely. Good Credit will make you a fair offer. Now you can lend cars and other vehicles in our reputable pawnshop to achieve short-term liquidity!