A 14000 USD loan is no longer a small loan, but it is still easy to obtain from banks if the credit rating allows it. A small car can be bought with a 14,000 USD loan, a super modern kitchen or a new bathroom can be purchased. You can see there are many reasons for the loan and there are just as many loan offers. The conditions will show to what extent the customer can meet the conditions of the bank.
The overview of a loan
Before banks approve a loan, they will work out a budget with the customer. This shows whether the customer can pay a loan at all. The income is compared with the expenditure, in the best case there is a remaining amount. However, it should not be used for the full rate. Financial experts advise 1/3 of the remaining amount to be used as a loan installment. This leaves a small financial buffer that is always needed.
The first obstacle would be removed with the budget. The bank then checks the income, which should be above the garnishment exemption limit. With a single one assumes a net price of around 1,100 USD. If the income is sufficient, you may have the opportunity to pledge if the customer can no longer pay the 14,000 USD loan. However, there are banks that approve a loan with an income of 700 USD.
How a customer should manage to pay his living standard, rent, additional costs and other things with 700 USD is then in the stars. Those who are satisfied with bread and water should be able to make ends meet. There is also to be considered with the 14000 USD loan that it has to be paid off over several years. That he cannot afford anything other than the loan installment in the following years. To what extent this is feasible is of course ultimately up to the customer.
If the income allows a credit of 14,000 USD, the loan term should be considered. A long loan term leads to low installments and remains affordable, but the loan becomes more expensive. A short term brings high rates, the loan becomes cheaper, but not all customers can pay high rates. In general, the rate should always be adjusted to the income.
With regard to the rate, it should perhaps be noted that it should be set in such a way that it can be paid in the event of sudden unemployment or serious illness with subsequent disability.
Not only the income is important, also an impeccable Credit Bureau without negative entries is part of the credit check. If the Credit Bureau has negative entries, the bank could refuse the loan. The risk of default is too high for her, because the bad Credit Bureau already signals payment irregularities.
However, if the customer urgently needs the 14,000 USD loan, he ultimately has to name a second borrower or a guarantor. The credit opportunities can then be increased with these people. However, whether the bad Credit Bureau no longer plays a role should be questioned.
Usually, customers with bad Credit Bureau can look around for the Credit Bureau-free loans. But the loan amount will be the problem, because the highest loan amount with this type of loan is 7500 USD. In order to receive the creditworthiness, the income must be exceptionally high. Likewise, several years of employment have to be proven.
Possibly with the help of a loan agency at a German bank the 14,000 USD loan could be approved. Here the customer would have to look for a reputable broker who does not charge any upfront costs and does not have any insurance contracts signed in order to still get a loan. The loan request and any loan offer that may be provided are always free of charge.
In addition to sufficient income, the customer must also provide evidence of permanent employment. The employment contract may not include a trial period and it may not be limited. If the customer can meet these conditions, the loan is also approved.
The credit comparison
A credit comparison should be carried out in order to obtain favorable credit terms. The customer enters the desired loan amount, the term and the selected rate and then receives a list of all providers. The customer can then compare the offers with one another and choose a cheap lender. The loan application can be made directly via the comparison.
Of course, the customer can also go to his house bank and apply for the loan there. Experience has shown, however, that it is not the branch banks but the direct banks from the Internet that have the better conditions.
The focus should not only be on the effective annual interest rate, which is also crucial, but on the general flexibility of the loan. If the customer receives annual premiums or special payments from his employer, free special repayments should be noted in the loan agreement. Then the special payments can flow into the loan, which would be paid faster.
If these special repayments have not been agreed, the bank can calculate a prepayment penalty. In doing so, it absorbs the loss of interest it incurred. Rate breaks are also not wrong. It can get tight again and again during a multi-year loan term, so that one or two installments could compensate for the bottleneck.
The customer should also know that the interest shown in the loan comparison is not valid for every customer. Interest is usually calculated on the basis of creditworthiness, which means that those with good creditworthiness also receive a good interest rate and vice versa.