Credit-independent interest on loans (including fixed-rate loans) has the advantage that every borrower receives the same interest.
The interest rate is not determined by the creditworthiness here, regardless of the term, loan amount and creditworthiness, the interest rate is always the same. There are exceptions in which the interest rate is determined by the term and / or the loan amount.
In the case of credit-related loans, the minimum interest is only promised with a top credit rating and most borrowers have to pay a significantly higher interest rate, in this case a fair interest rate is granted for all customers.
Fixed interest rate loan comparison January 2020
In this area, the selection is significantly smaller than for credit-dependent loans. We compare the attractive loans with interest rates that are independent of creditworthiness.
Bad credit rating – the end of the loan application
With banks, a negative private credit bureau entry is often the end of the loan application. Even bad scoring, which rates the creditworthiness low, does not make banks happy because the credit default risk is too high for them. If the banks refuse, then loan seekers can consider a loan without private credit bureau, which is subject to a fixed interest rate, which is intended to minimize this risk.
Non-Credit Interest vs. Credit-Dependent Interest
Loan seekers recognize credit-independent interest in the offer by the fact that only one value is given for the fixed debit interest rate and the annual percentage rate. This is also referred to as fixed interest. Non-credit installment loans are also available for people with poor credit ratings and with private credit bureau entry.
If a range is specified for the borrowing rate and the effective interest rate, for example: from 3.8% to 8.9%, these are loan offers with interest rates dependent on creditworthiness. People who have a very good scoring value then receive the lowest interest, if the creditworthiness is shown less optimally, the higher interest rate is applied, which is also due to the protection against the credit default risk.