The credit rating credit compass has also shown that 97.9% of the loans taken out were properly repaid. Therefore, loans are not carelessly granted by banks, but only to those who in most cases fulfill their obligations. A mere 2.1% of the reported loans could not be serviced. These cases are then exactly those credit rating entries that have a negative impact on your credit rating. If, on the other hand, you only inquire about the conditions for a loan on our calculator, this has no effect on your credit rating score. More exposition at
But in addition to the obligations that a loan entails, you as a borrower also have a lot of rights. Great importance is attached to lending , particularly when it comes to consumer rights. If you want to try to effectively avoid overindebtedness of consumers.
What do consumer rights actually serve when lending?
But in addition to protection against over-indebtedness, consumer rights also have other backgrounds when it comes to lending. The financial world is a world of experts; Numerous technical terms have turned the financial world into an almost impenetrable jungle for consumers in recent decades. In some cases, our credit dictionary for technical terms is needed to understand what the banks want or mean.
In addition, there is the huge range of different banks and credit institutions as well as the possibilities to take out private loans in different ways and with different financing partners. Not only at first glance, this huge network seems very confusing to laypeople; Those who are not familiar with this world quickly run the risk of ending up with very bad terms when granting a loan.
In order to protect the consumer here, consumer rights have been increasingly expanded in recent years. Ultimately, the private individual who wants to take out a loan has a much greater need for protection than large companies that can operate in the background with their own financial experts and generally also with completely different resources.
What rights do you have when it comes to lending?
The rights of the borrower are partly derived from the obligations of the banks and credit institutions, but some are also directly declared and defined as consumer rights. These things are regulated by law in the Civil Code and in the Banking Act. Among other things, it also stipulates that a lender must check the creditworthiness of the potential borrower before he can grant a loan. For this reason, credit rating information is requested, for example, and the borrower must provide self-information on income and expenses (the so-called household bill).
There are also numerous other rights that you as a consumer have. Here we have summarized the five most important points for you.
- the right to comprehensive advice and written explanation
- a simple request must not cost anything (fee-based advice is excluded)
- there must be no hidden costs
- Loans can always be repaid in one go
- at least a 14-day right of withdrawal applies