Banks are also increasingly on the offensive in the battle for customers. For example, the loans are advertised on the Internet with particularly low interest rates. Every bank wants to use its low installment loan to cut the interest rate at the top of a loan comparison, because experience shows that loan seekers apply for their loan where the offer is most favorable to them. However, these offers from the banks are almost always purely so-called “decoy offers”, with a low effective interest rate a bank appears at the top in the credit comparison, but if the effective annual interest rate is then marked with a “*” or the word “ab”, then The loan seeker must also read the fine print. This usually means that this loan interest rate depends on the credit rating on the one hand and on the other hand also depends on the term.
What was the loan seekers sees?
With this statement, the banks keep everything open. The loan seeker first sees only the low interest rate on the loan and can have a corresponding offer created. The offer then quickly makes it clear that the advertised effective interest rate on credit is out of the question for the customer. It is often the case that, for example, the interest rate for credit according to advertising would be 4.9 percent and the customer would then be offered the offer of 7.99 percent when making his request. The problem with this is that the customer cannot assess how his credit rating is assessed by the credit institution. The credit ratings are often subjective. In many cases, the banks use a scoring procedure that is not comprehensible to outsiders, on the basis of which the loan offer is created.
Credit inquiries over a certain period of time
As a loan seeker, those who are not satisfied with such an offer usually have no choice but to look at another bank. But here too, the loan seeker has to be careful, if he obtains several offers within a short period of time, for which the Credit Bureau is also requested in advance, the credit rating automatically deteriorates with every new request. The Credit Bureau stores the credit inquiries over a certain period of time and many credit inquiries worsen the credit rating. At some banks, the loan seeker receives a personal offer without the Credit Bureau having already been asked; to do this, he only has to disclose a few data about his personal circumstances and his income situation in advance. These offers are preferable to those for which the Credit Bureau request has already been made.
But whatever the loan seeker does, he will hardly be able to find a bank that actually offers the advertised APR. For this purpose, consumer guards have carried out test inquiries with appropriate test subjects, in which no one has been successful. Not even if the credit rating was evident.
A few banks, such as the DKB or the car banks, have not linked their interest rates to the credit rating. Here, the interest rate depends on the term at most, otherwise every loan applicant who has a clean Credit Bureau and corresponding income receives the loan with the effective annual interest rate, which was also advertised.