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Advantages of having a Police Officer Credit

December 12, 2019 0 Comment


With the current best bank policy, the financial world is upside down. Loans are getting cheaper. With police officers’ credit, all ways are available to you at low interest rates. Make the most of your opportunities to discover the financing that ensures you all the benefits.

Using the B-tariff credit example, we expect you to discover the cheapest financing offers not by name, but by comparison. From house building to small loans, we offer you suggestions for getting involved in modern loan conditions.

Police Officer Loan – Home Ownership at a Young Age

Police Officer Loan - Home Ownership at a Young Age

Capital life insurance, the so-called civil servant loan, has long been the typical loan for police officers. The insurance was taken out very early. The contributions to be paid thus remained low. The official was then allowed to lend his life insurance as a term loan. Although the interest was always a little more expensive than with a comparable mortgage loan, the official loan had clear advantages.

With the civil servant loan due at the end of the day, only the current interest charges and the insurance contribution are payable. All in all, the repayment freedom keeps the monthly loan costs affordable, even with starting salaries. The life insurance loan compensated for the slightly higher interest rate on the due date. With the insurance benefits alone, the loan is repaid when it is due.

The gain, in addition to the guaranteed interest rate, was seen as a bonus for life insurance police officers. The gain, often many thousands of USD, had the effect of an additional pension with a “one-time payment”. The bottom line was that the higher interest rates were retroactively offset during the term. Unfortunately, this classic model of real estate financing for civil servants no longer works today.

Low interest rates – no blessing for all financing offers

Low interest rates - no blessing for all financing offers

Every borrower is happy about low interest rates. Nevertheless, there are not only winners through the best bank’s interest rate policy. Classic large investors, such as life insurance companies, find it difficult to make profitable investment opportunities. The gain that made the civil service loan so interesting no longer applies to the current key interest rates. Life insurance companies do not even make it safely to earn the originally guaranteed guaranteed interest.

The model has become uninteresting as a loan for police officers to build houses. The “classic financing for everyone to build a house” remains the mortgage loan. Mortgage rates are cheaper than ever before, but there is still a risk of adversity. An EU directive, national law in Germany since March 2016, puts mortgage lenders under pressure.

Solvent borrowers can pay off prematurely without loss of interest. The loss is difficult to compensate for from the low interest margin, with real estate lending rates in the region of 1.0 percent. As a result, interest rates are now increasing significantly as soon as more than 60 percent of the mortgage lending value is financed by loans. Low-interest loans for police officers who buy a house at a young age can no longer be expected if they are fully financed.

Police officers as consumers – B tariff credit

Police officers as consumers - B tariff credit

In the past, police officers could be sure that the B-tariff loan from a bank always provided them with the most favorable loan terms. Consumer loans for borrowers from the private sector were always noticeably more expensive in a direct loan comparison. As with the civil servant loan, the tide has turned with this special offer for civil servants. In addition a small interest comparison.

The most popular loan in Germany is the small loan between USD 1,000 and USD 3,000 and a term of 12 to 36 months. If exactly this credit scheme were requested from a large online provider for civil servants, the change in the market would show. The special provider charges 4.55 percent APR for 3,000 USD with a 36-month term and B-tariff. This results in a total of USD 210.48 financing costs.

3,000 USD loan for police officers requested in a free loan comparison, is currently offered for 1.79 percent APR. The interest rate offer is independent of creditworthiness, so the extremely good creditworthiness due to the status of an official is even completely overlooked. For the same term, as with the B-tariff loan, the direct bank only charges 82.82 USD in financing costs. The comparison saved $ 127.66 without any additional effort.

How fast can police credit be in the account?

How fast can police credit be in the account?

When it comes to consumer credit, it’s not just about low interest rates. Direct bank loans were usually always a bit cheaper than loans from the house bank. If quick payouts were required because an urgent invoice had to be paid or a special offer was tempting, online customers were previously at a disadvantage. Only since 2014 has the regular online credit remained entirely on the information superhighway. A Social media account and video telephony make the new ID procedure usable for everyone.

A quick installment loan can be recognized in the videoident credit comparison. Police officers can apply for a legally binding loan within 30 minutes. The software then takes over the credit process almost completely. Direct banks can therefore increasingly promise that the requested loan will reach the account within 48 hours. If it takes longer, it is usually the house bank’s booking method that causes the delay.

Conclusion – quick and low-interest loan for police officers

Conclusion - quick and low-interest loan for police officers

Police officers can rely on the recognition of a very good credit rating at all credit institutions. Problems with lending are generally not to be feared.

For the low interest rate, it would not be advisable to rely on traditionally known cheap offers. A quick loan for police officers and low interest rates take 5 minutes to compare the loan. The savings potential rewards the short effort almost princely.