If larger purchases or investments are necessary or are planned, a loan with a term of 180 months can be a good alternative to manage the financial expenditure. A large loan amount is possible with a loan that has a long term. However, the banks are required to provide appropriate collateral that can secure the loan amount. In order to apply for a long-term loan, you should make some preparations.
Preparation for the loan application
Since a loan with a long term is usually a larger loan amount, your own situation should be analyzed carefully. A list of the regular income and the monthly or recurring costs can help to gain an overview of your own situation.
In this way it can be determined which additional monthly charges can be borne safely in the long term. In addition, the highest possible loan amount can be determined. The list of income and expenditure represents a concept that can serve as a basis for bank discussions. The loan with a term of 180 months can be competently made on this basis.
Make inquiries with banks
If a loan is to be taken out, several inquiries should be made to allow a comparison. The conditions can be very different, so it is worthwhile to compare the loans. In this way, the best possible loan with a term of 180 months can be found for your own situation.
Nevertheless, it should be borne in mind that credit inquiries are entered in the Credit Bureau and that credit institutions or banks can view these entries. So that no bad or negative impression is created, it is recommended to inform the credit institutions that you are aiming for a credit comparison.
Requirements for a loan
In order to receive a loan, certain requirements must be met. First, the applicant must be of legal age. Credit institutions and banks make an inquiry to Credit Bureau, so there should be no negative entry if possible. You should also have an employment contract that has been in place for at least six months and is outside the trial period.
A corresponding salary level is also important if you want to apply for a loan with a term of 180 months. Additional collateral such as securities, a property or a second applicant can have a positive impact on the credit terms. Credit institutions often also offer or require life insurance or residual debt insurance as additional collateral. This also offers advantages for the borrower, since insolvencies can be compensated for.
In principle, the loan offers should be examined carefully. Elements such as the rate, the effective interest rate, any processing fees and the offered term can be compared. This makes it possible to find the offer that offers the optimal conditions for the individual situation.