Credit with no upfront costs: Get cheap deals now


Brief overview: What is a loan without upfront costs?

Brief overview: What is a loan without upfront costs?

  • Always with no upfront costs: A loan offer should always be without upfront costs. Otherwise there is something wrong with the offer, as interest or fees may never be calculated in advance.
  • Cheap online credit: A cheap online loan is a real alternative to the classic branch bank loan. It is usually particularly cheap and can be requested directly and conveniently from home.
  • Unfundable: the bank rejects your application? Then there are a few options you can still consider. In any case, avoid any dubious offers.

Are you looking for a loan with no upfront costs? Basically, it should be mentioned that a serious loan offer is always free of charge. With a loan, the bank earns from the interest that you pay with your monthly installments.

A serious loan offer is always free of charge.

If you get a loan offer that requires you to pay any costs before you get the money, your alarm bells should go off because something is wrong here.

There are, of course, loans with which you make a down payment. However, this deposit is not used to cover any preliminary costs.

Do not confuse: credit with down payment

Do not confuse: credit with down payment

Often, the topic of “Loan without upfront costs” is confused with a down payment of the loan. With a down payment, you basically do not service the cost of the loan. The down payment ensures that you have a higher repayment component right from the start, which means that cheaper rates and possibly a lower final rate are due.

This model is very common in a car loan. For example, to get a $ 30,000 loan for a car, you would have to pay $ 5,000 as a deposit. Then 20,000 will be paid in monthly installments over 5 years and the outstanding $ 5,000 will then be paid in a final installment. This is only intended to be a simple illustration. Of course, the interest would still have to be taken into account here.

Even with larger real estate financing, the banks may require a down payment in the form of equity. However, this depends on the financing volume and your financial circumstances.

The bank must therefore not require you to pay the interest for the entire term in one sum directly at the start of the financing. The interest payment is made in installments and in a possibly larger final installment.

It would also make no sense to settle the interest directly at the beginning, since the term of the loan may be shortened due to special payments or early repayment. You only pay interest on the actual amount and term.

How to apply for a loan with no upfront costs

How to apply for a loan with no upfront costs

In order to apply for your loan without any upfront costs, it is always advisable to carry out a loan comparison first. Because the conditions of the providers are very different. In the best case, a credit comparison can save you several hundred dollars. Proceed as follows:

1. Credit comparison

Use our free credit comparison calculator to find the best offer for your case. All you have to do is enter the necessary loan amount, the term and the use. It is not necessary to enter personal data for the comparison. By changing the term, you can already make the optimal selection for a possible monthly rate that you can afford financially. The longer the term is chosen, the cheaper the monthly rate. However, the interest rates increase with a longer term.

2. Apply for credit online

Applying for a loan is no longer a problem today. You can do this conveniently from home. After you have used the comparison calculator and determined the best offer for you, you can directly apply for a loan online. To do this, you then have to provide your personal data and information on your financial income. A credit check is already being carried out and you will receive a preliminary acceptance or rejection after sending the data.

3. Submit documents

After applying for the loan, you will receive a preliminary commitment. For the time being, because the bank now wants to check some documents manually. To do this, you usually have to submit your pay slips and / or bank statements and possibly also your employment contract. You must also send the original loan application signed to the bank and carry out an identification procedure. This also works very modern these days, for example by sending the documents to the bank via upload. The identification process can now also be carried out online.

4. Wait for withdrawal

After checking your documents, you should receive information from the bank promptly. In the best case, you will receive the information that your application has been forwarded to the payment department and thus approved. The money should now arrive in your account within a few days. At the same time you will be asked to pay the installments. The best thing to do is set up a standing order.

What you can do if you are not financially viable

What you can do if you are not financially viable

It is not uncommon for consumers to receive a rejection of the loan request. There can be different reasons for this. Perhaps your income is insufficient or you do not have a permanent job. However, there may also be negative entries in your Credit Bureau, which may be reasons why the bank does not approve your application. However, you shouldn’t stick your head in the sand right away, but consider one of the following options.

2. Borrowers

A second applicant or borrower can be entered in most credit contracts. If you are not financially viable as an individual, it may work in combination with your partner. With a second borrower, the risk of the bank is divided into 2 people and your chances of being approved increase.


An option is also the so-called guarantee. A guarantor is entered in the loan agreement, which virtually guarantees that the installments are always paid on time by the borrower. If this is not the case, the bank can request payment in installments from the guarantor. This model is often found, for example, in young people in training or studying who have their parents registered as guarantors.

Personal loan

Another option is the so-called personal loan. Every person is entitled to grant a loan to another person. This is mainly based on a high level of trust. So if you don’t get a loan from a bank, there may be someone in your area who is a bit wealthier and lends you the money. However, the conditions should also be laid down in a contract. You can download ready-made templates from the Internet.

Warning of the so-called “loan sharks”

Warning of the so-called "loan sharks"

When some people do not get a loan from the bank, they often tend to solve your problem elsewhere and may take out a loan offered by a so-called loan shark.

What is a “loan shark”?

Loan shark (English loan shark, shylock, gombeen-man) is colloquially understood in the economy as economic subjects who offer loans with poor creditworthiness to loans at particularly disadvantageous credit terms and in particular demand usury interest. (Source: Wikipedia)

Credit sharks have recognized the plight and are taking advantage of it. Caution is advised here, as you may then take out a loan on particularly bad terms. In the event of non-payment, you will also try to collect the money in a very unconventional way.

Here, the topic of “credit without upfront costs” comes up again. With such a loan shark, it can also happen that you should first pay any costs before you would receive a payment of the money.

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