Recently updated on November 19, 2020 at 12:03 am

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Tuning & Buying: Why Good Credit Is Important

Are you planning to buy a new car or do other tuning on your own vehicle in the near future? Most of the time you can't avoid taking out a loan to pay the costs. But this only works if you have a good credit rating. So what needs to be considered in advance?

How banks handle lending

For banks, only one thing plays a decisive role before deciding whether to grant a loan or not: Can the borrower repay the amount in the long term without problems? In order to check this, on the one hand, they request proof of salary, which is supposed to prove that monthly, secure income is available. On the other hand, they also check the creditworthiness of the potential credit customer. This provides information about whether his payment behavior is reliable and which other obligations exist in the long term. If all examinations are positive, there is a loan approval. If the bank sees a risk, there is a rejection. Since the bank makes an economic profit on the interest on its loans, it would not be advantageous for it to give a loan to customers who cannot be repaid.

Credit check: You can do that yourself

With the help of the five major credit bureaus in Germany, you can check your creditworthiness in advance and determine whether you can expect a loan approval or rejection. That works for example with Scorekompass as one of these big credit bureaus (check creditworthiness from scorekompass.de). The reason why the topic is negative for many is due to the economic threats with negative SCHUFA entries, which have had an effect for a long time. However, it is a fact that 91 percent of Germans have no negative entries and the topic is therefore not that bad. So if you check your creditworthiness, you get access to your very own creditworthiness score. This is calculated on the basis of individual data in complicated algorithms and, as a result, represents a good average value of how reliable one is in terms of payment technology. If there is a green light, funding is available any car nothing in the way.

Not a good score: what to do?

If the result is not satisfactory, the project of tuning or buying a car is not done. Because the score can be improved with a few targeted measures. One should clean up current accounts and credit cards, regulate the monthly costs in relation to the income and take up as little credit and financing as possible. If you have current loans, you can reschedule them to reduce the installment burden. In addition, the provider contracts (e.g. mobile communications, electricity, internet) should be cleaned up. If old, no longer current entries cause the poorer score, they can be deleted. Those who take this into account noticeably improve their creditworthiness and have better chances when it comes to credit issues.

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Maybe you also want to read a report from other car brands? Apart from the above manufacturer, you'll wonder what vehicles these days Coilovers, alloy wheels, Chiptuning and the craziest foiling built in & attached. Take a look at the following manufacturers: ALFAROMEO, ALPINA, AUDI, BMW, CADILLAC, CHEVROLET, CHRYSLER, CITROËN, DACIA, DAEWOO, DODGE, FIAT, FORD, HONDA, HYUNDAI, INFINITI, ISUZU, JAGUAR, JEEP, KIA, LANCIA , LANDROVER, LEXUS, MASERATI, MAZDA, MERCEDES, MINI, MITSUBISHI, NISSAN, OPEL, PEUGEOT, PORSCHE, RENAULT, SAAB, SEAT, SKODA, SMART, SUBARU, SUZUKI, TATA, TOYOTA, VAUXHALL, VOLVO, VW and ALL others.
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