An analysis of the latest Bundesbank figures by the Good Lenders Credit credit portal shows: At the beginning of the year, Germans borrowed significantly more money from consumer credit than at the end of 2019. In January alone, Germans borrowed around 10 billion dollars. That is around 3 billion dollars (43%) more than in December 2019. However, this is only the beginning. The Good Lenders Credit analysis also shows that, on average over the past 10 years, loan requirements have continued to increase from March and peaked in the second quarter of the year on average. Regardless of when consumers take out a loan: They often pay interest that is too high. Because for borrowers alone, it is almost impossible to keep track of the credit market.
Banks only advise consumers on bank loans
Bank advisors generally do not advise across products or providers. They act on behalf of their own bank and therefore generally only recommend their own loans. The borrower usually does not find out how expensive or cheap these are compared to those of other banks. To find out, consumers need to speak to other banks themselves. This is too expensive for many. “According to Credit Bureau, on average, borrowers only compare 2.7 loan offers before taking out a loan. In relation to the offer, this is negligible. Without an extensive comparison, borrowers cannot make a well-informed loan decision. That explains why the majority of borrowers continue to pay too much for loans, ”says Alex Rubi.
Credit portals bring prospective creditors on par with banks
With the help of credit portals such as Good Lenders Credit, prospective creditors can get an overview of the offers of several banks with a single request. No credit portal currently provides a complete market overview. But: Even today, prospective creditors get a significantly more comprehensive overview of eligible loan offers than through a conversation with a single bank advisor. Credit portals thus create transparency that is generally not available in bank branches. Borrowers benefit from this: You see the conditions of different banks in comparison and can choose a cheap loan. In 2019, borrowers paid an average of 39 percent less than the national average for loans taken out via Good Lenders Credit. But even the cheapest loan is a serious obligation.”Consumers should only take out a loan if they can safely repay it,” says Alex Rubi.