If you want to buy a car, you can either pay for it with your savings or you can finance the car. A bank offers valuable support. You usually need to be creditworthy to benefit from it. The bank has two options for checking your creditworthiness. So what’s the difference between a condition request and a loan request?
What are the differences between the condition request and the loan request?
A difference between the condition request and the credit request is derived from the definitions of the two options:
- When requesting a condition, the credit rating is queried by the credit institution in order to be able to determine the conditions for a possible loan. The relevant data is requested from an information center that works with the bank (this can be information from credit score , for example).
- In the case of a condition request, however, the creditworthiness of the borrower is not debited. The request does not affect your credit score score and is not passed on to third parties. The difference between the condition request and the credit request is therefore that a condition request is neutral and has no negative effects for you.
The data in the information file will remain stored for one year. Here too, data is collected to ensure your creditworthiness.
To talk about a loan, you must bring the following documents with you:
- identity card
- bank statements
- Evidence of income from secondary employment
When making a loan request, however, the data can be viewed by third parties over a period of ten days. Since other banks can more easily recognize that several inquiries have been made, the score for the information file deteriorates. This leads to a poor credit rating and reduces your chances of getting a loan. In contrast to the condition request, the loan request has a clear disadvantage for the borrower.
How can I make a loan request that does not affect creditworthiness?
It is not possible to make a credit request that does not affect the credit score entry. This is the main difference between a condition request and a loan request.
So that a credit request does not affect your credit rating, you should consider one step in advance:
If you ask for a loan from several banks, you may have a higher credit rating. Many banks have different criteria for rating a customer’s credit rating. Before visiting the banks, you can get information from credit score yourself and check it for possible errors.
When is a condition request and when does a credit request make sense?
The difference between the condition request and the credit request raises the question of when a condition request is more appropriate and when it makes sense to have a loan request made. In order to protect his own creditworthiness, it is more advantageous that the credit rating is not affected by the request. Since a credit request without an impact on the credit score score is impossible, it is always more sensible in this case to have a condition request. However, if the creditworthiness is assured because you have no credit score entries, a loan request can have a sensible side. After the request, the bank knows that you are a creditworthy customer.She will be happy to work with you and approve the loan if the necessary collateral is available and can be paid.
You should basically differentiate between condition requests and loan requests!
The bank has two options for checking a customer’s creditworthiness. The condition request is intended to determine which conditions can be granted to the borrower in order to obtain a loan. The loan request is more comprehensive. Here you have to present some documents to the bank. In addition to the identity card, this also includes account statements, a copy of the employment contract and payslips. The main difference between a condition request and a credit request is that your data is not saved when you request a condition. When a credit request is made, the data is also made available to third parties when it is saved. You should point out in the consultation that the credit advisor should make a condition request. This adversely affects your credit rating and, in the worst case, prevents you from not getting the much-needed credit.