Bank considered loan for kitchen.

The kitchen has returned to its old position. What does it mean? Years ago, the kitchen was the focus of an apartment. All family members usually gathered around a large table after work and reviewed the events of the day. But a kitchen is also getting old and a new one is needed. The electrical devices no longer work properly, one of the cupboards is defective. The current budget does not give money for a new kitchen. A kitchen loan is being considered.

The credit for a kitchen – the location

The credit for a kitchen - the location

But not only the old kitchen should be replaced, even if someone moves into their own home, of course there is no kitchen. Then the credit for a kitchen can be taken out with the real estate loan. Whoever moves to a new apartment can often not take the old kitchen with them. Here too, a loan is often necessary for a kitchen.

Kitchens have different prices which can be up to 20,000 USD. Who needs even a kitchenette has to expect around 3,000 USD and that is still in the lower price segment. In order to be able to finance the kitchen, an installment loan is available that is not tied to a specific purpose. This type of loan is available from 1,000 USD. If you only have to replace a cupboard or a new electrical device, a small loan should be enough.

Before looking for a lender, an income / expenditure plan should first be drawn up. The income and expenditure should be recorded meticulously to determine whether a loan installment can be paid at all. If all income and expenses are recorded, there must be a plus in the best case scenario, which can be used for the credit rate.

However, experts advise after deducting all fixed costs and also the maintenance costs only 1/3 of the plus amount as a rate. This leaves at least a small financial buffer that can be used for urgent money needs.

The borrower should not overreact by setting a high loan rate for a kitchen. If the kitchen costs a few thousand USD, then the loan term must also be planned, which ultimately has an impact on the rate and the interest rate. If you tighten your credit line too tightly, you could be in default. For this reason, the so-called budget is urgently needed.

How to finance

How to finance

When buying a new kitchen, the consumer has two financing options. On the one hand there is the furniture dealer and on the other hand the loan from the bank. A loan contract is then made with both partners and the loan is paid off in monthly installments. In order to be able to pay for the kitchen in installments, many furniture stores require a down payment of around 30% of the loan amount. Despite the down payment, it can be cheap financing. It is not uncommon for these dealers to offer 0% financing.

The loan for a kitchen can also be taken out at a bank. This can be your own house bank or another local bank. The online banks are also available and have even better conditions than the branch banks. The advantage of taking out the credit for a kitchen there is that the buyer can act as a cash payer at the furniture store and can get huge discounts and discounts.

If the customer then searches for a dedicated loan, he can save again because this loan for a kitchen is particularly cheap. However, the loan can then only be used to buy the kitchen. A modernization loan may also be available, although it should be borne in mind that this loan is usually only approved for heating and other modernization purposes.

The cusromers need to know 

The cusromers need to know 

Since the purchase of a kitchen is usually preceded by planning, the customer can take the time to find an acceptable loan. Customers should also know that installing a new kitchen in their own home can increase the value of their property. In order to really get a cheap loan for a kitchen, a credit comparison should be carried out in advance. This is the only way the customer can easily find the best offers.

Likewise, the value of the kitchen should be set roughly. This means that the loan amount can be financed exactly and that the customer takes out an excessively high loan, which must also be paid. The customer can save even more if he looks at the offers of the furniture stores for a kitchen. The term of the loan could possibly be chosen long, because a kitchen is an acquisition for long years.

The advantage of the long loan term is that the rates are not set as high. However, the loan will then become somewhat more expensive and the interest rate will then increase. The customer should also know that he should only buy an adapted kitchen if he stays in his own home and lives there or if he wants a rental apartment in which he also wants to live for a long time. If he then buys a kitchen block, he can save again. Because the custom-made kitchens are extremely expensive.

Of course, the customer’s credit rating must be right. It is the same with a furniture dealer as with a bank. A sufficiently high income, a clean Credit Bureau and permanent employment are required. If these framework conditions are met, the loan commitment is made.

The Credit Bureau does not matter

The Credit Bureau does not matter

For the customer who is struggling with a bad credit rating, which has arisen from negative entries in the Credit Bureau, there is also an option to take out a loan for a kitchen. This is where the Credit Bureaufree loans from abroad come in handy. They are advertised by credit intermediaries who see themselves as intermediaries between the bank and the customer. However, it should not be forgotten that a credit intermediary does not work for nothing. The commission is due when a loan is approved.

Customers also have to meet requirements at the foreign bank and primarily at Litebank. For example, the income must be above the garnishment exemption limit and a permanent position must exist. The Credit Bureau does not matter and the credit is not entered.

However, the loan amounts are capped, which means that usually only two types of credit are offered. One time 3,500 USD and a maximum of 5,000 USD depending on the credit rating. Both loans have a term of 40 months. The installments for the 3,500 USD loan amount to 105.00 USD, the 5,000 USD loan has a rate of 150.00 USD. The loans should be paid on time; if there are any payment problems, the bank will pledge them immediately. The customer must sign a corresponding certificate when applying for a loan.

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