The cost of credit depends not least on the occupational status of the applicant. If you walk into a bank as a low-income worker with an uncertain future, you're often turned down. If the bank then still agrees to a loan, they often charge higher interest because the risk seems higher to them. The situation is different for a teacher, who is usually a civil servant and has a secure income. The bank has a lower risk of default and this affects the level of interest rates. The banks do not advertise this inequality, of course, but every teacher should be aware of this fact. A teacher's professional status puts him in a very good negotiating position, because the bank wants him as a customer and is often open to negotiation on loan costs.
Save costs by comparing loans
When taking out a loan, many teachers simply walk into the nearest bank and get a loan without any problems. The cost of a loan can be significantly lower if he takes the trouble to compare the available offers. Especially in the case of long-term loans, half a percentage point makes a difference of several thousand euros. There are many portals on the Internet where providers are compared. Basically, banks and credit institutions that offer their services on the Internet are often significantly cheaper. By a comparison portal the borrower has a fast overview and finds within short time the most favorable offer. In addition to the amount of interest, the service is also important. How quickly can the bank be reached, are the hotline staff competent, is the hotline staffed only during business hours or also at night. These questions are not always answered by a comparison portal. More detailed information about a bank is provided by forums. Here customers share their experiences with the bank. Not every statement should be put on the gold scale, of course, because sometimes the competition or employees of the bank also post here. These statements are then not very objective. Only when the prospective customer has read different opinions does a differentiated picture of the credit institution emerge. However, it is better in any case to involve a reputable credit mediator. He can approach banks specifically about the individual conditions and thus arrange perfectly tailored offers.
Make a loan flexible
When designing a loan, it is not only the amount of interest that is important, but also the term of the loan. Lower interest rates and at the same time an extended term results in a very low monthly charge for the teacher. In the case of a borrower with an uncertain income, many banks insist on rapid repayment. With a secure civil servant income, even very long repayments are possible. Especially with higher loans, such as those taken out for real estate, the fixed interest rate is very important. Some banks give teachers fixed interest rates for up to 10 or even 20 years. With very low interest rates the instructor can secure the good conditions for a longer period of time.
Every teacher should be aware of the fact that he or she is welcome at any bank and act with an appropriate self-confidence. If the bank does not meet him with the conditions, then the way to the next institution is not far. On the Internet it's just a mouse click.