For the Germans take on the most loans

Around seven million loans are taken up by Germans every year. Behind every contract is a story of its own – but a few reasons for the credit decision crop up again and again. We reveal what German consumers are most likely to do with their loans.

Credit reason number 1: your own property

Your own house in the countryside or a condominium in the city? No matter what the personal dream home looks like: The own four walls are high on the wish list of the Germans. Given historically low interest rates states: If not now, then when? Housing prices are still moderate in many places, mortgage loans and construction loans are very cheap. No wonder that every second loan in Germany is used to buy a property.

Credit Reason # 2: Car Buying

Also 2nd place in the credit ranking is a true classic. For decades, the car was considered “the Germans favorite child”. And even though in times of car sharing & Co. the enthusiasm for cars may have eased a bit: a fancy car in front of the house or in the garage is still very important for many people. And because such a wheeled pedestal costs a lot of money, car loans are in demand as ever. Again, the low effective interest paid off: Buyers just get more car for their money.

Credit Reason # 3: Furniture, Technology & Co.

Your own home should be a place to feel good and relax. Here we spend many hours a day, and that’s why the facility may also cost something: 15 to 20 percent of loans in Germany are spent at home for a better quality of life. The range of purchases ranges from new furniture to home appliances to consumer electronics.

Credit Reason Number 4: Rescheduling and Account Settlement

Investments or acquisitions are not always the focus when borrowing. Sometimes it is simply a question of reducing the existing monthly burden and increasing the financial flexibility. Both can afford cheap loans if they are used as a replacement for expensive old loans or the often even more expensive credit line. The principle is simple: who still has old loans with too high interest rates or who is with his account for a long time in the minus, can get a new, cheaper financing. With the fresh money, the old credit is replaced or the account balanced. This brings immediate relief on interest rates and ensures that more money is left at the end of the month.

Credit Reason # 5: Travel

“I do not invest in things, but in experiences and in a good time with my family.” More and more people are thinking of getting out of the race for ever-new consumer goods and instead enjoying their valuable lives more intensively. This is particularly successful when traveling, where you can gain new impressions, explore “undiscovered” areas and maybe even find friends for life. Especially for longer trips or more distant destinations, the travel budget, however, must be filled quite well. If necessary, you can help with a holiday loan, and more and more travelers actually use this option. This brings the credit for travel of all kinds 5th place in the credit rating.