You often need a large loan. The problem with it: The monthly installments are very high. You have to choose the repayment term very long. So you can push the rates to a bearable level. A loan with 180 months duration is therefore often sought. However, such a loan is not so easy to get. You have to know the right tricks for this.
Credit with 180 months term: These loans are commonly available
Above all, earmarked loans often have a term of 180 months. This applies, for example, to real estate loans. You can usually extend them for up to 30 years (360 months). Remediation and renovation loans are also granted with a 15-year term.
The same applies to vehicle financing. However, you have to trick those and choose the so-called balloon credit. In fact, a follow-up financing is already planned. After seven or eight years you can choose or return the car. If you opt for the new loan, you have a 180-month loan.
The advantage of earmarked loans is that you get them comparably easy. You acquire a concrete equivalent with the loan. This serves directly as collateral for the loan. Even with a lower credit rating, you can therefore get such a loan.
Credit with 180 months term without earmarking
Occasionally you will find a loan with 180 months term without earmarking. However, banks are reluctant to grant such loans. There’s a good chance that you wereted the money. They therefore do not earn any security to support the loan.
This has some unpleasant consequences: Interest rates on a 180-month loan without earmarking are very high. Banks thus secure their higher risk. Moreover, the constraints are often bad. The rules for installment breaks or special repayments are tough. The rejection rate of corresponding loan applications is high. In Germany, lending with a weak private credit score is virtually excluded.
Credit with 180 months term without earmarking: Strengthen your credit rating
When you read quotes for a 180-term loan, you will see an interest rate corridor. You see a relatively small number in large print – for example, 4.95 percent. But you should also read the fine print. There you will find another number – for example, 15.95 percent. With an excellent credit rating, the low number is your interest rate. However, if your credit repayment ability is weak, you have to live with the higher one.
It is therefore extremely important that you strengthen your credit rating. You will not be able to increase your revenue in the short term. But you can not take the loan alone, for example. Or you present a guarantor. You can actually add the credit of a second person to your own.
Alternatively, you can also offer collateral. Do you own real estate? Or maybe valuable machines? Maybe a high quality vehicle? These objects are suitable as collateral and strengthen your credit rating.
One last tip: Play in doubt with the terms
You should definitely look for a loan with a maturity of 180 months with a loan calculator. So you can play with the terms. For example, shorten those months by 12 or 24 months. Interest rates often fall significantly. The rate burden hardly changes in fact. However, you can repay the loan faster. And since the term is shorter, you can also get the loan easier.