The successful credit interview – well prepared, structured and fact-based
Every person at least once in life faces the challenge of applying for a loan. In your personal life, for example, it's financing a home; professionally, it may be starting a business or freelancing. How for you to have a successful loan interview at the bank is the subject of this post.
FAQ about the credit interview
How does a credit interview work?
Every loan discussion is individual. However, basic elements can always be recognized. In each case, you yourself have the opportunity to explain what you plan to use the loan for and how you plan to pay it back. It is best to support your statements with appropriate documentation and provide as much information about your situation as possible. During a mutual exchange, the bank advisor can then ask questions and start a conversation with you.
What to take with you to the credit interview?
You will need various documents such as your identity card, as well as wage and salary statements. Depending on the type of loan, you may also need documents regarding pension payments, insurance policies, your business plan or real estate-related documents. You should also have a piece of paper and pen or similar with you to take notes.
What questions to ask at the loan interview?
The questions you will be asked in the credit interview will of course vary from interview to interview and will also vary depending on the credit. Basically, however, you must be prepared for questions about what you need the money for. In addition, the bank advisor will want to know how you expect to repay the loan and what collateral you have to offer.
The credit discussion for real estate financing
The detailed conversation with the bank always comes up when larger sums are involved. Getting a consumer loan for a car, furniture, travel or home renovation is easy. Proof of steady, permanent employment with a monthly or annual pay statement is sufficient for this purpose. The credit interview preparation for real estate financing is different. A careful compilation of the necessary documents is helpful here.
This is important
In the case of buying an apartment or building a house, the most important documents are the deed of sale from the notary and an expert's report on the value of the property. Then it's about your personal reputation – especially the financial one. If you have been working for a reputable employer for a long time and for an unlimited period of time, you have good cards for the credit interview. It doesn't matter whether the company is a global player or enjoys a good reputation in the regional catchment area.
It is also helpful for the loan discussion not to be burdened by any further installment payments. To the important credit tips and tricks belongs in this case to use the perhaps early redemption possibility for the car installment payment for example. In preparation for the loan meeting, it is important that you have an idea of the monthly burden and the term of the loan. For a real estate up to 25 years are not at all unusual. And: The credit interview will not be successful without equity capital.
The credit interview for starting a business
This is important
The credit talk with the bank is quite different if you want to start a business. Here you have to convince the bank's loan officer of the quality of your idea – especially of its marketability. Helpful for a credit discussion then the appraisal of a scientist, who acquired itself as professor at university or professional school a good reputation on the field, which you want to enter.
Perhaps you are fresh out of university and are setting up your own company with the help of a transfer center. Such facilities support the transition of ideas from the universities to the market. Then, pointing out such support is among the important credit tips and tricks. Perhaps you have the commitments of "business angels": These are connoisseurs of "your" industry, which help not primarily with capital, but with insider knowledge and contacts to business partners as well as possible customers. Establishing such networks of relationships is part of your credit talk preparation.
The business plan for the credit discussion
Tip
If you are starting up a business or are self-employed, the business plan is indispensable for the loan discussion with the bank. It lists the most important building blocks of your idea and funding. No matter what credit tips and tricks you have prepared: Without a business plan, the loan conversation will be unsuccessful. First of all, it contains the costs for computers, machines, office, production or storage space and vehicles.
It continues with the expenses for the staff: Start alone or plan from the first day with a permanent staff or freelance supporters? The latter may work on a fee or commission basis. For the credit discussion you also prove with the business plan, how you want to earn money with which product or which service in which way.
Attention!
You have to prove to a non-expert in the loan discussion when you will break even with your idea. Keep in mind: Your interlocutor at the bank is neither a computer expert, nor a social media specialist, nor a minimal artist. But he must understand the idea with which you want to make money: Otherwise, the credit discussion will be unsuccessful.
Credit talk with openness and focus
The successful credit discussion with the bank does not only rest on a factual basis. It also has to do with emotional components such as transparent communication, sympathy for the bank advisor and a leap of faith. Therefore, one of the credit tips and tricks is to create a proper and emotionally positive atmosphere. Present your point of view confidently, think about what questions the bank consultant might ask you when preparing for the loan conversation.
Tip
If you anticipate the possible questions to you already completely or at least partially when presenting your idea, you are in the active presentation role. You shape the conversation – not the bank representative. On your speaking note, leave space for notes after each point you want to present. There you write down the remarks of the bank adviser in the credit discussion. It is important to ask about the "banking jargon" of the money expert – and then to listen patiently.
This is another way of contributing to a good atmosphere for the discussion. If there are difficult points in the loan discussion, also take the liberty of saying, "I'll have to think about that in peace and give you feedback by tomorrow evening (or by the weekend)". This date promise however you must keep then also. As a general rule, be honest in credit talk.
Attention!
Give openly information about your financial possibilities or about a perhaps earlier business mishap. It is better for your trustworthiness if the bank learns it from you and not from other sources or through your own research.
The credit talk between occurrence and scheduling
To the credit discussion preparation counts to plan sufficient time for it. This commitment is at a time in your schedule when your head and soul are not blocked by other issues. Of course, you show up on time for the loan meeting with the bank.
If you have a slightly longer journey, plan a time reserve with the car or take a train or bus connection sooner. If you are there early, take a short walk and go through your notes in your mind. Among the important credit tips and tricks, you should be respectable in dress and appearance.
This is important
In the credit discussion you use a cultivated language, talk to the bank representative politely and in compliance with the usual manners. This includes saying hello and goodbye, please and thank you, and letting the other person finish. The bank advisor will also let you have your say: He wants to know what risk he is taking with the money that his financial institution is making available to you.
Clothing selection: important component of credit interview preparation
Last but not least, tongue-in-cheek This: If you want a loan meeting to fail, show up to the appointment in a pair of ripped jeans, a worn-out T-shirt and well-worn sneakers. Now back to seriousness: dress smartly for the loan meeting with the bank. It doesn't have to be a suit and tie if you are not used to it in your life.
Then you do not feel comfortable and seem unsovereign. Clean and ironed jeans with a sports shirt and casual jacket also look respectable. And you feel good about it and look convincing in the loan interview. If you follow all these credit tips and tricks, you will lay a good foundation in case your credit interview is unsuccessful. Then the bank consultant is available to you gladly, in order to bring with changed conditions your project nevertheless still to success.