The figures of the private credit give the Germans a good testimonial when it comes to the repayment of loans.
In addition to the reliable loan repayment, the borrowed loan amounts rise and the terms of the loans are getting longer and longer.
Credit repayment usually runs smoothly
The current credit compass of the credit agency private credit provides pleasing information about the payment behavior of the Germans: 97.8 percent of the loans were repaid in 2016 without any problems. This is the highest value in ten years and represents an increase of 0.2 percent over the previous year. Even young borrowers prove to be very reliable in the loan repayment: Among the 18 to 19-year-olds, the repayment rate of 98.1 percent is even higher than the national average. Given the good payment behavior private credit has saved over 90.7 percent of German consumers only positive features.
Higher credit sums and longer terms
The sums borrowed by the Germans have increased in recent years: in 2016, 36.6 percent of all borrowers chose a loan amount of 10,000 euros or more. This share was 34.5 percent in 2015 and 31.2 percent in 2014. The loan amounts also increase the maturity of loans taken: the average maturity was 48.6 months last year, an increase of one month over the previous year and a new high of ten years.
Credit comparisons are becoming more frequent
The number of Germans who obtain information about the terms and conditions of various banks before borrowing increases. In 2016, the private credit recorded 22.9 million condition requests. Compared with 2015, this represents an increase of 17 percent. With such a request for a condition the banks inform themselves at the private credit about the creditworthiness of a potential borrower. The result affects the conditions at which the applicant is offered a loan. Unlike concrete loan requests, condition requests are only stored for a short time at the credit agency and have no effect on the private credit score of the consumer. However, the number of loans raised in 2015 and 2016 was 7.7 million. So the Germans like to get several offers in advance, before they finally decide on a bank.