Police Officer Credit Interest Rate.

Compare classic models

For years, the decision to make a police officer loan was clear from the start. The bank or a specialized online provider applied for a B-tariff loan. Long-term loans with low financing costs came from insurance companies. A wealth-building life insurance secured the loan. Surplus profit shares put the somewhat higher interest rates into perspective.

Officials who want to finance particularly cheaply today should not only get information about classic loan offers. Insurance companies, for example, are still happy to offer policy loans. The only problem is looking at the real cost of the bottom line. Due to the lack of serious interest-bearing investment opportunities, the companies do not achieve any profit surplus or only barely.

Even the guaranteed interest rate of old contracts had to be overridden by lawmakers. Life insurers could no longer even afford the minimally promised interest profit. Overall, the financial product is almost uninteresting, especially for people with good credit ratings, which can be assumed for police officers’ loans. Long term or not, the bottom line is that civil servants today usually save more when they compare generally accessible loans.

Credit comparison – good credit always pays off

The starting point of a loan comparison should be the special offers for civil servants, so that the difference becomes clear. A specialist provider that already carries its specialization in its name is the Agree Bank (AB). The bank calls your loan offer the FlexoPlus installment loan. With 10,000 USD loan amount, 60 months term, we take a particularly typical comparison of the amount and term. They have even preset many loan comparisons.

The installment loan costs a total of 1,542.20 USD in financing costs. This corresponds to an effective annual interest rate of 5.95 percent. In a good credit comparison of generally accessible loan offers, we enter the same requirements. We are looking for a loan of 10,000 USD with a term of 60 months. On top of that, we hide the civil servant bonus due to its excellent credit rating. The IKD would be willing to grant the loan at an interest rate of 3.89 percent effective regardless of creditworthiness. (As of April 2016).

The loan costs a total of 1,001.87 financing costs via the for every open provider, at the interest rate independent of creditworthiness for “everyone”. So 540.33 USD less than at the specialist provider. If we take it seriously now and play out our good credit rating, it will be even cheaper. Based on the possible credit-related best interest rate, barclaycard offers the loan at 2.25 percent effective interest. In this case, the total financing cost of the installment loan amounts to USD 576.38. In comparison to the specialist provider, an interest saving of 965.82 USD.

Credit comparison result in the example:

A good credit rating for police officers pays off particularly well if all credit providers are included in the comparison. Saving between 500 USD and 1,000 interest with three entries is guaranteed to be worthwhile for every grade.

Bank loan – what is important for low interest rates?

Credit for police officers can be offered so cheaply by online credit banks because the good creditworthiness of the employer has an impact. The father of the state always pays his officials salaries on time. Compared to many professions, the pay is actually quite good. Depending on career, rank and seniority, the income clearly exceeds comparable occupations. A police officer cannot become unemployed as a civil servant either.

The state, as an employer, adequately cushions the risk that civil servants are exposed to in their daily work. Disabled officials, again compared to other workers, do not have to gnaw at hunger. The pension should be a bit higher. But compared to 300 USD – 600 USD for people with disabilities, it is almost sumptuous.

It is therefore clear for the credit assessment that a police officer practically always remains solvent for life. He cannot hide behind seizure limits. In the overall picture of the credit assessment, income security, income levels and sickness coverage provide a very good credit rating. An official’s creditworthiness can only be weakened by his own financial mistakes.

Credit for police officers with limited credit ratings

It should not be kept secret that a loan for police officers can also be problematic to grant. The case occurs when the policeman has lost his good credit rating. There are many reasons for this, for example divorce or a phase of debauchery. Police officers are only people in uniform.

With a significantly reduced credit rating, regular banks reject any loan request. Citizens in uniform have the option of submitting a loan application to private donors. Smava, for example, provides the serious and reliable environment for lending from private to private for civil servants in the official sense.

The good professional reputation of the “friend and helper” creates trust among investors. A loan for police officers from private donors is often still granted even after banks have long since left the sails.