Once in a lifetime, everyone will be able to lose a loved one and be buried. A funeral is associated with many costs, because not only the ceremony, but also the undertaker himself, the coffin and the cemetery fees then have to be paid. In addition there are grave decorations and grave helpers. All this costs many thousands of dollars, so that many have no choice but to take out a loan for a funeral.
No funeral reserves
Many take out death insurance or life insurance in order not to burden the family too much later with the costs of a funeral. Such insurance also costs money and not everyone can afford it. Then the family stays on the costs and they cannot always cover the costs. Since the deceased should be buried with dignity and according to his wishes, many quickly take a loan for a funeral. However, a few things should be considered before the contract is signed.
Pay close attention to conditions
If you have to take out a loan for a funeral, you should take a close look at the conditions. Funeral directors know that a funeral costs a lot and works with banks that grant loans. The loan for a funeral can then be taken up in the amount of the costs and will then be paid off in several months or even years, depending on the condition. Even though it is very convenient to apply to the undertaker, it does not mean that it is a cheap offer.
Many providers play with people’s grief and give high interest rates. So your own bank should be asked for a loan application. A quote can be obtained from the undertaker so that the bank can see the amount of the loan.
Prerequisites that are essential
To get a loan for a funeral of several thousand dollars, you need to have good credit. German banks always check this through Credit Bureau. In addition, a permanent job must be available and the bank statements must be presented. He after the bank check is given a loan for a funeral.
The loan amount disbursed should best be transferred to the funeral home immediately. The monthly payments are automatically debited from the account. Depending on the credit rating, the rates are low or high. The better the creditworthiness, the more favorable conditions can be expected.