The 10 most important reasons to take out a credit

Cars are readily bought on credit

Many people in germany have already benefited from a loan. The reasons for taking out such a loan vary. A study by SMAVA recently showed how people in germany use credit and, above all, for what type of expenditure they use it. Be it a personal loan, microloan, mortgage loan or car loan. Here are the 10 most important ones:

1. Loan for house, garden, home improvement

Mortgage loans are still the most important form of credit in germany. The vast majority of real estate transactions nowadays are carried out with the help of a loan.

But it's not just the purchase of a property that is usually financed by a loan today: time and again, you have to repair or improve one or the other little thing in your own home. Whether it's a fresh paint job, repair work on the roof, or the addition of a garage. Also in the garden expenses arise gladly once, which are not to be stemmed the current financial reserves.

More and more people also want to own a swimming pool, for example, so that they can enjoy the warm summer months at home even better. Or you want to invest in a gazebo, or a winter garden? Even then, they are not alone, and have had many predecessors who have asked for loans for very similar reasons. All such expenditures can be particularly well managed with the help of a personal loan. The investment takes place once, and one can enjoy their advantages already during the period of the installment repayments.

One may well ask oneself how the owner-occupied homes and the heard in germany would look like without the possibility of private loans..

2. Personal loan for debt restructuring

More and more people get payment problems nowadays – be it due to a sudden unemployment, be it due to an accident where the insurance does not cover, or even an over-indebtedness due to personal health problems. All these things can lead to over-indebtedness, which puts quite a few people in a very difficult position. And what makes the repayment of these debts even more difficult are the high interest rates and reminder fees that often accompany such a situation. For many people, this makes it very difficult to wriggle out of such spirals of debt.

And yet there is at least one solution approach that has already helped many people: debt restructuring. By rescheduling with the help of a personal loan, interest payments can be significantly reduced in most cases. Because the interest that accrues on a personal loan is usually significantly lower than that which must be paid when overdrawing the current account.

3. Car & motorcycle – earmarked credit

Who would like to afford a new vehicle, but does not necessarily have a large sum on the high edge, which sets on a car loan. Such earmarked loans are usually offered at particularly favorable conditions, which makes this form of financing a good deal. In germany, this reason for taking out a loan is the third most important form of credit. One must consider with the auto-credit so a few things.

Cars - also in demand on credit

4. Family & education

Fourth place in the list of the most important reasons for taking out a loan goes, somewhat surprisingly, to the area of family and education. In germany, this category includes special expenses incurred by the family: for example, if a family member is planning a big trip, or if large gifts are made, such as a new fitted kitchen or other furniture needed when moving house.

Another major issue where loans are increasingly being used is to finance children's education. Then, for example, if a child wants to spend a semester abroad, or simply if you want to finance an expensive study, personal loans are not infrequently a good solution. But also other family matters such as weddings often require a lot of capital, which can only be raised with a loan.

5. Liquidity in the form of a company loan

Particularly in the case of the self-employed and young entrepreneurs, loans are often granted for liquidity reasons. People who want to build up a business need sufficient capital to be able to position themselves optimally on the market. Corporate loans are often taken out for this purpose, but it is not uncommon for personal loans to be used as well.

Spent mostly on purchases such as computers and graphic expenses such as a good company logo. But also in software one must invest today frequently, in order to have a chance on the market.

6. Education & training

Already mentioned were loans for the family, for example, to enable the children a good education. But many private credits are locked also therefore, in order to invest the borrower even a training and/or retraining or further training. Courses and apprenticeships, which are exceedingly expensive, are all too numerous.

Further borrowing on credit is quite common in DE

7. Health & lifestyle

Last but not least, lifestyle is something that is very important to many people, and sometimes temporarily beyond one's means. A good example of this is, for example, the purchase of jewelry or expensive clothing financed with the help of a microloan.

But also expensive consumer goods such as a smartphone or a video game console are often financed with the help of small loans. In germany, this is the seventh most popular reason for taking out a loan.

8. Travel / vacation

Last but not least, traveling is one of the most popular hobbies of the germans. However, the dream goal cannot always be achieved with the help of one's own purse. For this reason, quite a few germans take out a personal loan to finance an expensive trip around the world or, for example, the dream of taking a luxury cruise once in a lifetime. Loans are a good way of being able to afford this, provided you accept that you will have to make the installment payments as a result.

9. Celebrations & special occasions

When a round birthday is coming up, or even a wedding, then the bank accounts like to be strained excessively. All the worse if you are a little short of cash on the given occasion. If one would like to celebrate nevertheless a rushing celebration, one has the possibility of financing the event with the help of a private credit or a microcredit.

Some special celebrations such as weddings, christenings or round birthdays are celebrated only once in a lifetime. And you shouldn't cut any corners, and spare neither effort nor expense – at least that's what many germans think when they take out a loan for these reasons.

10. Consumer electronics & technology

Be it video game consoles, or a new TV, a new laptop or an expensive smartphone that one absolutely wants to have. Germans also like to buy on credit. This reason for going into temporary debt still made it to number 10 on this list.


As you can see, people in germany find all kinds of good reasons to let a lender help them out financially. From a home, to a car, to a trip around the world or an education, there's hardly anything that doesn't warrant a loan.

It follows: who decides for a credit, which does not need to accept nowadays however the first-best offer of the house bank. For a long time now, there have been a large number of reputable providers who shine with particularly good conditions. A comparison between dozens of providers, with all conditions at a glance, you can now get for free with loanstar loan comparison.