Credit for funeral – Find cheapest financing
December 10, 2019
A death is not only associated with grief, but also with a high financial burden. As the legacy is becoming less and less sufficient to cover funeral expenses, relatives often have to take out a loan for the funeral. The undertaker does not require prepayment or payment of the costs at the grave, but sends an invoice at a reasonable distance from the funeral service.
Since there is enough time for borrowing, nobody in an emotional state of emergency has to use the first loan offered without a price comparison. Only the funeral coffee is usually paid immediately afterwards in the restaurant. The overdraft facility can be used for this rather small amount.
There is also the option of commissioning the funeral company to organize the funeral coffee so that it is paid together with the actual funeral bill. This option is usually also available when the grave is acquired, even if the direct purchase transaction between the surviving dependents and the cemetery administration of the municipality or the religious community prevails.
Credit from the funeral home
Whether the undertaker grants a loan for the funeral depends on the individual case. Upon request, relatives generally receive a deferral of payment until the payment date of a risk life insurance or a life insurance policy without further ado. Individual funeral directors also offer to arrange payment in installments, which are mostly larger companies. This procedure is particularly convenient in the emotional exceptional situation of a bereavement, since the undertaker is the only contact person to take care of everything.
This also applies in the event that a funeral home does not make any direct installment agreements, but arranges a bank loan at the request of the bereaved. The form of borrowing for funeral expenses, which is easier in the face of mourning, is usually associated with a high interest rate or, in the case of low-interest financing, higher service prices than competitors and is therefore usually not the cheapest form of financing a funeral.
However, the easier credit check when borrowing through the undertaker is advantageous. If he offers the partial payment himself, he usually waives the submission of proof of salary, similar to traders. When borrowing through a partner bank, this reduces their usual creditworthiness requirements, so that most relatives receive a loan for the funeral.
Borrowing for the funeral through a bank and from individuals
If the loan is not taken through the undertaker, it is of no interest to the bank whether the applicant is using the desired loan for a funeral or for other purposes. It generally only grants loans if the potential customer meets the creditworthiness requirements. These differ depending on the bank, so individual banks generally exclude self-employed and freelancers or employees of temporary employment agencies as borrowers.
Borrowing for the funeral over the Internet is cheaper than submitting the loan application in a bank branch. An instant loan not only offers the advantage of a quick cash payment, but is inevitably associated with a reduction in the usual credit check. Depending on the amount requested, some financial institutions even refrain from submitting proof of income in favor of quick application processing. Individuals pay out a loan for the funeral, even if they have a poor credit rating, through brokerage platforms, since they are primarily based on the purpose and a funeral loan is one of the most urgently needed loans.