Today's credit market is a collection of very different types of loans that can cover almost every need. Some of them have specific names, others are ordinary loans given a label for marketing reasons. One of these is the so-called wish loan. Behind it is usually a completely normal installment loan, offered either as a financing plan or as a cash loan. It is typically used for investments in everyday needs, such as household purchases. Depending on the form, a wish loan follows the usual standards in the credit industry; the term "wish loan" is primarily meant to encourage the consumer to accept the offer. A wish loan is almost always a plain consumer credit and is usually marketed and sold only for such purposes. As a consumer, it usually pays off to compare the desired loan. Especially for financing offers, a standard consumer loan is often somewhat cheaper and more effective than a corresponding financing offer. But a wish loan can, as the name suggests, fulfill wishes and thus quickly and affordably bridge short-term financing gaps. This gives the borrower the opportunity to make expensive purchases in one go on favorable terms.
The word "wish" expresses a longing for a desired state that can be achieved through effort, diligence, or other means. The prerequisite is the sufficient availability of those means and their sensible use to reach the desired state. In philosophy, acquiring the means to reach a goal more easily or quickly is seen as an acceptable method. A wish loan is therefore intended to enable the borrower to reach their goals more quickly and with less effort and within their financial means than they would normally manage. As a consumer credit, a wish loan is subject to the legal framework applicable to its purpose. Wish loans exist in almost all forms: as financing loans, installment loans, standard consumer loans, or as special and individual consumer loans. The consumer can decide to take out this loan in the open market entirely without advice. A wish loan is possible with distance selling contracts, door-to-door sales, or in retail. Advisory loans are also possible, but they usually include additional consultation and closing costs. Anyone who wants to conclude a wish loan in a distance selling transaction should pay close attention to the legal conditions such as the withdrawal period (Widerrufsfrist) and other regulations.
Types of wish loans
Wish loans come in a wide variety of forms. The word "wish" is mostly just used to attract the buyer or interested party to the offer. Consumer credits, financing loans, and installment loans are just a few of the possibilities. Wish financings are still the most common form and are especially popular with consumers. The term is found frequently on the internet, which has become one of the largest marketplaces for goods and services of all kinds. But not only the internet: retail has also adopted the concept of wish loans. Almost any goods or service can be acquired with the help of a consumer loan. Combinations with other loans, or combinations of services and goods, are also possible. The car industry, for example, advertises favorable loans for car purchases together with suitable accessories. Other larger purchases, such as for living spaces, can also be acquired without problems through full or partial financing plus a small gift.
Wish loans in distance selling
On the internet, wish loans are often offered in the form of financing loans. Here, the consumer is subject to the usual provisions of the Bürgerliches Gesetzbuch (German Civil Code), including the right of withdrawal period. Especially for higher-value orders, a wish loan is a good solution, since it can close a large financing gap affordably. As a consumer, you should pay attention to the reputation of the provider. Labels like "Trusted Shop" or a TÜV-Prüfung contribute to consumer safety and are published and regularly renewed by every reputable provider. On auction platforms, loan granting is legally not possible. Wish loans are usually offered as wish financings, but these are in fact ordinary installment financing loans. As a customer, you should pay particular attention to the respective partner bank of the retailer, because the retailer itself may not conclude financing contracts. Usually, large institutions offer such cooperation. However, this often incurs additional costs due to higher administrative fees; alternatively, you should consider whether a standard installment loan might be the cheaper option. As a benchmark for a sensible comparison, you can always use the interest rates of the retailer's offer and the bank's offer, as well as the additional costs. A comparison can pay off and save you real money quickly. Wish loans concluded over the internet also fall under the Fernabsatzgesetz (Distance Selling Act), since the usual consultation and counseling are omitted. Online wish loans are often accompanied by special discounts and can therefore become a real bargain for the consumer.
Comparison: wish loan vs. consumer loan
A wish loan, depending on the situation, is a good way to bridge short-term financing bottlenecks. For the borrower, it is of course important to have a good overview of their own financial situation and to obtain and check the corresponding offers. A wish loan is, as the name implies, a marketing label behind which ordinary consumer loans conceal themselves. Therefore, a wish loan is not always the cheapest form — a standard installment financing or an overdraft facility may already provide sufficient relief for the current financing gap. In practice, a wish loan tends to become interesting only from a higher loan amount, depending on income; in any case, the choice should be made according to the cheapest offer. With installment financing, one should also always watch for possible payment difficulties and other problems. Typically, marketers cooperate with banks that offer the corresponding insurances in their portfolio and sometimes even require them. These services include protection against unemployment, death, or accident. Although taking out one of these services usually incurs additional costs, they increase the chances of the loan application being accepted. In addition, the interest rate decreases due to the reduced risk of a complete loan default.