Compare Loans – Compare Loans and Save
A credit comparison is made fast on the internet today
Anyone who decides on a loan should take enough time in advance to compare the individual offers. Even though the credit providers ultimately offer the same services, they are quite different in terms and conditions. Even today, at a time of low interest rates, overpriced loans can jeopardize the borrower’s existence. However, those who get informed in advance and also compare the different offers, will end up with a cheap credit and fulfill the dream he wants to realize with the financing.
- 1 credit comparison: The first way usually leads to the house bank
- 2 Free credit comparison – the internet makes it possible
- 2.1 The loan comparison in detail – which positions are significant?
- 2.2 The interest rate
- 2.3 The monthly rate
- 2.4 The total loan amount
- 3 Other aspects to be considered in the comparison
- 4 Offers from online banks should also be taken into account
- 4.1 The conclusion to the credit comparison
Credit comparison: The first route usually leads to the house bank
As a rule, the applicant turns first to his house bank. Finally, he knows his advisor there, may have opened his salary account years ago and sometimes even completed various insurance. That the first way leads to the house bank is by no means unnatural. But that does not mean that the house bank has the best deal for the customer. The house bank may have had the best conditions in terms of salary or credit card, but can also offer bad conditions – referring to the desired loan – offer. Just because the customer has had his bank account for years and is satisfied does not mean that the consultant can present very good terms. Nevertheless, take credit offerings, study them and include them in the comparison with other credit providers. Urge bank accountants to sign, one should be careful. Since a loan is a very important step, which is certainly responsible for the financial situation of the next few years, you should leave enough time.
Free credit comparison – the internet makes it possible
On the Internet there are numerous credit comparison portals (eg kredite-vergleich.de ). More than half are free; Chargeable credit comparison portals are also available, but should be avoided. The applicant only has to enter the desired loan amount and term and will immediately receive a list of credit providers offering loans on different terms. However, before taking a close look at the credit comparison, the applicant has to answer in advance the question of whether its financing is an installment loan (with or without its purpose) or a mortgage loan . Here, too, there are differences, which are noticeable above all in the amount of interest. Who wants a installment loan with purpose, should directly compare those financings. Anyone who does not want a purpose and wants the money at leisure, must expect a slightly higher interest.
The credit comparison in detail – which positions are important?
In order to understand the credit comparison at the end and also to know which positions are of importance, the applicant should deal with the essential factors. The most important items include the interest rate, the monthly installment and the total loan amount. The latter is the measure of all things and sometimes the deciding factor, whether the loan offer is signed or not.
The interest rate
Interest rates play a significant role. Today, the low interest rates. This means that the applicant should certainly favor loans that have a low interest rate. In this case, the applicant must distinguish whether he wants a variable or fixed interest rate. The advantage of the variable interest rate is obvious: the interest rates are based on the European interest rate; if it rises, the interest rates rise too – the monthly rate increases. However, if the interest rate is adjusted downwards, the interest rate automatically decreases, making the monthly rate cheaper. For fixed rates, the monthly rate remains the same regardless of whether the European interest rate skyrockets or falls to the basement. The borrower already knows what his last monthly loan installment will be before his first repayment.
The monthly rate
Of course, the question of one’s own financial situation also plays an important role in the rates. Which monthly rate can be paid easily, even if several months follow unemployment or unexpected payments that can not be postponed? Borrowers who calculate very tightly often have no room for “special payments”; Here, the purchase of a new washing machine can be a problem when the monthly repayment is so high that just 300 euros a month for daily life remain.
The total loan amount
That position is the key factor in any loan comparison. The total loan amount is the amount that must ultimately be paid to the loan provider. This amount consists of the loan amount and the interest and also the other costs – such as processing fees or account maintenance fees. Here, the applicant recognizes whether it is a cheap or more expensive loan. It is precisely this amount that should ultimately be the decisive factor as to whether or not the applicant chooses the loan.
Tip: Anyone who has found a loan and makes an application must – if he receives the contract to be signed – pay attention to whether the conditions have changed. Many banks are also based on the creditworthiness of the customer, so that a good credit rating for improved conditions, but a bad credit rating can sometimes worsen the conditions!
Other aspects to be considered in the comparison
Of course, other benefits must also be taken into account – such as special payments. Special payments offer the possibility that the loan can be repaid early. Many banks offer such facilities, while others refuse to make any special repayments. It should be noted that special repayments on variable interest rates are almost always possible; With fixed interest rates, there is the possibility of special payment, but the special repayment brings no profit, since the borrower must pay the interest still due. As a rule, this is not required for variable interest rates.
Offers from online banks should also be taken into account
In the credit comparison, the applicant will also find that not only traditional banks with branches are used, but also so-called direct or online banks. Especially if the applicant is looking for a small loan , an online bank can be the best choice. Online banks are known for their low interest rates or often forego other fees that make the loan expensive in the end. If you have no problem submitting your application online or communicating with your bank advisor by e-mail or telephone, you can also take out a loan through an online or direct bank.
The conclusion to the credit comparison
Even though there are numerous reports in various specialist magazines that regard the credit comparison as particularly important, many applicants still refrain from comparing the different offers. However, those who deal with the matter and conduct a credit comparison can sometimes save amounts of money in the range of three, if not four, a year.