Which loan provider suits me?

The low-interest phase is used by many people to finally realize their dream – thanks to a financing. Whether it is the purchase of a property, the construction of a house, the dream vacation or even the new car – such projects usually exceed the savings. This is where possible loan offers come into play.

But even if there are currently cheap credit providers , a comparison of the different loan offers should be carried out in advance. This is the only way to find out which loan actually suits you. There are numerous loan portals available on the Internet that provide a free overview of what conditions are currently offered. But is the comparison really the solution? Yes – if you pay attention to certain positions.

Credit offers: The installment loan without purpose

The installment loan without purpose is interesting if you want to realize several projects. A new facility for the living room, a holiday, repair costs for the car – if you contact the bank and apply for an installment loan without use, you can freely dispose of the borrowed amount. However, such financings are a bit more expensive than those having a purpose. Finally, there are special financing, such as the car loan, the restructuring loan or modernization loan, which – due to the intended purpose – have more favorable terms. In the search for an installment loan without a purpose, it is also advisable to contact various online banks. However, the loan offer also depends on the occupational group: a civil servant loan or student loan usually has quite different loan conditions than a loan for a housewife, for example.

cheap credit offers on the Internet

As a rule, online loans are cheaper than those provided by banks with a branch network. It should be noted, however, that maximum funding is often limited; Online loans often have a maximum loan amount of 50,000 euros. Another aspect that you have to consider: application, processing and further procedures are online – this means that, as with a bank with branch network, there is no permanent supervisor as contact person. At online banks, those employees answer your questions that are currently available. Support is predominantly via e-mail or telephone. Private advice for credit offers, there is usually, due to the lack of branch network, not.

The installment loan with purpose

If you decide on an installment loan with purpose, of course, a comparison is required, so you can be sure in the end, to have chosen the best deal. Not only the interest rate counts for the credit comparison, but also any fees that may be incurred. A good overview of how expensive the loan actually gets can be found in the heading “Total Expenditure”. Here’s an overview of how expensive the loan actually gets. Online banks also offer installment loans with intended use. If you opt for a car loan, you must also invest the money provided in a car.

It does not matter if it is a new or used car. If you want a reorganization loan, the money is for the renovation of your own four walls to use. Many institutes can show up in advance cost estimates or require – after a certain time – confirmations that the amount made available was actually used for the specified purpose. If the confirmation can not be provided or if the sum has been made for other purchases, there is a possibility that the bank will change the loan to a non-payment installment loan. As a result, you lose the attractive terms on the loan offers.

Important for loan offers: What about your credit rating?

Of course, loan amount, term and credit play an essential role. Above all, the credit rating – ie the creditworthiness – can provide for changes in the conditions. If the bank has a good credit rating, better terms can be offered; Bad creditworthiness, for example because of the occasional entry in the credit score, can not only worsen the conditions, but also makes it possible for the application to be rejected. However, there are banks that offer loans without a credit score query. Here, caution is advised, because such banks often demand horrendous fees, so that in the comparison definitely on the total burden must be respected.

Whether and which offer is accepted by the credit provider always depends on your personal ideas. If you have a good credit rating, there are numerous loan offers available; In the end, you are spoiled for choice and can compare several offers. Whether installment loan with or without purpose, loan or real estate financing – in the end, it does not matter in fact, as you enjoy complete freedom of choice. However, if your credit rating is bad, there are fewer credit offers, so often deciding which offer to accept depends on the circumstances of which loan provider you are funding at all.

Low-interest loan offers: ask the question about the interest rate

Depending on the financing, the loan provider will offer a fixed or variable interest rate, which usually results in low-interest loans . Good advice is often expensive here. The variable interest rate has the advantage that the loan can be repaid at any time; Also special payments, so that either the monthly credit or the duration change, are possible. Another aspect that can be a disadvantage, but also a disadvantage, is the reaction to the European interest rate.

If the key interest rate goes down, the interest rate on the financing will also fall, reducing the monthly burden. However, if the prime rate rises, so does the monthly rate – the credit becomes more expensive. The fixed rate does not respond to such changes. It therefore does not matter if the base rate rises or falls – the monthly repayment remains unchanged. If you decide on a fixed interest rate, early repayment of the loan is possible, however, the outstanding interest must also be paid. Thus, there is no de facto savings.

The disposition and rescheduling loan

Financings that have high interest rates may be suitable for debt rescheduling. The aim of debt restructuring is to improve the financial situation. Disposition loans, the simplest variant of a loan, are known for their high interest rates. In the case of a credit line, the bank grants an overdraft facility; This means you can “overdraw” the current account up to a certain amount. As a rule, the sum is three times the monthly income. Such financing is extremely expensive and is mainly only a temporary solution. However, if you notice that the repayments do not bring the desired success and the outstanding balance is no less, the outstanding amount can be repaid with an installment loan without a purpose. In the end you benefit from the better conditions and escape a possible debt trap. Such debt rescheduling loans are also suitable if there are already several financings and the risk threatens to lose track. Add up the open sums, take out a credit of the appropriate amount and, at the end, get everything under one roof – this also saves you from multiple interest charges.

Professional help with the selection of loan offers

Of course, there is also the option of contacting your bank adviser, describing your plans, and then getting a loan offer. However, even if you’ve known your adviser for several years, it’s important to compare that to other offers you find on credit comparison portals. There is also the possibility to contact a credit intermediary. He is making the comparison with you; however, such activities are not free. The costs that are incurred are added directly to the completed loan; You therefore pay the brokerage activity with the loan installments.

Compare loan offers

Not only the interest rates for the respective loans fluctuate, also the loan conditions for the respective products of the banks vary strongly. Therefore, it is always advisable to compare the loan offers. This applies both to private consumer loans , consumer loans , car loans and also to credit offers for real estate .

And just there in the context of planning for the home, builders should conduct a loan comparison for mortgage lending , because the loan amounts are very high and the terms are very long. In order to obtain a loan offer, borrowers should be aware of a possible monthly repayment amount, which still leaves some financial leeway despite a permanent high financial burden. A comparison of the loan offers is therefore very advisable.

Bottom line: take time to choose the loan offers

Credit offers are – especially since the emergence of online banks – like sand on the sea. It should be noted that – even if there is currently a period of low interest rates – not every offer is cheap. While many banks offer favorable interest rates, they charge extremely high fees. If you want to complete a fair financing, you should not only answer in advance the questions for which purchases the money is needed and whether there are certain loans for it, but also how high the total burden is at the end.