The cheapest loan: Compare helps save
For car financing, for property purchases or for unforeseen large expenses: taking out a loan is cheaper today than ever. Low interest rates and – apparently – lucrative offers from the banks make a consumer, motor vehicle or real estate loan within reach for everyone, and that without high interest charges.
However, there are a few things to consider before borrowing. Because interest is not everything – and in many cases even these are not as cheap as many banks initially claim. Ancillary costs, contractual clauses, lure offers – traps lurk everywhere, which cause the loan costs to skyrocket.
Consumer trap overdraft facility
Many consumers first go to their house bank for lending. They trust their advisors and shy away from soliciting offers from other banks. However, this procedure can sometimes cost a lot of money, because the house bank certainly does not always make the best offer. To determine this, you should first consider what type of loan you need. This is the easiest way to obtain the overdraft facility. Many banks offer it automatically with regular cash receipts and it is usually a multiple of the net wage. However, the simple and unbureaucratic availability has its price – the interest rates are comparatively very high, so that the overdraft facility should never be used for large amounts and over a longer time frame.
Dedicated loan for low interest rates
An installment loan is almost always the better and cheaper choice. There are also differences here. A dedicated loan is often cheaper. If you need money to buy a property or a vehicle, many banks offer loans at a particularly low interest rate. The background: The banks have the property or the vehicle as security in the event that the installments can no longer be paid.
Beware of lock offers
Low interest rates can often also be negotiated for a non-earmarked consumer loan. However, one should not fall for banks’ lure offers. These do not apply to every bank customer for a long time, but only to borrowers with excellent credit ratings – which is almost never the case for the average customer. In addition, there are often very long terms, which are often unnecessary depending on the amount of the loan. Ancillary costs that are not apparent at first glance often also belong to such enticing offers. For example, residual debt insurance is often sold. In many cases and especially with short terms, these are not necessary.
Compare loans and benefit from special rates
To find the best loan offer, only comparison helps. A credit comparison on the web usually turns out to be the best and most straightforward solution. It is neither necessary to visit various banks personally and to enter personal data again and again, nor is a credit query on the Internet negatively affecting the Credit checker score. You can compare different offers without any obligation. After entering some basic data, the online comparison lists all offers including all additional costs. The request itself remains anonymous, only data that is not inferred from a specific person is requested.
Those who opt for an online loan comparison can often benefit from special conditions, such as a particularly low interest rate that the portal negotiated with the bank and which only applies to online transactions. The money can often also be paid out quickly and within a few days. Online credit is usually the best choice for customers who need money at short notice.