Loan interest rates are currently at a very low level, both in real estate and installment loans. Nevertheless, not all loan seekers receive the desired loan, which can be due to various reasons. In the following guide, we would like to give you five tips that deal with borrowing and may even increase your chances of getting the loan you want.
Tip 1: Compare offers with each other
Probably the most important tip in connection with a planned borrowing is to compare the existing offers. You should not necessarily request individual credit offers individually, as this is very time consuming and sometimes even weeks, until the desired offer is present. Instead, it is much more effective and time-saving to make a credit comparison online. The more deals the particular loan calculator contains, the greater the chance that you will actually find the best loan offer for you. Note, however, that such loan calculators are only limitedly suitable for loan offers, where the interest rate is credit-dependent. In this case, most of the time, only one interest margin is given, as your credit rating determines which interest rate the bank actually charges. However, for general information and for a rough comparison, the loan calculator is best suited.
Tip 2: Loans on the Internet are often cheaper
You may be wondering whether you would prefer to take the loan at the office of your bank or on the internet regarding a planned loan. Most of the time, so-called online loans are cheaper than taking the loan at the bank’s office. This even applies to credit institutions that offer both distribution channels, both the office and their own website. However, if you need and want more detailed advice on the proposed loan, your decision should be based on the loan you can apply for at the office. As a rule, there is no advice via the Internet. However, if it is a simple loan, such as an installment loan, the internet is likely to be the better option in most cases as a way of borrowing.
Tip 3: Set loan amount, approximate duration and maximum loan installment
Another tip about borrowing is that you should be aware of how the individual components of the loan you want to look like before you apply for the loan or the loan. It is above all the following key data that you should think about in advance:
- loan amount
- Maximum loan rate
- running time
- Special repayments desired?
In particular, the maximum loan rate is an important factor, because of course you do not want to get into financial difficulties by the later repayment of the loan installments. To identify this maximum monthly burden, it makes sense to set up a revenue and expenditure account. If you contrast your monthly income, in the rule your salary, and the likewise regularly incurred expenditure, you can determine your freely disposable income. This in turn represents the absolute upper limit for a possible credit rate. If the maximum credit rate determined and your desired loan rate do not match, at least not in combination with the planned duration, it is recommended that you opt for a slightly longer term and so the reduce monthly rate.
Tip 4: Think about the right type of loan
Although it seems natural to many consumers that they want to use the appropriate loan for a planned financing. In practice, however, it is not uncommon for loan seekers to compare the offers, but then opt for a less suitable loan type. Added to this is the fact that many consumers no longer know how many different loan options the credit institutions currently provide. For example, there are the following types of loans that can be the right solution for the individual loan seeker:
- Classic installment credit
- credit Facility
- Real estate loan
- car loan
- call facility
- credit line
- Credit for self-employed
- credit without
For example, if you have a car loan, the classic types of loan and car loan are eligible for the aforementioned types of loan. If, on the other hand, you disregard car loans offered by many banks when comparing offers, you run the risk of losing the cheapest offers. For larger car repairs, the car loan may also be appropriate, while not a few consumers instead wrongly opted for their disposition credit, but it is very expensive.
Tip 5: Include rescheduling can make sense
If you plan to borrow a new loan, for example, to fund the purchase of a particular consumer item, consider using any appropriate retraining that may be appropriate in this context. Such a retraining measure can always make sense if you already pay off one or more loans. If you borrow a new loan for every major issue, it can quickly become confusing about your financial circumstances. This is often confirmed by borrowers who pay between three and six different loans at the same time. If you then want to take out a new loan anyway, it may make sense – sometimes due to more favorable interest rates than in the previous loan – to choose the loan amount slightly higher and replace some or all previous loans with part of the new loan. Then you pay only for a loan, the monthly loan, which of course contributes to a high degree of transparency and clarity.