Credit comparisons are very popular, but there are a few things to keep in mind to avoid falling into a financial trap.
Online loan comparison is now the first point of contact for consumers when taking out a loan. It’s convenient, you get a quick overviewof the conditions and can choose with just a few clicks. But before you even make a loan comparison, you should be clear about how high the loan amount should be. Sometimes it can make more sense to raise a little more money than you need – but this has to be considered carefully. An example: If you want to buy a property, it is advisable to raise a little more money, as repairs or facilities may still have to be bought. With consumer goods, on the other hand, you should take out as little credit as possible. As a rule of thumb for the rates, you can say that they should be chosen so that you can still save some money. If you consider these things, you can approach the credit comparison.
The loan comparison for real estate loans
When buying a property, loan comparisons can also be made using a credit calculator – the offers from the banks are then quickly compared. Interest and the repayment rate are then calculated from the purchase amount entered. The repayment rate should be at least one percent. When a loan comparison is made using a credit calculator, the other additional costs that the borrower incurs in the case of a loan are already factored in – so the borrower can already estimate well what costs and burdens will be incurred. Such additional costs can be the commission or a flat rate when the loan contract is concluded.
The loan comparison for small loans
Many will know that there are also so-called small loans. The loan comparison of these loans can sometimes be a little more arduous. In the case of small loans, banks often advertise that they have extremely low interest rates. Everyone is probably familiar with these advertisements of loans with under four percent interest. At first glance, this seems to be a favorable opportunity for the consumer for his loan, but unfortunately only a very small part gets this favorable interest rate. It is often overlooked that there is an “from”, ie “from four percent”, on loan offers. In order for the consumer to get a loan with this interest rate, there must be a very good credit rating and of course no negative Schufa entry.
What is important when comparing loans?
When comparing loans, it is definitely important to pay attention to the interest rate and in particular the fixed interest period – that is, for how long this interest rate has been in effect. This is stated in the loan agreement. Something that is also stated in the loan agreement is whether it is possible for the borrower to make free special payments. This should be negotiated with the bank in any case, as it does not pay a prepayment penalty if the borrower wants to repay more than the monthly rate. Another important point is the ancillary credit costs as mentioned above. Ancillary costs such as commissions, mortgage loan appraisal fees or account management fees. The additional costs include various insurance policies that can be taken out or taken out for the loan. For example, residual debt insurance,