Classic thought game of a consumer: An acquisition should or must be made, but the own financial resources are not enough. So get a loan, preferably very cheap and above all fast. The problem with the matter? Most consumers still pay too much for their loans, often out of sheer ignorance or even out of sheer convenience to use something like a loan calculator or credit comparison on the Internet. It is hard to believe, but to date, many consumers still tend to conclude a classic consumer loan at their own house bank. The view that as a long-standing customer with a loan from the house bank also gets the best conditions, is still widely used.
Actually, hardly understandable, because straight online loans are often much cheaper. Especially when informed about how a cheap installment loan from the internet for a credit comparison and thus before a final loan conclusion remains favorable. Interests in a loan agreement, however, should know the personal risks as well as the parameters and terms of a good loan.
How good or bad is your own credit rating?
Whether it comes to the conclusion of a consumer credit for vacation, car & Co., depends essentially on the creditworthiness. What it means in plain language is that the better the creditworthiness of the borrower, the better the loan conditions, above all the annual percentage rate, will be. So if you are interested in receiving a installment loan, you should also obtain information about your own credit rating at the same time.
It is difficult to believe, but many people do not have any detailed knowledge of how their own credit rating is shaped and what influences it. Counteracting this – by soliciting a personal SCHUFA information – makes sense, because while banks and credit institutions only receive a rough classification through the Schufa scoring, the personal request for a Schufa entry includes detailed information about their own creditworthiness. For the first time, many interested parties will find out which financial products and contracts influence the credit rating. This ranges from the credit card to regular insurance premiums to the mobile phone contract.
Pay close attention to credit conditions
Committed interest rate for the entire term, possibility of early loan repayment without a rescheduling decision, at any time possible special repayments, etc. – all these are points that classify a loan agreement for a favorable offer for a borrower. It follows that these points should also be considered in a credit agreement. Settling solely on a favorable interest rate and a monthly loan installment that is as low as possible can ultimately prove detrimental. An example of the positive effects of additional agreements is the possibility of free special repayments. With the help of these special repayments, the outstanding obligations under the loan agreement can be redeemed early and you are much faster without debt.
Leidiges topic residual debt insurance
No – they do not need any residual debt insurance and there is no supposed obligation to take out residual debt insurance. Save yourself the unnecessary cost of such an insurance that only guarantees one thing: a commission for the bank. To the detriment of the borrower, because the alleged hedge brings with it an additional, monthly contribution, which is payable in addition to the repayment installment and becomes an additional burden.
Last but not least: use credit calculator and credit comparison – always
Even if time is running out, because otherwise a supposed bargain is lost: A loan may and should NEVER be concluded without comparison . The loan offers in Germany are subject to an almost daily change. Which results almost on a daily basis – at least but sometimes on a weekly basis again and again changes in the loan conditions. Just one example: While the local bank will charge a premium on its principal interest to finance its affiliate system, this looks different for pure online lenders.
Due to the mathematical and factual credit comparison , a distinction between good and bad offers is possible. Platforms of this type also provide rewarding information about lending, as a lay person to acquire comprehensive knowledge on the loan.