A loan has to be cheap these days. Many borrowers want moderate credit rates, long terms and a fast payment. Unfortunately, many loan offers promise more than they actually deliver. A loan with a low interest rate, pleasant terms and installments can be found on the internet with a loan comparison.
The interest rate given should only be a criterion when borrowing
In most cases, a borrower’s first glance at a loan comparison falls on the interest rate. However, this does not ensure that this loan offer is actually the cheapest offer. Many credit companies incur processing or deployment costs. In some cases, the cheap loan is only granted in connection with the opening of a current account. The credit terms of the bank or credit institution are therefore decisive when comparing loans. In the credit terms, companies must list all costs that can actually arise in their offer. Since loans are mostly medium or long-term financial obligations, a loan with a low interest rate should be put through its paces before signing a contract.
Not every borrower receives the specified interest rate
A loan with a low interest rate is usually dependent on the credit rating. A good credit rating is an additional security for the credit company, which is rewarded with low interest rates. The bank also benefits from solvent customers thanks to the quick repayment of the loan. The creditworthiness of a borrower is determined via the loan application. The economic situation must be detailed in the application. The monthly income is offset against the fixed costs. With this calculation it is possible that a borrower with a low income receives a better credit rating than a borrower with a high income. This is often the case with borrowers with families. A positive Credit Bureau information and a regular income should be a matter of course for the borrower.
Direct bank loans are usually cheaper
Loans are offered on a wide variety of terms by branch banks, credit brokers, private credit portals and direct banks on the Internet. A loan with a low interest rate is always offered by one of the many direct banks on the Internet. These loans are particularly suitable for borrowers who are not averse to online banking and who can do without extensive advice. After a detailed loan comparison, the loan application can be processed online. After entering the personal data, a confirmation is usually sent by email within one day. The loan application must be printed out, completed and signed. With the copies of the current pay slips and the identity documents, the loan application is sent to the credit company by post. After approval, the loan will be paid out after a short time.