If you need a loan, you do not have to search for a long time. Banks overwhelm each other with new loan offers and promote the customers’ favor. This is a great advantage for consumers at first, but at the same time, in a way, a disadvantage, because you do not immediately know if you have made the right decision with this great offer. Below I have summarized some useful tips for a loan.
Do I really need a loan?
Straight installment loans are very attractive nowadays, which is somehow understandable. Thus, the monthly installments remain stable over the entire period, which also applies to the interest. Nevertheless, you should ask this question calmly, especially the more so, if you would have the required amount within a few months. So it is indeed very tempting, for example, if you choose for the new kitchen for 5000 euros a cheap installment loan with a term of 60 months, because you do not have to pay immediately the entire sum, but you are in the financial position, in a short time this To raise the sum, one has to think about it. If I put back 400 euros per month over a period of one year, I would be at a total savings of 4800 euros, I just have to be patient. However, this waiting time can pay off, because the kitchen is then offered for 4500 euros.
Borrowing money from family or friends
I have often mentioned this topic here in the blog. Anyone who wants to borrow money from the family, or even from friends, has to compare the advantages as well as the disadvantages. Although it is often the simplest way to get money, especially when the money is in the desired amount, this may not always be the best way.
What to look for in a loan?
A special repayment should be available for a loan. This allows the borrower to repay his loan early. The form of interest also plays an important role. Is it a variable interest rate or a fixed interest rate. But with a fixed interest rate you already know exactly what interest has to be paid. Furthermore, you should pay attention to hidden costs. If various fees are already incurred when paying out and you do not receive the full amount, the seemingly favorable credit will quickly become an expensive one. You should also take care of other services, for example, where free credit cards will be offered. If this is sometimes used, monthly fees may apply. So it is always important to analyze the conditions very precisely.
Compare loans quickly
Who of you has the necessary time can run from bank to bank and get various credit offers, but it is also much more convenient. Comparison websites can significantly speed up the search for a loan, so we should serve as an example here. But one has to say in such comparisons that very often also credit offers from direct banks are to be found, which can once again be significantly cheaper. Furthermore, these portals provide a much faster market overview of current interest rates, which in turn has the great advantage for the consumer that he can react much faster or get a loan on better terms.
Conclusion: Often, going to the house bank for a loan is the first choice for most customers, but worth the credit comparison with other banks. Depending on the amount of the loan, the difference here can be up to several hundred euros. If you have found a significantly cheaper loan, so it is very important to read through the conditions exactly and recalculate.