No matter whether it is a property purchase, the purchase of a new vehicle or a new home furnishings – you always need external financing, because the savings are not enough. But what needs to be considered with a loan? It is important that the prospective customer carries out a comparison in advance.
Only when the customer makes a comparison can he be certain that he has found the best offer for himself. But when comparing the different types of financing directly, it is important that he compares the main points of the loan.
Above all, online loans are becoming increasingly popular. Online loans have the advantage that – compared to the financing of traditional banks with branches – they offer more favorable conditions. But not every online loan is actually cheap. The comparison shows that many banks advertise with favorable terms, but in reality they say nothing about whether the financing is actually cheaper than with other providers. The customer primarily compares the interest rates of the online loans. The interest rates for online loans range from 2 percent to 5 percent, depending on the purpose. But the interest rate really says little about online loans.
There are some portals on the Internet that allow a direct comparison of online loans. Here the costs and conditions are compared directly.
Many banks also offer their own loan calculator on their website. When comparing directly, it is important that not only the interest rate of the online loans is compared. It is also important that the monthly rates are compared. It happens that the interest rates for online loans are lower, but the monthly charge is significantly higher than for a loan with a low interest rate.
The reasons can be different. Higher processing costs or account management fees often make the low interest rate ineffective. But when comparing, the customer shouldn’t just compare monthly rates. It is also important to compare the total load.
Because the total charge at the end of the loan term shows how expensive the online loans (or cheap) they actually are. All additional costs are included here. There are, for example, processing fees, account management fees or costs for wage confirmations or various other fees.
This means that the comparison is effective and effective if the overall burden is also significantly lower than with other financing. There are several advantages and disadvantages to deciding what type of online loans are suitable. The advantages of a fixed interest rate are the stable monthly installments.
If the European key interest rate rises, the rate remains the same – so there is no inflation. The disadvantage: if the European key interest rate falls, the rate will not become cheaper. Likewise, the customer cannot repay the financing prematurely or, in the event of a repayment, still has to pay the interest due for the online loans.
With a variable interest rate, early repayment is always possible. The monthly rate is also based on the key European interest rate – this means that it can become lower. The disadvantage: If the key interest rate rises, the loan will become more expensive. These factors should also be taken into account when comparing online loans directly. No matter which offer the customer chooses – the comparison should ensure that the customer has found the best offers for online loans and has chosen the best offer.