No one has to pay more than necessary for their credit. Who compares, secures the best conditions and creates transparency where the view is clouded by the immense variety. Certainly, the way to the account-holding bank is simple, but whether you get the best interest rates at the house bank is still questionable.
Loan Comparison FAQ
What is a loan comparison?
A loan comparison is about comparing the conditions of different loans. The goal is to find the loan with the best conditions for your circumstances. A loan comparison is usually carried out online. However, the conditions of the personal bank should also be taken into account in this context.
If you want to make a comparison, you should make a condition request to your bank and additionally search for further offers on the Internet. The more loans you compare, the more favorable your interest rate will be in the end and thus the total amount you pay to the lending bank on balance.
Tip
Even in difficult situations, with an urgently needed credit or small restrictions in the Schufa is advised that you do not accept the first offer. For any loan and all related terms, as a borrower, you can compare to secure advantages.
Loan from the bank or online loan?
You have been satisfied with your bank for many years and certainly receive benefits that are only available to the bank's customers. But whether the bank's offer provides the best loan with the lowest interest rates is unfortunately questionable without a concrete loan comparison. In practice, it turns out that a loan on the open financial market is often more favorable in terms of interest than the loan offered to you by the bank at its conditions.
Focus in detail on the interest rate, not forgetting that there are other criteria for a comprehensive loan comparison besides low interest rates. A loan that suits you meets your criteria and gives you the flexibility you want within the term of the loan. For larger loans, you may be able to make free unscheduled repayments or, as a borrower, take advantage of a temporary suspension of rates, or rate reduction, at no extra cost.
If you base the loan comparison only on the interest rates, it can lead to the wrong decision and get you into trouble when the financial background changes. Whether you ultimately choose the loan from your bank or a loan from the free financial market, you choose best through the transparency in a loan comparison.
These points they should consider when comparing loans:
Flexibility with unscheduled repayments, installment suspensions and installment reductions Reliability in terms of protecting your own data Personal background in terms of your own credit rating
What you should pay attention to as a borrower!
Your car breaks down or the electricity provider demands a high additional charge. Now good advice is expensive and you are looking for a loan with a favorable interest rate. Especially in the case of instant loans or if you are a borrower with restrictions in creditworthiness and decide to take out a loan without Schufa, you should be attentive to the search and go to the important loan comparison.
Attention!
If you need the money immediately or within a few days, the bank can help you only in rare cases. In contrast, you will find a variety of offers at financial service providers and in your own research on the web, which are just waiting for a loan comparison and in which you do not have to search long for the optimal loan for you. Do not orient yourself to the interest rates advertised directly on the home page of a comparison. These are examples that do not necessarily apply to you.
The interest rate is based on your credit score and therefore varies for each borrower. Only a credit comparison, which you can make online without giving your personal data, will show you where you really should apply for a favorable loan and make a request for conditions in advance. you can find out your personal interest rate for the loan by making an inquiry to the bank or lender from the Internet, emphasizing that you are not asking for a loan, but for the terms and conditions.
This is important
The interest rate of a loan depends on your personal creditworthiness. A loan comparison can provide you with an initial overview of a suitable lender online without the need to provide personal information. You then send a credit inquiry or a condition inquiry to the most interesting providers and thus find out your personal credit conditions. On the basis you can then decide on the best loan.
In this way, you also save yourself a creditworthiness-restricting entry in the Schufa and still find out what conditions are granted to you as a borrower and whether the offer of this bank is suitable for you. You make the loan comparison in a few minutes and then you are aware of which bank gives you the best interest rates and where you can apply for your loan cheaply, as well as to the criteria that are relevant to you.
Good credit rating, good interest rate
The better your credit rating is, the better the credit conditions of a bank are. As a borrower, you should request a Schufa report before applying and find out which entries exist about you and how Schufa classifies your score value.
Those who have a positive credit rating receive better conditions from any bank than a borrower who is assessed with a higher risk and for this reason pays higher interest rates for the loan. Should you compare loans for a loan without a credit check, you should inherently expect a higher interest rate than for a loan with a credit check. If you check with your bank, the credit score for you as a borrower will be different. This is where the bank's personal arguments enter into the decision and may well help you, for example, as a long-time customer, to finance more favorably than you would if you applied for a loan from an outside bank.
Why interest rates should be the focus of every loan
You have a certain amount in mind for the loan. But you should keep in mind that the interest is an important part of the repayment. Compare loans to find out where you're saving and which bank you're paying off a rate that's way too high.
In addition to the general interest, which depends on your creditworthiness and varies for each borrower, the bank charges an annual percentage rate (APR) on the loan. You can identify the most favorable loan that suits you in the loan comparison by the fact that the total amount including interest and effective annual interest rate is lower than the alternative offers for a loan.
When you make the loan comparison, check the interest rates in detail and get more information on flexibility in repayment. You can also include free unscheduled repayments or a reduction in installments possible at any time without additional costs in the credit comparison. It is also worthwhile to make a loan comparison for different types of loans. If you are looking for a loan for a car, you can also make a loan comparison for cheap installment loans.