For many households, there is a short-term need for money for an unplanned expenditure. Usually there is no time to save the required amount and the spending of money does not tolerate any delay. In these cases, households generally use loans to meet the upcoming costs. There may be very different motivations for the cause of the upcoming financing. As a borrower, you should therefore analyze the loan offers carefully and determine the suitable form of loan for the financing purpose by comparing their terms. With the help of a loan calculator, the effects of different interest rates and terms can be quickly recognized and individual loans compared.
Online loan comparison
Special credit comparison calculators are available to carry out credit comparisons online. The credit comparison calculator can access countless offers from different providers, and so select the cheapest loan for the interested party based on the entered specifications. A particular advantage of online loan comparison: the prospect can carry out the comparison without providing personal data and thus get an overview or make a pre-selection. Personal data is only required when a personal offer is requested.
It depends on the evaluation
The customer can determine whether an offered loan is really a cheap loan by evaluating the loan costs. It is not only the nominal interest for the borrowed money that plays a role, but the so-called effective interest rate. It contains the nominal interest rate and also records all other costs. These can significantly increase a nominal interest rate and make the loan expensive. The effective interest rate includes commission and transaction fees as well as any costs for account management or the credit check of the loan customer. Costs for a contractually agreed credit default insurance are not recorded. The legislator is required to state the effective interest rate. Only he makes a real cost comparison for loans possible.
Different types of credit for different purposes
The usual loan for private households is the installment loan. It is mostly used for the purchase of consumer electronics consumer goods, household appliances, furniture or other purchases. Since installment loans are rarely subject to a specific purpose, the money can also be used for a vacation or similar expenses. The term of this type of loan is often 4 to 6 years. The motor vehicle loan is often used as a fixed-rate installment loan. It is linked to the payment of a certain motor vehicle and is often paid directly to the seller. To secure the loan amount, the certificate of ownership of the vehicle is usually deposited with the creditor as security. So the car can not be resold without permission. Automotive loans can also be compared on the Internet.
Call credits can be very expensive
The frequently used overdraft facility is a so-called call credit. It is agreed as a precautionary measure between the bank and the customer and may or may not be used at the customer's instigation. It is used sensibly if it only bridges very short-term financial bottlenecks. A disposition loan can be repaid at any time by means of incoming funds. It only exists for the period of overdraft. The interest on these call credits is generally significantly more expensive than for installment loans. If a overdraft facility is drawn on permanently, experts therefore recommend rescheduling a installment loan. In comparison, this has a much lower interest burden and thus provides financial relief for the borrower.