Loans come in many forms. But the only question that arises for many interested parties, where they can get the cheapest loan. The market is already flooded with offers that promise the lowest or the best interest.
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But you can really rely on the fact that all these offers are indeed in the interest of the customer. How can you really find the cheapest loan and what must be paid attention, so that the borrowed money is not significantly more expensive? Questions to be answered here so that each borrower can make his choice to the best of his knowledge.
Provider of cheap credit – How to find it?
Usually only the comparison of offers helps here. For this purpose, it is advisable to look for comparison portals on the Internet that exist in a very large variety. Here, the various loan offers are very clearly placed next to each other and the sorting can usually also be changed so that you can get the cheapest interest rate. However, there are also banks that advertise directly with low interest rates.
For example, the Santander Consumer Bank can be mentioned here, as many offers do not charge an interest rate of more than 4 percent. This is also independent of the credit rating and is given over the entire term as fixed. This way, a very accurate bill can be made, which then offers a high payment security. For some types of loans, the interest rate can even be adjusted variably, which is particularly helpful to the customer.
Erste Bank and Sparkasse also grant loans at very favorable prices. Here, the minimum value is already at 5.4 percent, but this depends on the creditworthiness of the customer. The interest rate can be chosen as fixed or else used as variable in order to be able to adapt to interest rate fluctuations. Especially in times of falling interest rates, this can be beneficial for the borrower.
It is also worth mentioning BAWAG PSK, which boasts an interest rate of 5.3 percent, but which is also tied to creditworthiness. Here, however, an account maintenance fee must be taken into account for all loans, so that they still come along every month over the entire term.
BAWAG PSK also offers to set the interest rate as fixed or variable, which may make sense especially for longer terms. In addition, the optional residual debt insurance can always be taken out here, which protects the borrower in the event of loss of work or other financial difficulties.
Important: Compare loan offers before closing
What must be respected?
If you want to find the cheap loan, you must not only cling to the interest rate. Certainly a favorable value is the alpha and omega, but also the running time can have a decisive influence on the total costs. The longer a loan has to be repaid, the more costs inevitably arise from the interest. This is the case with all transactions of this kind. However, especially with a variable interest rate must be planned more accurately.
Variable interest rates adapt to changes in the market. If the key interest rate rises, so do the costs on your own credit, which then increases the cost of money accordingly. This is precisely where long-term loans are concerned, as they are usually hit longer by a high interest rate. This is due to the fact that banks are quick to raise interest rates, but they are much harder to correct them downwards in one second. Anyone who hears a corresponding rate cut from the media or other sources, should therefore immediately talk to his lender, if not something can be done on the interest rate. Otherwise, a rescheduling can still be considered on more favorable terms.
Are credit intermediaries cheaper?
Also a multiplicity of credit brokers advertises with the most favorable credits. But in fact, in many cases, the offers do not differ from those of the banks. The deviations are in the range of 0.02 to 0.8 percent, so that nothing really changes over the entire term of the loan.
This is also the big misunderstanding, because loans must always be calculated to the full length of the repayment. It is not enough to know the interest for a month, because in this area, the values are very good. Credit intermediaries can, however, in some cases make more favorable terms when cooperating with foreign banks, for example. Here, the interest on interest at the interest rate that prevails in each country. These may well be lower than in Austria, so that a request may be worthwhile in some cases.
What does the credit rating have to do with the costs?
First of all, every prospective loan applicant should be aware of their own credit rating. This has a significant reason, because many interest rates and terms are tied to the borrower’s ability to pay.
If, for example, there are negative entries in the KSV, the lending depends on the sums involved and the amount required. This may mean that you will not be able to lend money or only at a much lower interest rate. This is due to the fact that risk loans are secured by an increased risk interest rate. Thus, the borrowed money here is significantly more expensive.
But not only the KSV can play a role in the search for a favorable credit. Also, income and expenditure must have values that are in an acceptable relationship to each other. If the borrower, for example, earns 2,000 euros a month, but still has to pay 1,100 euros of these taxes to pay all the bills, the balance is just enough to make a living – even if only sparingly. Even without a negative entry in the KSV, the credit rating is then significantly reduced and in many cases such values even lead to the rejection of the loan.
However, with an income of 3,500 euros and a monthly payment obligation of 1,100 euros, the credit rating is considered very good, as the remaining 2,400 euros are well beyond the seizure limit and thus provide good security for the bank.
Collateral can help
If you are looking for a cheap loan, collateral can help a lot. For example, those who use their property as a hedge generally receive a good interest rate and the loan can be negotiated at low cost. However, only if the building has already been paid. If a mortgage is on the house, then another entry is considered subordinated before the actual mortgage. Thus, the latter bank would have to wait for your money, since in case of default first the defaults of the institution, which has awarded the original real estate loan.
Who wants to use vehicles as collateral, which should make sure that they still have a corresponding residual value, which is also accepted by the bank. For jewelery or other valuables, it usually suffices when an estimate is made. This document can then be sent to the bank.
As far as possible, a guarantor should be waived. This not only gets into the problem of having to stand even for the credit grade, but it also worsens the own credit rating. The placement of a guarantor is always equated with his own insolvency, so that here the chance of further loans declines significantly.
Do not shy away from the call
Finally, one should not be afraid for a cheap credit, the banks themselves to contact and ask for appropriate conditions, adapted to their own needs. A comparison provides a first overview, but his own experience can not be replaced by him. In addition, a direct negotiation can still lead to an improvement of the offer.