Consumers who are unfamiliar with banking and credit often wonder what factors are involved in lending rates. Because many different offers from banks and banks flutter daily by mail or e-mail into the house . But also in every newspaper or in weekly newspapers one finds a lot of loan offers. Here, a layman hardly looks through, because everywhere different conditions are offered. Even if you need a loan promptly, you should definitely invest sufficient time to make a good credit comparison.
If you have different offers, you should compare with the loan calculator the expected interest. Because often only the nominal interest rates are specified in the offers, but in fact one must pay an effective interest rate. Therefore, it is easily possible to set off. If you do not compare, you often have to expect that you get relatively bad conditions on conclusion of the contract. Only those who apply for a loan well informed can be sure that they will not repay too much for the borrowed money.
Where should you not apply for a loan?
Various credit institutions or credit intermediaries offer their services but require processing fees prior to checking a loan. Similarly, many demand that you take out additional insurance, which is often overpriced and in principle not needed. Here you should definitely refrain from a credit request. A reputable credit institution does not charge any fees for reviewing a loan application. Similarly, the conclusion of an insurance should not be part of a loan agreement. The costs incurred for the loan include interest and a processing fee.
Even with instant loans or loans without Schufa no additional fees or insurance should be part of the contract. If you compare all the criteria before you finish, there should not be a wrong choice. In addition, you can save a lot of cash, if you complete the required loan at the cheapest provider.