Around 220 banks are available to consumers in Germany. Their most popular products include personal loans. The costs and conditions of a loan can fluctuate greatly from provider to provider. Choosing a cheap provider can save you several hundred dollars over the term of the loan.
Clever comparison helps you save
The internet is one of the best sources to compare loans. Not only can you see many offers there at a glance, more and more providers also make it possible to make an inquiry online or offer loans from the outset only on the Internet. But you will soon find out that a loan with a low interest rate is not like the other. The special conditions of the respective bank arrive.
Some lenders only offer a low-interest rate loan to customers with good credit ratings. Interest rates are often higher for customers with poor credit ratings. It is therefore worth paying attention to such details as an interest rate that is independent of creditworthiness. The same applies to the term of the loan. Quite a few loans offer cheaper interest rates with short terms than with longer-term repayment periods. Some financial institutions offer loans with interest rates that are independent of the term.
What else should you consider?
You often get a loan with a low interest rate if the loan is earmarked. This applies, for example, to loans to finance cars or real estate. The interest on such loans is lower because the things financed can be provided as security. When comparing, it is advisable not only to pay attention to the loan with a low interest rate, but also to take the other conditions into account.
If you are allowed to make free special payments, you can also save a lot. The earlier the loan is repaid, the faster the monthly debit payment will be eliminated. It is ideal if you can flexibly structure the credit line, which means that you can increase it if necessary. This saves you from applying for a new loan if financing needs suddenly arise.