If you need a loan, you will first find out exactly which installment loan providers offer favorable terms. The Internet has become indispensable in the meantime, the financial institutions are listed with the comparable information on various portals. And yet the customer should also exercise caution here. It makes a difference whether an installment loan provider offers a low nominal interest rate and high processing fees or a slightly higher interest rate and therefore no processing fees.
The decisive factor for the customer should be the effective annual interest rate, which is required by law to make it easier for the customer to compare. In the current phase of low interest rates, the comparison is twice as worthwhile, because many banks cut the current conditions even further.
Repayment and term determine the conditions
A consumer loan that can be repaid in the short term is advertised with low interest rates and does not pose a risk for most banks. This is especially true when a fixed job can be specified. In most cases there will also be mortgages for real estate on good terms, the installment loan providers have the security in the form of a property, the value of which often exceeds the credit volume. But it is precisely in these long-term loans that financial risks can lurk for the customer.
It is important to agree on a fixed interest rate with the bank for as long as possible. At the moment, interest rates are very low and will increase in the foreseeable future. If you then have to renegotiate refinancing, you will have to pay significantly more.
Compare and trade offers with the house bank
You should first request a loan from your own bank. She knows the customer and will usually be able to make a quick decision. However, the customer should also call up the information of other banks and speak to the bank advisor of the house bank about the fact that other installment loan providers offer more favorable conditions. In many cases, the house bank will lower its own offer again in order to satisfy and keep the customer.
The offer of direct banks on the Internet can sometimes be cheaper because these financial institutions do not have to maintain their own branches. So if you value personal support with direct contact, you are in good hands with a bank with a personal contact. Almost all installment loan providers also offer this service over the phone to give every customer the feeling of personal all-round support.