Consumers who are looking for a cheap loan primarily pay attention to the interest rate. This is fundamentally not wrong since the interest rate provides information about the costs of a loan. The cheapest loan can be quickly and easily determined by comparing the interest rate.
However, in order not to experience any nasty surprises later, it is important to find not only a cheap but actually cheap loan. But how does a cheap loan differ from a cheap loan? What criteria should consumers pay attention to when comparing loan offers?
A cheap loan is versatile
Most loans are paid out by banks for free use. That means they can be used for any purpose. No matter whether a home renovation is pending, a new car is needed or the washing machine needs to be repaired, this can be financed easily with a cheap loan.
In certain cases, however, there are also special loans, which are usually a little cheaper than classic installment loans. These include in particular:
- car loan
- apartment loan
- Student loan
- Construction Financing
- debt restructuring
So if you are interested in money for one of the purposes mentioned, you should also look for a dedicated loan. In this way, you can save a lot more. Consumers can find a cheap car loan at any time in the online comparison of Good Credit.
Finding cheap credit online – numerous advantages
When looking for a cheap loan, it is worth taking a look at the Internet. Compared to the branch, online loans are in many cases offered at significantly more favorable terms. Additional advantages include the simple application and quick processing of the request. Who compares the loan offers with the credit calculator from Good Credit benefits in particular from the following advantages:
Save a lot of interest with a cheap loan
With an online loan comparison via Good Credit, users can save twice. First of all, borrowers usually pay less interest on a loan from the Internet. On the other hand, you can find a cheap loan in this way that perfectly matches your own wishes in terms of loan amount and term. The following example shows the potential savings with an online loan:
Compare cheap loans from the comfort of your home
The Good Credit online comparison can be conveniently carried out at any time of day or night from the couch at home. To find a cheap loan simply enter the loan amount and the desired term in the loan calculator. After a few moments, a list of the current cheapest loan offers is displayed. In addition to the effective annual interest rate, the monthly installment, as well as interest and total costs, are directly visible.
Fast and uncomplicated processing of the credit request
If a cheap loan was found with the calculator from Good Credit, you can apply for it directly online. Simply fill out and send the application form of the chosen bank. If the credit check is positive, print out the documents and send them to the bank by Good finance. In many cases, the loan amount is already in your own checking account within 48 hours.
Which is a better interest rate that is dependent on creditworthiness
The credit rating is an important criterion when looking for a cheap loan. The majority of banks now offer a credit-dependent interest rate on their loans. That means: the better the credit rating, the less interest has to be paid. On closer inspection, this is also logical, since the credit risk for the bank increases with decreasing creditworthiness.
However, there are also banks that offer a uniform interest rate regardless of their credit rating. If the loan is approved, all customers receive a uniform interest rate.
Which variant is cheaper always depends on your personal requirements. For borrowers with a high income and sufficient collateral, an interest rate that is independent of creditworthiness can be worthwhile. The starting interest rate is usually very low and therefore enables a particularly cheap loan.
A major disadvantage of interest rates dependent on creditworthiness is the lack of transparency. The requirements vary depending on the bank, which makes comparison very difficult. In addition, the exact interest rate is only determined after a final credit check. If you want to be on the safe side, you should, therefore, opt for a cheap loan with an interest rate that is independent of creditworthiness.
Bad credit can prevent cheap credit
In Germany, banks always carry out a credit check before lending. This includes, among other things, a query at Credit Checker.
If there are negative entries here, this almost always leads to rejection.
In addition, the borrower must provide personal income information in the application. In addition to income, this also includes regular expenses.
It is important that after deducting the cost of living there is still enough money available for the monthly payments.
Improve Credit Checker Score for a cheap loan
Banks use the Credit Checker score to draw conclusions about the customer’s creditworthiness. The score thus decides whether a loan is approved or which interest rate the borrower receives.
The Credit Checker Score is a percentage value that indicates the probability of default. If this is well below 100, the granting of a cheap loan is almost impossible.
In this case, it is advisable to take measures to improve the Credit Checker score. It is best to obtain a self-assessment from Credit Checker before the credit comparison. This is possible once a year free of charge.