It’s the natural way: When you inquire about a loan, you first check the interest and compare it with similar offers from other banks. The goal is clear: one hopes to find a loan with favorable interest rates. But interest rates are not always as cheap as it might seem at first glance.
The loan with favorable interest rates: compare worthwhile
In order to find a loan with favorable interest rates, one must first find out which interest rate is appropriate for which type of loan. For example: A car loan requires about four percent per annum, an instant loan between six and seven percent and the Dispo even eleven percent.
For example, a 9 percent discount is very cheap, even if interest rates are still far higher than, say, a car loan.
The only way to actually find out which interest rate is appropriate for which loan is to compare online different bids for a particular type of loan to get an impression of yourself.
The credit with favorable interest rates: Do not disregard the installment charges
Also, if you are primarily looking for the interest rates, then you should not disregard the rate burden.
The point of the search for the lowest interest rate is to pay back as little money as possible and, as the interest rate also has a direct impact on the monthly installment, there are no excessive installments to be paid.
Banks keep playing with interest rates and guarantee low interest rates for short-term maturities, which, however, cause rates to skyrocket (simply because the entire loan needs to be repaid relatively quickly).
If, instead, you choose a very long maturity, you will of course pay more interest because they are estimated annually.
It is therefore important to find the perfect compromise between rates and interest rates even at a supposedly low interest rate.
The credit with favorable interest rates: the charge trap
As attractive as the loan may seem at first glance, with low interest rates, the loan can prove to be devious in retrospect. Interest is not the only way a bank can cash for a loan.
She may also charge for various steps during lending. As a lender, it is very important to pay attention in this regard, because often enough banks lower their interest rates and drive up the fees significantly.
Before you conclude a loan agreement, you should therefore study exactly the fees. And while collecting this information, one should also address the question of whether interest rates are stable or can be increased if, for example, an installment payment is made too late. Especially with foreign financial institutions, this practice is not uncommon.