Cheap loans – How to apply?

Almost every project that consumers plan can now be financed with a loan. There are an infinite number of loan offers and every bank advertises selling cheap, one-off loans. But it is not quite that simple, the credit offers of the banks differ significantly in some cases. Those who really prefer cheap loans should do a free credit comparison beforehand in order to really find the provider who not only advertises with cheap loans, but actually also provides cheap loans.

The market determines the amount of interest

The market determines the amount of interest

The extent to which cheap loans are really cheap is determined by the market. When market interest rates are very low, savers get little interest on their savings and borrowers have the advantage of having to pay relatively low interest rates when taking out a loan. In other words, there are cheap loans in low interest rates, so it is more worthwhile to take out a loan because the borrowing costs are lower. Of course, cheap loans are also offered in periods of high interest rates, but then at a different level.
The question of whether cheap loans are really cheap depends largely on the conditions on the financial market. Loans that cost 9.90 percent interest in high-interest phases can be cheap – at this time – in a low-interest phase, 9.90 percent are far too expensive.

Gain an overview with a loan comparison

Gain an overview with a loan comparison

In order to find cheap loans with as little effort as possible, there is the option of making a free loan comparison on the Internet. The comparison portals have set themselves the task of presenting their users with the best providers of cheap installment loans on a daily basis. The banks are listed in a table, the top places are the banks that offer the cheapest loans.

Now you could assume that it would be very easy, now the loan application only has to be made to the bank that takes first place. Unfortunately it is not that simple and why you will find out now.

In first place can be a bank that advertises with very low interest rates depending on the credit rating, but only offers loans from a loan amount of 3,000 USD. If you only want to take out a small loan of over 2,000 USD, this offer is out of the question.

There are now comparison portals on which loan seekers can enter in advance into a loan calculator how high the loan they want to take out and the term of the contract should be. If the loan calculator knows these requirements, it will only make a loan comparison between providers who meet the premises set. This is a qualified loan comparison, which actually gives the loan seeker a good overview of all banks from which a loan of the desired amount can be applied for at the desired term.

Cheap loans with interest rates dependent on creditworthiness

Cheap loans with interest rates dependent on creditworthiness

Banks that advertise with interest rates dependent on creditworthiness have the advantage that it is possible for them to quickly top the free loan comparison with the low interest rates. But that doesn’t mean that it will be cheap loans for customers. Unfortunately, credit-related interest rates have the disadvantage that they change from borrower to borrower. In the end, the personal creditworthiness of the individual determines the amount of the interest. In other words, the police officer will get his 10,000 USD loan on better terms than the bus driver.

The professional group influences the creditworthiness, but the age, gender, marital status and place of residence of the loan applicant also play a role in the assessment of the creditworthiness. However, the credit rating system is so complicated that ordinary consumers will never understand what’s going on. You don’t have to, but you should know that the chances of getting a loan with interest rates dependent on creditworthiness as cheaply as it is advertised are only minimal or maybe even hopeless. Only very few borrowers have really cheap loans with interest rates dependent on creditworthiness.

The alternative is cheap loans with fixed interest rates

The alternative is cheap loans with fixed interest rates

If you want to save the effort with the personal offers, you should be interested in cheap loans with fixed interest rates. These are loan offers where the interest rate only depends on the loan amount and the term. Of course, loan applicants must be creditworthy to get cheap loans with non-credit interest, but the interest rate is the same for the police officer and the construction worker. The credit default risk is distributed evenly across all borrowers. At first glance, these loan offers do not look like cheap loans, which is why they are lower in the loan comparison, but they are often cheaper than loans with interest rates dependent on creditworthiness.

Do not make cheap loans more expensive through residual debt insurance

Do not make cheap loans more expensive through residual debt insurance

Cheap loans can be really expensive if you have additional debt insurance in addition to the loan. The residual debt insurance is a real cost driver. Here the insurance premium is apportioned to the monthly installments, but the premium is not reflected in the APR.

Loan for indebted people – is that possible?

Debts are not the same as debts. A debtor may be able to borrow easily for those in debt if the existing debt consists of another loan. This is often the case when the fixed interest rate on a loan expires and another loan is taken out for debt rescheduling.

Use credit for debt restructuring

Use credit for debt restructuring

Anyone who has purchased a property is generally in debt for many years. The debt is hardly noticeable in everyday life, since the installments are included in the monthly planning as a fixed expense. In some cases, however, it is necessary to take out a loan for indebted people for other important purchases. This can happen if urgent renovations need to be made to the property. The expiry of the fixed-rate obligation on the real estate loan is also a reason for taking out a new loan.

In this case, borrowers look for offers that offer low interest rates. The amount of the loan for indebted people usually amounts to the amount of the original loan still to be paid. This is triggered with the newly taken out loan, so that from now on the favorable interest rates will again exist.

Caution is advised

Caution is advised

A loan for indebted persons can certainly also be taken out in other cases. People who are in a financially problematic situation and who are heavily in debt often play with the idea of ​​paying off their debts through a loan. The problem here is that indebted people have no credit rating. The risk that banks would take on lending is too high. In order to be able to pay off at least part of the existing debts and to avoid any seizures, a loan can be taken out from a private individual. Platforms on the Internet offer sufficient solutions for this.

But even with this borrowing, punctual payment of the individual installments must be guaranteed. If the borrower is aware from the outset that he has no possibility of payment, borrowing can be punished as a deliberate fraud. In the resulting criminal process, the borrower incurs additional costs, which are added to the often high punishment.

In principle, any person involved in borrowing should consider whether the requirements can be met before entering into a contract. An already negative Credit Bureau information will not be improved by further obligations. If a loan has to be taken out for the indebted, the sum should be used to settle the old debts. Once these charges have been paid, the financial situation of a debtor changes in many ways for the better and the installment of the loan taken out can be guaranteed.

Credit Card Insurance – Which Can I Get?

Most credit cards come with free travel insurance, but did you know that you can also book other insurance through your credit card?

Most credit cards come with free travel insurance, but did you know that you can also book other insurance through your credit card? The offers vary from credit card to credit card, so we have compiled an overview of some of the most common insurance policies.

 

Insurance

Insurance

Most credit cards come with a free travel insurance if you pay half the journey with the credit card. If you pay the airline tickets with the credit card, you will automatically already have covered large parts of the journey. When you buy airline tickets with credit cards, you also insure that the airline is going bankrupt.

 

ID theft insurance

More and more people are experiencing identity theft, which includes situations where, for example, another person tries to open a bank account, apply for a loan or create a subscription in your name. An ID theft insurance usually covers help to prevent identity theft, assistance if you experience an identity theft and legal assistance of up to $ 1 million. This is a nice insurance if it comes free. If it is not included for free, you should carefully consider how much risk you think it is for someone to steal your identity.

 

Payment Insurance

Payment Insurance

Payment insurance is an additional insurance that helps you if you become sick, unemployed or laid off. Should any of these situations occur, this insurance will cover your monthly credit card obligations. The price of this insurance varies depending on your credit card, but is often somewhere between 0.6 and 0.9% per month of outstanding balance.

 

Purchase and price guarantee

A purchase insurance covers your costs if something you have bought is something that is destroyed, lost or stolen. The insurance will cover the expenses it costs to fix the product, or possibly cover the purchase of a new product up to a certain amount. There are several conditions for how long the insurance will last after the purchase is completed, and it pays to familiarize yourself thoroughly with the insurance terms of the credit card company.

A price guarantee will replace any intermediary you have lost buying an item more expensive somewhere compared to what you could get it for somewhere else.

 

Rans Insurance

insurance loan

A ransom insurance covers any losses if you are robbed immediately after withdrawing cash from an ATM and up to a certain period after withdrawal, usually 24 hours.

 

Ticket Insurance

Some credit cards also offer ticket insurance, which will cover your ticket expenses if you are prevented from going to the event you purchased your ticket for.

This is an overview of some of the insurances that you can purchase extra through your credit card. The different credit card companies offer different insurance policies and the terms vary. Carefully consider whether you can take advantage of some of the insurance offered or if you have already covered it through another insurance.