The credit market in the country is constantly changing and with digitization, a large part of the credit business has shifted to the Internet. As a borrower, this may be new and unfamiliar at first, but with our tips and tricks you can benefit from the transparency of the online credit market and simply find an attractive loan that you can get with little prerequisites and without paperwork.
Compare the loans quickly
Before you apply for a loan, it is worthwhile to get an overview of the credit market. You can use our free credit comparison calculator above to get a quick overview. The comparison calculator helps to compare the different loans and so easily see the terms of the loans. Simply set the desired amount and age. Then choose whether you want to see the most popular or cheapest loans first.
You will then receive a list of the online loans available to you. You can now see at a glance which bank has what interest and which conditions. Before you apply for one, read our 2nd tip.
Simply get a free loan
Is there nothing free in life? This is generally true, but every now and then you can be lucky and benefit from exceptions. Free credit is an exception. Loans without interest or so-called free loans are offered by certain credit institutions to attract new customers. This means that your first loan with this loan provider has no interest. Loans without interest are a simple means of advertising for loan providers. So you attract new customers and can convince them of your offer. As a customer, a free loan is a good way to determine whether it is worth continuing to work with this loan provider.
It is important with these loans that the amounts are relatively small and the term is short. You must repay your loan within the term, otherwise there will be costs. The no-interest loans are perfect if you have to overcome a financial emergency by the next payday.
Simply apply for the loan from several loan providers
A simple but good trick is that you apply for your loan not only from one loan provider, but from different companies. Getting your personalized loan offer is free and helps you see exactly what your terms are. Some loan providers base the final costs and fees on your credit score. Since you can easily obtain the loan offers online, it is quick and you will also get quick feedback from the credit institutions. Most credit providers no longer need documents by mail. The application process is completely digital. Simply apply for the loans via our comparison calculator, wait a few hours and then when you have the various offers in your mailbox, you can easily choose the best loan.
Pay attention to the APR
A good and very simple tool for comparing different loan offers is the APR. The APR includes the interest and all additional costs for the loan in a calendar year. In contrast to the borrowing rate, the annual percentage rate must include all costs directly related to the loan. The interest rate depends on the loan amount chosen and the term. The APR is higher than the debit rate. Compared to the borrowing rate, the annual percentage rate gives a more complete overview of the costs involved. With the APR you can quickly see how expensive a loan really is.
Read the fine print in your loan agreement
As soon as you have received one or several of your loan offers if you have followed Tip 3, we recommend that you read the contracts carefully. Yes, this is neither easy nor quick, but often there is important information hidden in the small print that should not be underestimated. It may even be that the small print has a significant influence on your decision. You enter into an important financial partnership with the bank. It is important that you know the conditions, otherwise it can be expensive. Therefore, read the loan agreement carefully before signing it.
Don’t let a rejection get you down – just keep going!
Every bank evaluates its customers differently. If a loan provider rejects you, don’t let it get you down. The evaluation criteria are very different and just because you are rejected by a company does not mean that the next bank will reject you. Simply apply for your loan at the nearest loan provider. Fortunately, this is quick and you will soon receive positive feedback. The motto here is: don’t give up!
Pay back your loan on time
To avoid further costs and fees, pay your loan back on time. Sounds simple but is effective. The loan providers have hefty surcharges if you need an extension of the loan. Although this is often possible, simply call your bank early on and describe your situation. In some cases, the credit providers are also accommodating if you are honest and take the initiative early. A phone call is quick and can save you a lot of worries (and costs).
The best thing to do is make a budget when you take out the loan so that you know exactly how much money is now available to you, including the repayment of the loan installments. This way you can avoid unpleasant surprises when the term of the loan comes to an end. Another important point is that you only borrow as much money as you need. This means that your budget is not overstretched and repayment is easier.