When it comes to a bigger investment, many people use a loan, which is understandable, because after all, the required sum itself does not have to be paid immediately out of pocket and can be repaid in smaller steps. I have some tips for you to help you find a loan. However, before looking for a suitable loan offer, it is highly advisable to first make a financial overview.
Credit comparisons save time when searching
There are a variety of providers that you can use to compare banks’ credit offers. Handling is usually very easy. You enter your desired loan amount, select the term and you get an overview. So you get a rough idea about what conditions you have to expect, of course, these can change when you make a loan request and provides information on your credit rating. One of the best known providers of such comparisons is smava.de, about which I have already reported many times.
The inquiry at the own house bank
You should not leave any stone unturned by a demand from your house bank, sometimes this can make you an attractive offer as a customer, because after all, the bank does not want you to take out a loan from the competition. However, you should still get more credit from other banks.
When the money is needed quickly
If you need a loan within a very short time, there is the possibility of a short-term loan, these are called because of their quick payout synonymous as lightning loans, sometimes the money can even be paid within 24 hours. I have already reported about some providers like Express Cash or Wixcash. However, with this type of credit, the costs must be taken into account, which can be significantly higher than a favorable installment loan, the term of 1 to 2 months is very short, but the loan can be paid out quickly.
Avoid overdrawing the account
Although it is very easy to overdraw his account and depending on the Dispo framework can also withdraw more money, but this option is very expensive, often the overdraft interest is over 10%. A cheap installment loan is often the better choice, so the loan can be repaid in small monthly installments.
Are there alternatives to the bank?
Among other things, there is the possibility of borrowing the money directly from private individuals. This form is called P2P loans. The principle behind it is very simple. On credit marketplaces such as Auxcash or Credco, a credit project is created. This is a kind of presentation where you describe what the money is needed for or what credit standing you can currently have. When this loan project is published on the marketplace, investors have the opportunity to invest in their own loan. When the money is paid out, you pay back the loan month after month and at the same time you pay a return to investors.
It is also possible to borrow money from a pawn shop. Here you only need a valuable object, which you can lend. An advantage of this is that you get paid the money immediately and also no credit information to be queried, because only the value of the deposit counts.
Is a loan necessary at all?
If the investment can be delayed, this consideration is worthwhile. You do not have to forgo a loan on a larger investment, but you can wait a while and use that time to save some of the money, which reduces the loan amount, shortens the runtime, and reduces interest rates.
When should one renounce a loan?
A loan should be waived if it could become a burden. Even if the loan is approved, one should again very precisely calculate how much this burdened the own financial scope. What good is a loan if its repayment becomes a burden and much of the monthly budget needs to be used for it.