Comparing loans can save you a lot of money. Comparing loans seems very easy. You choose the provider with the lowest interest rate and you are done. In part you are on the right track, but there are more things you should take into account when comparing loans. Of course we would like to tell you what you should pay attention to. Borrowing money must of course be cheap money.
Comparing loans, where do you start?
|Personal loan||Revolving credit||Mini loan|
|From 4.1%||From 4.5%||Borrow a maximum of $ 1500|
|Fixed interest||variable interest||No BKR testing|
|from 21 to 69 years old||from 21 to 69 years old||from 21 to 70 years old|
|Payment within 2 days||Payment within 2 days||Payment within 24 hours|
|Apply for a personal loan||Apply for revolving credit||Apply for a mini loan|
As already indicated, it is of course important to find out where you can get the lowest interest rate. It sounds tedious, but it takes more work than just looking up a comparison website and comparing interest rates. Banks work with a scoring principle. Your loan application receives a number of points. The more points your application scores, the lower the interest you can get. So don’t be fooled by low interest rates.
The best thing to do is request multiple quotes. Requesting a loan offer is always free of charge and without obligation. The advantage of requesting actual quotes is that you really know where you stand. The disadvantage is of course that the lender or credit intermediary will approach you. If you are clear in your communication, you can play the providers against each other. Indicate where you received the lowest interest and how low this interest is. This can bring you a lot of benefit.
Compare loans on interest
As already indicated, comparing loans on interest is not as simple as you would imagine. It is therefore important to deal with this properly. Another extra point of attention is comparing interest with a revolving credit. A revolving credit has a variable interest rate. If you have taken out a revolving credit, it is important to continue to follow this interest. If the bank where you took out your revolving credit increases the interest, it is important that you immediately check whether you can transfer your loan cheaper elsewhere.
Compare loans by monthly period
In practice, comparing loans on a monthly basis still happens a lot. Many consumers like a low monthly period. However, comparing loans is not the best method on a monthly basis. The loan with the lowest monthly term usually has the highest total costs for the loan, because you spread the term, as it were. This is by far the most expensive form of borrowing money.
From which providers do you want to compare loans?
Many customers still borrow money from their “own bank”. The bank where the payment account also runs. The disadvantage is that this is one of the more expensive forms of borrowing money. But to compare loans, we can imagine that you also request a loan offer there. However, we advise you to do your loan comparison as objectively as possible. The cheapest loan providers at the moment include Lite Lender, (only works through intermediaries) or Across Lender and Spin Lender. It may be good to also request a quote from these banks.
Compare forms of credit
Before you compare loans, you should actually compare credit forms. A personal loan is very different from a revolving credit, it has very different characteristics. When comparing loans, we therefore recommend that you first choose the correct form of credit before comparing loans. Did you know that advice about borrowing money, and therefore also credit forms, is completely free?