You want to make urgent replacements in the household or fulfill a long-cherished wish? If you do not have the money yourself, then consumer credit is just the solution for you. If you rely on online offers, you can also save a lot of money. Our credit comparison helps you to quickly and reliably find the right consumer loan with the lowest possible interest rates. What exactly that is and what advantages the comparison option offers, we will now show you a little more detail.
What is a consumer credit exactly?
A consumer loan is basically a normal installment loan. They apply for the loan as a borrower and pay it off over the term in constant monthly installments. The only special feature lies in the intended use, because consumer loans are more likely to be taken up for consumer goods needed soon. Therefore, in most cases, the loan sums are lower than car loans, debt rescheduling or loans needed for large purchases. The term consumer credit is therefore not very sharply separated from the normal installment loan.
You can set the following characteristics:
- Fixed term (often between 12 and 84 months)
- Consistent loan installment (depending on the loan amount, the term and the interest rate)
- Cheap interest
What should be considered with a consumer loan?
If you are interested in a consumer loan, you probably want to know the key decision-making criteria for choosing a loan. In this way, you can keep the interest costs low and also take advantage of certain advantages in the benefits. If they fit your personal situation, you have chosen the perfect consumer credit. The following decision criteria are very important:
1. The amount of the APR
If you want to compare loans, you should always use the APR as a benchmark. In contrast to the nominal interest rate (today’s compounded interest rate), this contains all important cost components. If a bank calculates closing fees or agency fees, these are already included in the annual percentage rate. This is determined by §6 of the Price Indication Regulation (PangV). In addition, banks are legally compelled to indicate the annual percentage rate of charge. Our credit comparison also uses this possibility. What savings potential is possible, should show the following example calculation:
Table 1: Example calculation for the possible savings through a credit comparison, the values are fictitious and may differ
|Consumer credit (rather expensive)||Consumer credit (rather cheap)|
|loan amount||5000,00 €||5000,00 €|
|Effective interest rate||6.99% pa||3.49% pa|
|running time||3 years||3 years|
|Repayment rate (per month)||153.87 euros||146.37 euros|
|Interest costs (term)||539.43 euros||269.23 euros|
|Cost difference||354.54 €|
So if you decide to compare different consumer loans, you can make a significant savings even with a smaller consumer credit.
2. Creditworthiness of interest
Most banks now grant consumer loans based on their credit rating (we offer fixed-interest loans here ). The amount of interest depends on the creditworthiness of the borrower. This is the reason for the fact that the loan offers are often given an interest margin (eg from 3.99 to 8.99% per annum). Top-rated borrowers in this example receive a 3.99% interest rate consumer loan, while those with a more moderate credit rating pay up to 8.99% annually. However, there are several aspects to consider about these interest margins:
- Lock interest rates: Banks sometimes borrow their loans with lock interest rates. These are set very low, but then apply only with excellent credit rating (very high income, possibly even civil servant status). A good example would be an interest margin of 1.99 – 10.99% interest. The 1.99% is hardly achievable for most borrowers, however, the given minimum interest rate ensures an increased interest of the customers.
- The uncertain middle: Within a range of interest, you do not recognize as a borrower, which interest rate applies at average credit rating. For example, a bank could communicate an interest rate spread of 1.99% – 10.99% and still set the middle at 7.99% per year.
Both problems can be avoided by checking the so-called representative example. According to §6a PangV, banks are obliged to provide a representative interest rate example, whereby the interest rate for an average of two-thirds of all customer inquiries must be achievable. Thus, the following two offers could be aptly evaluated very quickly:
Table 2: Impact of credit dependence on interest
|Offer A||Offer B|
|interest margin||1.99 – 10.99%||1.99 – 10.99%|
|Interest rate rep. example||4.99%||7.99%|
As a borrower with a normal credit rating, you would probably be more likely to use Offer A in this case. The chance of a lower interest rate would have increased significantly.
If you have a below-average credit rating, a consumer loan with interest-free interest rates may be of interest to you. Here, an interest rate applies to all borrowers, whereby a certain minimum credit rating is required. This usually includes a faultless private credit information and an income well above the seizure exemption limits.
3. Special features in the choice of credit
While the first two decision criteria relate to costs, you should, of course, also keep an eye on other features. This includes:
- Free special repayments: A faster repayment through special repayments ensures faster debt freedom and savings in interest rates. For this reason, many banks charge fees in the form of prepayment penalties when a loan is repaid early. If you can already plan with additional money in the future, a consumer loan with free special repayments is therefore quite interesting.
- Fast payouts: Some replacement purchases can not be postponed because the items (eg refrigerator or car repair) are urgently needed. In such cases, you should rely on consumer loans with fully digital application range. Here you can complete all the steps online and digitally sign the loan agreement. By saving time because of the postal service you will get the required money already 24-48 hours later.
- Waiting period: A certain grace period can be quite interesting if it looks financially difficult at the time of borrowing. This is the possibility to wait 1-3 months to repay the first installment.
Depending on your personal needs, different features may be important. For this reason, it is important to know their wishes and requirements for a consumer credit. In this way, it is easy to find the right offer.
Find your cheap Manucrediter consumer loan
Consumer loans are the typical everyday help: You want to buy something specific or fulfill a wish and currently do not even have the sufficient financial resources. Fortunately, such loans can be conveniently applied for online today and you can save a lot of money by making comparisons. Take advantage of these benefits, check out various loans and choose your tailor-made and affordable consumer credit at the end!