Which loan is the best?
Which loan is suitable for me, how can I find the right loan for me?
There are many situations where it may be useful to take out a loan. This is even more so when interest rates – as at present – are at a historic low. But the variety of different offers often makes it difficult for consumers to find the right loan for their own purposes. Here is a small overview of banks, credit intermediaries and financial service providers.
What types of loans are there?
If you want to find the right loan for a specific purpose, you should first get an overview of the different types of loans and their advantages and disadvantages. Because, in principle, there is not the right or wrong credit par excellence, but different types of credit, each of which is suitable for very specific situations. In any case, you should not be impressed by terms that may be used in advertising. Instead, get more clarity about what the specific loan terms look like and what the implications are for you. This is particularly important because when you take up a loan, you usually commit yourself to several years, and within that time period seemingly small differences, such as interest rates, can add up to considerable three- or four-figure amounts.
Short-term liquidity shortage or long-term financing
In order to find the right loan for you, you should first clarify what your financing needs are and for what period of time you need the sum in question. If it is merely a matter of bridging a liquidity shortage with a three-digit or low four-digit euro amount, then a disposition credit in the current account can be the right solution. Although this is relatively expensive, it can – provided it has been granted – be used at any time without further formalities and be repaid. If you are less interested in the high level of flexibility, but rather in the long-term financing of an investment or a private purchase, the “Dispo” is not suitable for that alone because of the high costs.
Installment loan to finance acquisitions
Therefore, if you are about to make a major purchase or if you are in financial trouble, you should opt for a installment loan that you pay off with fixed monthly repayments. This is usually a so-called annuity loan with constant installments, which initially contain a higher interest component and a lower repayment installment. The more of the loan amount has already been repaid, the lower the interest that accrues. As a result, the repayment share of the current installments is gradually increasing, which is why the remaining debt decreases more and more rapidly as the repayment term increases. The credit terms that the bank offers depend on the individual creditworthiness. With an installment loan comparison, you can roughly calculate their installments and repayment term.
With the so-called credit comparison calculators, you compare loan offers from various banks, financial institutions and other lenders.
Mortgage loans for real estate purchases – and other types of loans
Plan the purchase of home ownership or real estate for investment, is usually a mortgage loan financing the first choice. There are different conditions, but usually the financed property itself serves as collateral for the loan. Some types of loans are also reserved for special financing situations, such as student loans. If you need a non-binding financing offer for a property, take a look at the following article:
Loan application rejected by the bank – borrow money from private lenders
Your loan application was rejected by the bank? The reason was a bad credit rating. In an online loan marketplace, you can quickly and easily borrow the money you need. The loan platform trucredit offers not only personal loans but also loans for the self-employed, freelancers or retirees. People with so-called hard negative characteristics (affidavit, arrest warrant, etc.) have no chance of a personal loan. With good credit, however, you save money in the form of interest.
In this way, you can borrow money between 1,000 – 25,000 euros. The terms can be set individually between 12, 24, 36, 48 and 60 months. Your private loan is funded by private and institutional investors. You can also borrow money from friends, relatives or friends via the loan exchange. This saves you from direct money lending among friends or relatives any trouble or dispute, in case of any financial difficulties. To borrow money from private people, sign up for free at trucredit.
Afterwards your credit rating will be determined. This means that the individual trucredit score is calculated. This takes into account the individual application and behavioral data, the credit bureau score, the Creditreform credit traffic light and the available collateral. In order to find enough lenders for your project, you have to convince private money lenders with your project and your credit rating. In order for your loan request to be fulfilled quickly, you should describe in detail your current personal situation and the reason for the financing request in the loan project. In order to gain more confidence as a borrower, it is also recommended to upload a photo. When the full amount has come together through the money lenders, you will receive the loan agreement from trucredit.