Cheaper to compare credit with credit

Cheaper to compare credit with credit

The next vacation, the new car, the renovation of the apartment – many Austrians are now financing such projects with loans. Interest rates are currently extremely cheap for loans, while the low savings rates promise little return. So now is an ideal time to invest. But how can you find a suitable – and above all cheap – loan in the jungle of loan offers? A credit comparison can help. With this online tool you can quickly get an overview of the existing loan offer. Immediately you can see where the cheapest interest is and which banks have offers according to the desired framework.

It’s so easy to compare credit

Unlike a loan calculator, a loan comparison is used to filter offers and – as the name suggests – compare them. To get meaningful results, not only some information is necessary, but you should also read it correctly. In general, you can easily find a suitable loan in three small steps.

Step 1: Set the credit line

Step 1: Set the credit line

First, information about the desired loan is given. So how much money should be borrowed (loan amount), the desired duration of the loan contract (term) and the intended purpose. These three details are sufficient to find suitable installment loans and carry out the comparison.

Step 2: Read the result

After pressing the calculate button, results are listed based on the information provided. Starting with the provider with the best live test grade. This rating system is based on the interest rate of the representative example. This is important because it enables a broader assessment. The representative example is not only a mandatory requirement for loan offers, it also gives interested parties an insight into bank lending practice. At least two thirds of bank customers receive the lending rate of the representative example – or a better one. So the chances are good for more than half of the borrowers to be able to conclude at such an interest rate. This evaluation is made easier with the live test so that interested parties do not always have to read the fine print.

In addition to the live test grade, the respective provider and the possible interest for the desired loan are then listed. It is also possible to mention an interest margin. This means that the final borrowing rate depends on the applicant’s income and can only be determined by checking creditworthiness and collateral.

In order to make it easier for users of the credit comparison to plan their finances, the expected monthly credit rate is also given. This makes it easy to assess whether you can afford the desired loan at all. If this is not the case, it is worth reducing the loan amount or changing the term, this can have a positive impact on the results.

The loan comparison can be carried out as often as required. In this way, uncertainties regarding the loan term or the costs incurred can also be eliminated. In addition to the rate, additional costs may apply. These are mentioned in the representative example under the provider details.

Step 3: make a credit request

If one of the offers corresponds to your own wishes, you can start the application directly from the loan comparison. Simply click the “Go to provider” button and you will be directed straight to the bank. There you can then fill out an application form online. If you want to apply for a loan, the bank needs some information, but this is done quickly. In most cases, less than ten minutes are necessary and the individual loan contract is sent to you within a very short time.

Other facts worth knowing about loans

Other facts worth knowing about loans

Do you really not need more information for a good loan than that from a credit comparison? Yes and no. A credit comparison helps to clarify the most important question, namely: How much does the loan cost? The final answer to this can only be given by the provider, because aspects such as processing fees and the creditworthiness of the borrower must be taken into account, but a very close assessment of the costs involved can still be made.

In addition, there are of course other aspects that are important for a feel-good loan, because after all, the borrower often needs to pay off the loan for a few years. Therefore, the respective bank conditions should be checked again carefully before signing a loan application. Some interesting points that should be noted and that are important for the choice of loan are the following.

Choose correct use

Credit is not the same as credit. Corresponding to what is supposed to happen with the money, special loans can provide better conditions. With a car loan, used and new cars can be financed. The purchased car serves as security and often ensures better interest rates. For building loans that are used for the purchase or construction of a property, other requirements apply. The high sums required for such a project require adjustments in the course of the loan, as well as in the collateral. Mortgages and guarantees primarily play a role in securing real estate financing and are intended to absorb the risk if a borrower becomes insolvent.

Special repayments, installment breaks, repayment adjustments

The two most relevant parameters for a loan are interest and repayment. The interest rate can best be influenced by the choice of provider. The easiest way to find suitable offers is to use a corresponding credit comparison, Austria is no exception. With regard to the repayment (i.e. the repayment of the loan and its conditions), however, one should look at the fine print or the advertising promises of the banks. The more flexible the change options are, the better.

Important factors are the option of free special repayments. This makes it possible to easily flow unexpected cash surpluses, for example from an inheritance, into the loan. In the case of long-term money blessings, it is advantageous if a free rate adjustment is possible and the loan can be repaid faster. This is also helpful in the event of financial bottlenecks, as is the option to pause two installments. These extras are desirable for a good loan.

One loan – many names

Finally, a note on the different terms with which loans are often used. For people who are less involved in financing – after all, how often do you need a loan? – it is often difficult to find your way through the conceptual jungle. So here is a brief overview. Most terms refer to the same type of loan, namely the installment loan, popularly simply credit.

Another name for this is consumer credit. In order to advertise the rapid availability of loans, the term instant loan is also often used in advertising promises. However, the word personal loans is often misused. In the strict sense, it means a loan in which private individuals grant the loan. However, the term is used time and again for a loan that is taken up by private individuals, quasi as a delimitation to the corporate loan.

Beware of dubious offers

Beware of dubious offers

You don’t always get the credit you want. Banks carefully check who they lend money to, because they rely on borrowers to pay their installments. It can also happen that a loan request is rejected. Some would like to bypass the banks’ checks, but there are no reputable providers who do not require proof of creditworthiness. Should you come across offers such as “credit without KSV” or similar, you should immediately become suspicious.

If you google, for example, “Credit Comparison Austria”, thousands of brokerage sites and loan providers are listed as results. In order to prevent falling for dubious offers, one should pay close attention to the promises and check the providers if necessary. Reputable providers will not only attach importance to a secure connection, but will also transparently point out conditions, company headquarters and the type of data query. A credit check, for example at KSV, is definitely a sign of seriousness.

In the credit comparison of Binary Lender there are therefore only verified providers from established banks. The forwarding takes place directly to the banks’ websites.