There are many situations in life where money is urgently needed. Be it for the new car, a new home furnishings or also for an urgent repair. An installment loan offers the opportunity to make urgent purchases at short notice and then repay the respective amount in monthly installments. The supply of cheap credit has grown significantly in recent years, mainly due to the increased number of direct banks. In order to find the loan with the best conditions , a installment loan comparison is worthwhile.
Advantages of the installment loan
Due to the constant monthly installments, the financial burdens for borrowers are transparent and predictable . As a rule, a term between 12 and 96 monthly installments can be selected. Some banks also offer loans with up to 120 monthly installments . In this way, the amount of the monthly installments can be adjusted very precisely to the financial budget. In addition, an installment loan is much cheaper than, for example, a disposition loan .
Who can get an installment loan?
To apply for an installment loan, you have to be at least 18 years old and live in the the country. A certain credit rating is also required. This includes a sufficient income on the one hand and a credit information without negative entries on the other. The amount of income required depends on the desired loan amount. There are also a few points that vary from bank to bank.
For example, some banks do not grant loans to self-employed or self-employed people. Anyone who needs an installment loan as a self-employed person should therefore pay close attention to this point when making an installment loan comparison. Depending on the amount of the loan and the existing creditworthiness, the bank can also request the deposit of a security or the inclusion of a second borrower in the loan agreement.
The installment loan comparison on the Internet
If you compare loans online, you have the great advantage that the offers of the many direct banks are also compared. These often offer the more favorable conditions because there is no cost-intensive branch network. In the meantime, many branch banks are also offering their loans at a lower price than when closing in a branch. Consumers can carry out the online comparison around the clock and comfortably from home.
To do this, it is sufficient to enter the required loan amount and the desired term in the loan calculator. On the basis of this data, the loan calculator searches for the cheapest offers on a daily basis. After the installment loan comparison, it is possible to go directly to the website of the selected bank to apply for the installment loan.
Compare loan interest rates correctly
One of the most important points in an installment loan comparison is of course interest . The amount of interest has a significant share in the cost of an installment loan. If you carry out an installment loan comparison, you should pay particular attention to the effective annual interest rate. In addition to the actual interest, this already includes the processing fees. Depending on the credit institution, the APR depends on various factors such as loan amount or term. Creditworthiness can also play a role in the amount of interest. One recognizes interest rates dependent on creditworthiness by the fact that an interest margin is given in an installment loan comparison.
The better a borrower’s credit rating, the cheaper the interest rate will be. However, with an average income there is little chance of receiving the cheapest interest rate. If you want to be on the safe side with regard to the interest rate, you should therefore choose an interest rate that is independent of creditworthiness .