Since the European Central Bank lowered the key interest rate to a historic low as a result of the euro crisis, private consumers can borrow extremely cheaply. In any case, however, customers should be aware of the following considerations before deciding on a loan offer.
Tip 1: Only take a loan if repayment is secured
The currently very low interest rates should not induce anyone to sign a loan agreement without thinking. Regardless of the credit rating of the bank or savings bank, it is important that the client can handle the loan repayment without any problems. A review of your own financial situation makes sense before you take out a loan. To do this, you compare the monthly income and expenditure to determine the financial scope for the repayment of a loan. This is especially important for a low-income loan.
Tip 2: Check different types of loans
In addition to the usual installment loan, which is also referred to as consumer credit, there are other attractive forms of loans. Anyone who wants to take out a loan should check whether a car loan or a securities loan is eligible for him. For these types of loans, the borrower provides collateral. In this way, the bank takes lower risks and often lends the loans at more favorable terms. Even as a self-employed loan, these loans are great because they require less credit. For some years now, it has also been possible for clients to take out a loan privately. Special Internet forums provide these innovative loans between private lenders and borrowers. Here, consumers also have a chance to get a loan that banks and savings banks refuse a loan. However, caution should be exercised when paying interest free loans to friends or relatives.
Tip 3: Compare credit terms
If you want to take out a loan, you should inform yourself in advance about the different alternatives and their conditions. In particular, it depends on the effective interest rate, the term and the service quality of the lender. Recommended credit comparisons, as they are presented on reputable finance portals on the Internet, all consider these criteria. Here, too, customer experiences with the respective lenders provide useful information that helps to make an informed selection decision.