Everyone is sometimes in the situation that he has to compare credits. This can be for small amounts, such as the purchase of a new bicycle, but also for very large purchases, such as a house. Most loans are suitable for specific purchases. A mortgage is used exclusively for real estate financing. Other specific loans are car loans, renovation loans, motorcycle loans, energy loans and renovation loans. There are also non-specific loans, the personal loans. And you can also regroup your loans. You can compare loans for each category of loans.
Preparing to compare credits
Comparing credits is roughly the same for each type of loan. The purpose of comparing is to search for a loan that is the most beneficial for you. This can be for anyone with another loan, because how expensive or cheap a loan is depends on the personal circumstances, related to the amount of the amount you plan to borrow. Therefore, you can only compare loans if you already have an idea of how much money you want to borrow. Therefore, always first make a good estimate of the amount of money you want to borrow. Only then can you compare credits.
Who is credit comparison intended for?
It is not necessary to enter personal data for credit comparison. The comparison sites are accessible to everyone. That is why anyone who wants to can compare credits to their heart's content. There are also no costs involved. This offers unprecedented possibilities. With comparing credits you get the answer to the question which lender is the cheapest. In addition, comparing provides a good insight into the repayment period that is most attractive to you.
How does credit compare work?
Many sites that compare loans show the installment amounts, the APR and the total amount of interest that must be paid for a loan in an overview of a certain type of loan. You cannot enter data at these credit comparison sites yourself, such as the amount you want to borrow. So these sites don't seem that useful, but they are useful. Because such an overview with lenders gives a good impression of which providers are usually cheap and which are not. The logical next step is to go to the site of such a provider.
Compare tailored loans
You compare credits to size on the basis of a simulation. The first step you should do is indicate what type of loan you are looking for. This is important because the interest rates for certain types of loans differ significantly from others. After you have found the type of loan, you can enter an amount for which you want to take out a credit. The simulation answers a number of lenders with a proposal. This proposal shows the installment amount, the total interest that you have to pay and the APR. You can often immediately apply for a credit from a simulation.
The pros and cons of a personal loan
The personal loan is one of the most popular loans. The biggest advantage of such a loan is that you do not have to tell the bank what you want to use the money for. The bank only wants certainty that you can pay the repayment of such a loan. A disadvantage of a personal loan is that it is very expensive compared to specific loans. Sometimes you pay twice as high interest. When comparing loans, make sure that you take a personal loan that does not put too heavy a burden on your income.
Finding a personal loan without a simulator
It is of course best if you can find a personal loan with a simulator on a credit comparison site. However, not all providers place a simulator on a credit comparison site. To find the details of the loans with such a provider, you must go to the site of the relevant provider. Usually there is a simulator there. In that case, comparing takes a little more effort, but it is more than worth it to do so. You will enjoy this for the entire term of the loan.
Choose the right type of loan
It is important that you look for the right type of loan when comparing credit. Those who want to finance a new motorcycle or car with a loan can do so better with a car loan or a motorcycle loan. If you use a personal loan to finance a car, that is not wise. Because the interest rate of a car loan is much more favorable than that of a personal loan. This has to do with the fact that the car can serve as collateral with a car loan. As a result, a lender can have the car seized in the event of non-payment. There is no collateral with a personal loan. That is why you have to pay more interest for that.
Is comparing credits free?
As a consumer you don't have to pay anything for comparing credits. The comparison sites are paid when consumers click through to a lender. A condition is that the consumer will actually borrow money from that lender. It is a misunderstanding that the costs of clicking through to a lender on a comparison site are directly passed on to the consumer. The offer shown in the credit comparison is exactly the same as you can later accept on the site of the lender.
Low interest rates or repayment term?
The great thing about comparing loans is that you gain insight into the interest rates and the repayment period. This is clearly visible, especially with car loans. Those in need of a car loan of $ 30,000 can choose between repayment terms ranging from 12 to 60 months. With a term of 12 months you pay a high repayment, but the interest costs are the lowest. With a term of 60 months you pay a much lower installment amount, but the total interest costs are much higher. Yet when comparing credits, it cannot be concluded that a 12-month car loan is much cheaper. That depends on the personal situation of the applicant.
Compare credits based on repayment term
A loan must be repaid in subsequent years. If a loan is paid off quickly, it costs less in interest than if you take it for a longer period. However, you should always choose a repayment term that suits your income. You know for sure that you can stick to the repayment scheme. The term of a loan is legally bound to an upper and lower limit. Those limits depend on the amount borrowed. When comparing credits with a simulator, you can play with the terms and the loan amounts until you have found a suitable combination for you.
How much money can you borrow?
When comparing credits with a simulator, you can enter all possible amounts as loan amount. The results of these calculations do not take your personal circumstances into account. As soon as you actually apply for the loan, the lender will first investigate you. It is also checked whether you already have loans and how much you can repay based on your income. The lender will then make you a proposal. There is a chance that the maximum loan amount is a lot lower than you entered when comparing credits.
Compare conclusion credits
Comparing credits is a useful tool to get an idea of the amounts you can possibly borrow. However, it is an indication. Only when the lender has assessed your personal situation will he come up with a definitive offer for a loan. It's up to you whether to agree or not. No rights can be derived from comparing credits.