The low interest rate policy of the ECB Bank has led to a significant reduction in consumer credit. To make sure that customers actually choose a beneficial loan for, for example, a driver’s license financing, they should use a meaningful bank loan comparison. With a little background, it is not difficult to properly understand and use this juxtaposition of different loan alternatives. In particular, the following comparison criteria should be taken into account if you want to use a loan comparison of banks for the selection of a loan.
The selection of lenders
For a bank loan comparison to do its job optimally and actually help consumers find a suitable loan, they need to consider as many potential lenders as possible. In addition to on-site banks and savings banks, he should also consider online banks from home and abroad who handle their lending via the Internet. In addition, it makes sense to include private investors in a credit comparison. In recent years, loans from private individuals have gained more and more popularity. They too are provided on the Internet via dedicated portals and have many advantages for both lenders and borrowers. In particular, customers with poor credit ratings also have a real chance of getting a loan.
The effective interest rate
The effective interest rate is by far the most important criterion for a bank credit comparison. This interest rate calculated using a special method takes into account all the important influencing factors. In addition to the nominal interest rate, a discount and the various dates of interest and principal payments may also be included in the calculation. Any closing or account management fees which may be incurred will also be appropriately included in the calculation of the effective interest rate. In this way, the effective interest rate makes loans from different lenders with a different layout of the payment and repayment modalities comparable.
The experiences other consumers
Reports from clients who have already applied for a loan from the banks are also very useful. In a credit comparison of banks, for example, they provide information about the quality of service and the speed of processing loan applications. The approval rate is also of great importance in a credit comparison of banks. If it is very low, it is advisable to forego the submission of a loan application to the relevant lender from the outset.