Borrowed money is expensive, so it is worth comparing the installment loan conditions, because high savings are possible.
Comparing the installment loan terms is a worthwhile effort. With a loan amount of just 10,000 USD and a term of 48 months, the difference in interest rates can quickly amount to 1,000 USD.
It is best to use a loan calculator, in which the desired term and the amount of the rate are entered. As a result, the loan seeker gets an overview of installment loan offers with the most favorable terms available on the German market.
With the installment loan conditions, not only the interest is important
If the conditions of different loan offers are compared with each other, it is not only the interest rate that matters. In the case of offers with interest rates dependent on creditworthiness, the consumer must first have a personal offer drawn up before he finds out which interest rate applies to him.
In addition, the ancillary credit costs must be taken into account. Installment loans without processing fees are preferable to those with processing fees. Another cost factor is residual debt insurance. The costs for this are not included in the annual percentage rate, but can make the loan more expensive. The credit terms should therefore always be viewed very carefully, only those who compare and calculate exactly will get a loan that is not that expensive. When it comes to choosing the term, it must be taken into account that long-term loans are generally more expensive than those with a short term. Here, the banks require a risk premium because the credit default risk increases disproportionately as the term increases.
The installment loan with fixed interest
Among the loan offers there are also some that are offered with the so-called fixed interest rate. The personal creditworthiness of the borrower is then irrelevant to the amount of interest. At first glance, the conditions for loans with fixed interest rates are often higher than for interest rates dependent on creditworthiness, because the advertised interest rate is actually granted if the customer is creditworthy. It is therefore worthwhile for every borrower to take the time to compare the offers.