It is crucial to compare loans when you want to incur debt. In order for you to find the cheapest personal loan that exactly matches your needs, read on here at loanguide.one where I will reveal how to do it.
I do loan comparison in the following markets:
Borrow money online
Online you can borrow money with low interest rates and decent terms. You can also pool your loans and credits, and you can often reduce your monthly costs. You do not need to provide any security when you borrow money online and you can always save the start-up fee on most loans. Apply with NemID, BankID or the ID used in the country where you reside and get an answer immediately!
Borrow money with low interest rates
When you are considering taking out a loan, there are several things you can do to increase your chances of getting as low an interest rate as possible. Always remember that what is a low interest rate is relative to your own circumstances. With the advice below, I will help you optimize your application and thus your chances of getting as low an interest rate as possible. These tips also increase your chances of lowering interest rates in the future.
Borrow money cheaply with co-applicant
If you need to borrow a large amount, it may be a good idea to have a co-applicant. A co-applicant can add increased ability to pay, which from the lender’s perspective is seen as extra security. This often results in better terms for you as a borrower both in terms of how much money can be borrowed and at what interest rate.
Compare loan offers
There are an incredible number of online loans, so it is important that you compare the different consumer loans before you just borrow money. By comparing loans through a comparison service, you can find the cheapest loan that suits you best. In addition, you let loan providers compete for you as a customer, which can push interest rates further down.
Clean up your finances if you want to borrow money cheaply
Before taking out a loan or comparing interest rates and fees on a comparison service, there are a few simple tasks you can do to maximize your chances of getting as low an interest rate as possible:
- Quit unused credits if possible. Each credit is visible in a credit report, and many credits – even unutilized – can affect your credit rating.
- Cancel subscriptions you can do without. These can include streaming services, magazines or beauty boxes that are regularly sent to your home. Is there anything you can do without?
- Clean the storage. Selling gadgets you do not use can make a difference in your wallet.
- Beware of small expenses. Every cup of coffee or lunch in town or other minor expenses you can save is a plus for your wallet. Remember that small expenses can easily become a large sum in a year.
Debt consolidation loan
Gather your loans and credits in one place. If it is time for you to take out a loan, it may be worth trying to apply for a so-called debt consolidation loan, which means in practice that your existing debt is included in the new loan. Loan providers tend to give lower interest rates the larger your loan is.
Choose the right loan type
There are mainly two types of loans; It requires collateral in the form of a cash payment, guarantor or mortgage, which is common with large loans such as mortgage loans and car loans. Then there are loans that do not require collateral. Below we review the most common types of loans within these categories.
Personal loans, also called unsecured loans or quick loans, this type of loan requires no security and can be used to finance, among other things, renovations, buying a car or paying off a mortgage. The great advantages of private loans are that you can quickly get the loan repaid and use the money for whatever you want.
Quick loans have got their name because the loan is issued fast and there are several types of quick loans, among the names are quick loans, SMS loans and microloans. The good thing about fast loans is that they apply to smaller loan amounts, shorter maturities and higher interest rates than with a regular private loan.
Interest-free loans have no interest rate, this type of loan usually has other expensive fees instead, such as notice and start-up fees which means the effective interest rate is high. Common to the interest-free loans is that many lenders charge very high fees if you fail to repay the loan on time.
Credit card is a payment card where the payment is postponed for an agreed credit period, and in this way the money is lent out for a period. The first 30-60 days of a credit purchase are interest free, but card fees, billing fees and other fees are added as an additional cost to have a credit card. Once the interest-free credit is over, interest costs are added with a high effective interest rate and a long repayment period relative to the credit amount, resulting in you getting very high costs.
Mortgage loan – Mortgages are the most common type of loan in this category. A mortgage loan means that you borrow money to buy a home and provide the house as security and deposit a percentage in cash.
Car loan – The car is another common form of loan, which means that you provide the car as security and thus the ownership of the vehicle until you have paid the full amount. For this loan you also need a cash payout.
Choose loan terms that suit you
When considering taking out a loan, it is normal to focus on how much you can borrow, but it is also important to keep track of what the loan will cost you. The interest rate is the cost of the loan and is assessed individually based on your financial situation. Remember to distinguish between interest rates and APR. Interest is the actual cost of a private loan, and the APR includes the bank’s other fees and administration costs. It is APR that reveals what you have to pay. According to the Credit Information Act, the lender is obliged to disclose APR on all loans.
In addition to the interest costs, you also pay installments, which is often called installments. When you pay installments, the debt on the loan is written down (read more in the loan agreement). A longer repayment period results in a lower monthly payment, but a higher total cost because the interest rate ticks for a longer period. If you choose a shorter repayment period instead, you reduce interest costs but get a higher monthly benefit.
The longest repayment period on unsecured loans is 10 years, but in some countries there is a free repayment right, which means that you can always repay your loan faster than the repayment period requires.
The two most common forms of repayment on secured loans are a fixed-rate loan and a fixed rate loan with a 10-year grace period.
Loans with a grace period are suitable for you who want a low monthly payment for the first 10 years. This could be because you would rather pay off your home loan in the bank, which is a somewhat more expensive loan.
If you need to borrow money fast
There are many different reasons why you need to borrow money fast. This can be an unforeseen expense due to something that has broken down, e.g. the car. It could also be that you want to buy a home or need money for something completely different.
Before taking out a loan, remember that you need to be able to repay the loan. Borrowing to pay the bills on your existing debt is not a profitable strategy. Borrow only if you can afford it and if you do not feel able to resolve the situation on your own, then get help for a healthy economy, it is not good to build up debt you can not manage.
Even if you need to get money fast – do not forget to compare your loan options! Comparing loans only takes a few minutes and allows you to find the cheapest loan that suits your needs.