To borrow money, three factors are important: the purpose for which you borrow, the term of the loan and the lowest possible interest and costs. Let’s work that out for you. First you start from what you are going to do with the credit. This can for example be a new car or a refrigerator, but also buy or repair a home. As you can see there are quite a few differences between the goals and therefore also the amount that you are going to borrow. And of course you are looking for a cheap loan, the cheapest there is.
Take out a car loan
For expenses such as a car, you generally take out a car loan. This is a personal loan for a somewhat higher amount – soon a few thousand USD. The lender needs some information, but usually the money is in your account within 2 weeks and you can drive that clean car. The repayment (duration) usually takes a couple of years. A loan for a refrigerator is even faster: the amount is usually relatively low and there is almost time. A mini loan is a good option here, as it can be paid off with the next salary (or 2). A mini-loan will be in your account within 24 hours, or sometimes even after 10 minutes. Handy to keep the milk fresh.
A mortgage loan for a residence will take a little more effort and time. It is therefore usually the largest credit you will receive in your life. Because the amount is large, the duration is usually from 10 to 25 years. In this way the installment is spread well and you can continue to live without having to feel excessive in your wallet. With a home loan you should definitely go to different banks and play them against each other. Banks will negotiate the payment with you, but you have to come up with it yourself. To find a cheap loan – and that also applies to a personal loan or mini credit – you sit down to compare the money providers.
Every provider uses its own rates.
The differences are often small, but even a difference of 0.1% in interest and costs can save you a lot of money at the end of the trip. The longer the duration and the greater the amount, the more you save. You can quickly see online who comes with the best rates and conditions. This is indicated as the APR (annual percentage rate of charge); this way you immediately know what the interest rate and the costs are for the loan. You can request a free quote by surfing to the website of the provider. You enter some information via the loan simulator and you can quickly see what your monthly payment will be, including the APR. You can find a cheap loan by comparing various providers and making your choice. And that is of course the most advantageous loan. Log in and you will see it automatically.