Loans with low interest rates, the Best Bank paves the way for this with its interest rate policy. Banks borrow their money for free lending. Unfortunately, this does not mean that the borrower will benefit from the low interest rates.
We want you to find the right loan for your project. We support you with information on how credit institutions offer loan interest rates that match personal creditworthiness and more.
Loans with low interest rates – what is low-interest?
Loan advertising claims that low-interest loans would be offered by any bank. Simply march to the next branch or accept the first online offer, no one can seriously recommend this. Favorable interest rates always interact with personal creditworthiness, the purpose, the term, type of loan, and much more.
A free comprehensive loan comparison on the Internet provides a first comprehensive overview of current interest rates. The interest comparison calculator inquires all relevant banks on a daily basis. At first glance, all providers offer loan offers with low interest rates if “cheap” were considered a rubber paraphrase. The offers differ quite significantly from each other in the amount of interest.
Some particularly inexpensive financing offers promise low-interest loans with a credit-dependent interest rate. Others advertise with a non-credit-related interest rate, which is usually noticeably higher than the credit-related interest rate. Further back in the listing are loan offers with a high entry rate and extremely high maximum rates. Can these offers be cheap?
Understand loan interest correctly – recognize differences
The effective interest rate must always be shown in Germany. It includes all interest and any other predetermined costs associated with lending. The borrowing rate, on the other hand, only shows the pure interest costs. Most “cost traps” are excluded due to the mandatory effective annual interest rate.
Only if optional services, such as credit insurance, are additionally taken out are they not included in the effective interest. Credit-related interest and non-credit-related interest differ due to the influence of personal creditworthiness on the interest rate. Interest rates that are independent of creditworthiness apply to all borrowers who are generally qualified to lend.
The representative example serves to identify the interest rate at which the majority of all applicants actually receive a credit-dependent interest offer. Alleged interest rate jumps between credit-related interest and non-credit-related interest rates are put into perspective if borrowers correspond to the majority of the applicants.
Depending on the credit rating or not – who should finance how?
Flat-rate offers promise loans with low interest rates for people with above-average creditworthiness. A decisive factor in deciding who actually saves interest is the choice of profession. Employees whose employers are the public sector have good chances. Being an innocent lifetime official who works in a managerial capacity corresponds to the ideal. There is hardly any argument against the entry rate.
The majority of all borrowers find their loan at the best interest rate with the credit-independent loan offers. Since borrowers with a slightly better credit rating offset the risk for people with a slightly poorer credit rating, it is the fairest loan offer. Nevertheless, not everyone is qualified for the cheapest interest rate independent of creditworthiness.
Loans with low interest rates, with a noticeably poorer credit rating, are the offers at the interest rate dependent on the credit rating, which are further down in the listing. They are for borrowers whose creditworthiness is not sufficient to be assigned at an interest independent of the creditworthiness. However, their creditworthiness restrictions can be compensated for by higher interest rates. The employer is also interesting again. These offers often offer the cheapest bank loan for temporary workers.
Financing at low interest rates – all loan types the same?
For God’s sake, not every type of loan is offered at the same low interest rate. It is particularly expensive to conveniently finance through the quick short-term loan. Simply insert the card into the machine, use the overdraft facility and cost up to 7.5 times the amount of an installment loan.
In whole numbers, 3,000 USD overdraft facility or credit card overdraft costs up to 450 USD per year. The cheapest installment loan at interest rates independent of creditworthiness costs only USD 32.14 interest per year. So it is clear that installment loans are really loans with low interest rates.
Financing based on results – flexibility to search for offers
The framework loan is interest-bearing between the installment loan and the overdraft facility. It costs little more than an installment loan, but can be used almost as flexibly as an overdraft facility. It is a good solution if the loan amount has not yet been determined. It should also be noted that regular bank loans are not the only offer with low interest rates.
If the creditworthiness for lending via banks is poor, it is worth looking at the offers from special financiers and private lenders. They enable independent borrowing without any guarantor with the individual market interest rate.
Loans with low interest rates – special offers or from private donors
Loan brokerage is not a bad choice when looking for the cheapest interest rate. There is no problem in finding reputable placement offers. Provided that only well-known agents were asked. Good Finance would be renowned, for example by DIW Berlin (German Institute for Economic Research), for arranging online credit.
Good Finance and Best Lender are regarded as the market leaders in the reliable brokering of loans from private to private. We recommend loans with low interest rates through Good Finance, as the portal provides secure access to bank loans and private investors. Special offers are interesting not only for those with poor creditworthiness, but also for people without creditworthiness problems, such as property owners.