Whether you need a car loan, a cheap personal loan or a loan with small installments – with Financedel you can find the best loan conditions in just a few minutes and apply for your desired loan online!
Tips for your cheapest loan
- Carefully compare loans
Since the conditions differ and depend on your personal situation, you should conduct a credit comparison online to find the best deal.
- Determine loan amount and rate realistically
Calculate in advance exactly how high the monthly rate can be without you getting into financial difficulties.
- Choose the correct loan type
Uses can reduce the cost of a loan.
- Take up credit with another person
From the point of view of the banks, this represents a security and makes you more creditworthy. With greater certainty you will receive a loan approval.
Before applying for and taking out a loan, you should make a comprehensive household bill. Compare all revenues and expenditures to determine the monthly surplus available. It will give you a good idea of how high the monthly installment of the loan can be and how much money you can spend each month at leisure.
Calculate unforeseen expenses
Expect generous spending! It can always happen that unforeseen costs arise, for example, due to a defective household appliance. The monthly credit should therefore not be too high.
How to find the cheapest loan
Whether a loan is attractive and cheap for you depends on various factors. Once you have created your budget and know what monthly installments you can serve later, you should focus your attention on the interest rate of the loan.
Always compare the various offers based on the effective annual interest rate. The eff. Annual interest consists of the nominal interest rate and all significant ancillary costs, such as processing fees.
Purpose of the loan can lower interest rates
Helpful may be the search for a special purpose loan. Although you are generally not obliged to specify the intended use of the loan by the financial institution; But this can have a positive effect on interest rates. In addition, loans for home construction or a car loan are more likely to be given as general consumer loans. Inform yourself comprehensively about the respective conditions. This is the best way to estimate costs over the months.
Credit is tied to purpose
Assigned loans require that you may only use the money for the said purchase. Therefore, it is important that you narrow the purchase as precisely as possible.
Select correct monthly rate and duration
Depending on the budget that you have calculated using a household calculator, the duration of the loan can be calculated. In general, the shorter the term, the lower the premium on interest charges. However, with short terms, the monthly installments are higher. An online loan comparison helps to get an overview of how much money is due for the annual rate of the loan.
Weigh what the monthly rate can be and what interest rate is acceptable. Here it is important to find the right balance. An unnecessarily long term increases the total fees, while over-monthly payments can lead to unpleasant late payments or financial bottlenecks. The often attractive borrowing rate for short maturities should not seduce you into a short period of time, if your financial resources do not allow this.
Apply for credit despite “risk group”
Applying for and obtaining credit is more difficult for some people than for others. These “vulnerable groups” include, for example, minors, the unemployed and the self-employed. Especially for these groups, additional collateral is important and necessary to get a cheap loan:
- Credit for minors: Young people from the age of 18 years as a legally competent. Consequently, they will not be able to apply for credit until that point. Previously, borrowing is only possible if the signature of all legal guardians is present. If only one of the guardians refuses to sign, no credit can be taken.
- Unemployed Credit : Those who have no fixed income are considered a potential risk to banks providing credit; after all, the repayment is not secured. The solution can be a guarantor. He signs the application for a loan and assumes the monthly installments, provided that the actual borrower becomes insolvent. However, the guarantor must have a fixed income and prove it. Also a positive Private credit query is required.
- Loans for the self-employed: For self-employed people, lending generally requires an insight into the turnover of the last few months so that banks can be sure that the income is available. Younger companies and entrepreneurs often have problems to provide this evidence. There are special self-employed loans for this purpose. These usually require other collateral, for example through assets. These include land or the company’s fleet.
- Credit for employees in the probationary period: A fourth risk group is employees who are currently still in the probationary period. Although there is a regular income here, the bank can not be sure that the probationary period will end and result in a permanent employment relationship. An alternative may be to wait for the probationary period or to be a guarantor.
Save money on credit
Pay attention to hidden fees, such as processing fees or a residual debt insurance. For many loans, this is done simultaneously with the loan granted. Although the residual debt insurance can be useful in some cases, but especially with small loans, it often turns out to be an unnecessary cost trap.
Remaining debt insurance – really useful?
The residual debt insurance secures you and your family in case of death or sudden incapacity for work. If one of the events occurs and the outstanding installments can not be paid, the insurance company takes over and covers the costs. Alternatively, a complete or partial (for example, only in case of death) residual debt insurance is possible. The contribution can also be influenced by the so-called minimum security.
- The residual debt insurance makes sense if the loan amount is very high (for example, used for a property) or the current income situation is associated with a risk of default. The latter may be the case if the borrower is already elderly or single earner of the family.
- The residual debt insurance does not make sense if the credit has a short term and / or rather low. Even if a life or occupational disability insurance has already been taken out, further insurance usually proves unnecessary.
Term life insurance as an alternative
The term life insurance also applies if the borrower dies and secures the family members against the payment of the remaining debt.
Especially with a larger loan amount and / or a loan from several borrowers, it is recommended. It is taken out independently of the lender – so it can not be completed by the banks – and secures the second borrower in the death of the other.
Special repayment – Repay loans faster
Pay attention to all the details when choosing the loan. These include, for example, fees that may be incurred for special repayments. A special repayment describes an additional payment outside the fixed rate – the credit is thereby shrunk and possibly paid off faster.
The special repayment is made possible in some cases by the so-called rescheduling: The current loan is paid off by a new one faster. Rescheduling is particularly attractive when the interest rate of the new loan is lower.
What is an advantage for you, however, damages the Bank by the lost interest. In some cases this is offset by a higher, new debit interest or a fee – a so-called prepayment penalty. These key data should already be specified in the credit agreement and followed in the course of your credit comparison. Sometimes the rescheduling does not pay off anymore.
Step by step to the favorable loan
If you want to take out a loan, you should proceed as follows:
Calculate credit volume
Ask yourself how much of the actual amount you need to spend in euros to make the investment you are planning to fulfill your long-held request or to balance the checking account. Remember the rule of thumb: “The higher the total, the higher the additional fees due to interest.”
Then use the household bill to check what the monthly rate can be without putting you in financial jeopardy. Our home calculator will help you quickly and easily get an overview of your monthly expenses and revenues.
Take advantage of the Financedel credit calculator and get an overview of the current best conditions. Enter the desired sum insured, the term and the purpose in the upper area. Remember, however, that the interest rates displayed may vary depending on your individual key data (Private credit score, credit rating, occupation, etc.). Inform yourself comprehensively whether an earmarking would make the loan cheaper. Often, for example, a car loan or a mortgage financing in principle cheaper because the financed objects serve as collateral for the bank.
Make a loan application
Via the online portal of the respective bank, you can conveniently complete the loan application as a borrower online and then print it out. Some banks first check your creditworthiness and send you the documents by mail or e-mail if the result is positive. After completing the application, check all the information for accuracy. Then sign the application at all points marked with a cross and collect the necessary documents.
Make sure you check whether you have forgotten something – otherwise this can unnecessarily prolong the loan application. Most banks require payroll for the last few months, and certain collateral such as a statement of your assets and bank statements. Which documents are specifically required, you will learn directly from the respective bank.
Postident or videoident method
The next step is to identify yourself using the so-called postident procedure or videoident. For the Postident procedure, you must go with the loan application and your identity card to a branch of Swiss Post and identify yourself there. Swiss Post confirms your identity and then sends the application to the bank. With the Videoident method, you can uniquely identify yourself over the Internet with the help of a camera and a valid identification document. After the identification nothing stands in the way of the installment loan.
As soon as the bank has received your application after your request, it generally requires two banking days for processing. After that, you will receive the final confirmation and the payment will make the money directly in your account within a short time. Within the following months, the repayment phase begins. The bank deducts the money for the monthly loan installment from your checking account.