There are a variety of different credit models available on the market. Often, the purpose determines which loan is possible and most favorable. Among other things, banks distinguish between the following loans:
- Auto loans
- real estate loans
- consumer loans
- Mail order loans
- renovation loan
What costs do you have to pay attention to when making a comparison?
In addition to the interest rate, borrowing may incur additional costs, which you must include in your calculation. For example, there may be processing fees that are payable once. The amount varies from bank to bank and the differences are sometimes very large. Many banks also offer the option of taking out a residual debt insurance. This is mandatory for some contracts, not for other degrees. Such insurance secures the installment payment if the policyholder becomes unemployed, incapacitated or unable to make monthly payments for similar reasons.
Automobile loans are taken out for the financing of motor vehicles and can be concluded through the dealership or its affiliated bank. Here it is best if the buyers are guided by the actions. Often, interest-free loans or loans are offered on favorable terms for a specified period. Information about the respective offers can be found in advertising and banner ads. You can also ask directly at various car dealerships and specifically inquire about such promotions.
Real estate loans
If you want to buy a house or apartment, then it is advisable to talk to your own house bank first. Here customers usually receive the cheapest contracts. In a comparison, the duration of all offers must be the same. The shorter the term, the cheaper the costs. The house or the apartment is usually used as security, a deposit then leads again to more favorable conditions. An equity capital performance of around 20 percent is recommended.
Consumer loans, mail-order loans and renovation loans
For mail-order loans, you are bound to the respective supplier. The interest rates depend very much on the term. Consumer loans and renovation loans can be taken out at banks. A comparison is worthwhile. Interest rates on these loans are often slightly higher than on other types of loans, as there are no collateral, such as auto loans or real estate loans.