Fine Choices You Must Go For in Quick Cash
Credit institutions are increasingly opting for credit-based interest rates, so that a comparison of offers using a loan calculator has become more difficult. A credit-based interest rate means that the amount of loan interest payable in percent depends on how the bank assesses the applicant’s creditworthiness. Thus, it may happen that you only have to pay interest of 2.9% on a loan, while your friend at the same bank may pay an interest rate of 7.8% due to a poorer credit rating. The use of the private quick cash is perfect there.
Also typical for personal loans are the term, the loan amount and the monthly loan installment. For most installment loans, the conditions are currently within the following limits:
- Annual percentage rate: 1.9 to 8.9%
- Terms: 12 to 84 months
- Loan amount: $ 2,500 to $ 50,000
- Credit: 50 to 500 $ a month
It certainly makes sense before you take out a personal loan if you first determine how much the monthly installment is for different terms by using the desired loan amount. To carry out this calculation, credit calculators are available to you on the Internet for free. If, during the first calculation, you find that the calculated monthly rate is very high, you may be able to reduce the rate by changing your duration.
Personal loan also to reschedule use
What many consumers do not know: A personal loan as a consumer loan is not only suitable for refinancing, but is also ideal for debt restructuring existing liabilities. In particular, borrowers who already serve a personal loan should consider making a possible retraining. At the moment, interest rates are also on the decline in consumer credit, so you may still be paying an interest rate of 6.9 or 8.9%, even though rescheduling your debt in a new personal loan may mean that you only have 2.9 lending interest 3.9% would have to pay.
By rescheduling into a new personal loan, therefore, a future interest savings is possible, which is why this alternative should be checked in any case. Rescheduling is particularly useful if you do not yet use an installment loan, but instead overdraw your checking account almost regularly and with a larger sum, in other words use your discretionary credit. In this case, you may pay 11 or more percent interest, so that rescheduling a personal loan can result in significant savings in interest.
As you can see from this example, the rescheduling of a personal loan, especially from the previously used disposition credit, can mean a considerable savings of interest. In fact, almost every personal loan that is offered by the banks as a consumer loan or consumer credit is suitable for rescheduling. Such debt rescheduling is particularly problematic when you take out the personal loan from the same bank where you have previously used the disposition credit.
Processing fees for consumer loans are not allowed
Until a few years ago, processing fees for personal loans and consumer loans were a very sensitive topic. In the past, many banks have charged a one-off processing fee for traditional installment loans, including personal loans, in connection with borrowing, which often amounts to between 1 and 3% of the loan amount. However, a few years ago the Federal Court of Justice ruled in a landmark judgment that such lump-sum processing fees for consumer credit are not permissible.