Many have prejudices against loan providers that offer easy payday loans. Most people have a notion that payday loans and other online loans are much more expensive than bank loans. This is sometimes true, but there are also plenty of examples where banks also offer high-interest loans. When you apply for an online loan, the loan provider makes a credit assessment of you. look at your income as well as whether you have other debt. If you are registered as a poor payer in either the RKI or the debtor register, it is often very difficult to be allowed to borrow. Based on this credit rating, your interest rate is determined, which is therefore individual. The better your credit rating, the lower the interest rate you can earn and vice versa.
However, it is not just the loan providers online that do this type of credit assessment before deciding whether they will lend to you and how low or high an interest rate they will offer you. So do the banks. Therefore, if you have other loans where you already have a large debt in the eyes of the banks, you could easily risk getting a loan with a high interest rate. Of course, there is a big difference between what kind of debt is involved and whether you have any value for the money that you owe. Eg. housing debt is not seen as near as bad debt as consumer debt has the home to provide collateral. The credit rating also takes into account how much money you can repay each month and when you want to repay your current debt.
Do you have debt in advance?
Therefore, if you belong to the group that, in the eyes of the bank, has too much debt, which belongs to the bad of sorts, it may well be worthwhile to apply for an online loan. To secure yourself the cheapest possible loan, you should, as a rule of thumb, apply to at least three loan providers. In this way, you allow all three companies to make a credit assessment of you and make a loan offer in which your specific loan condition will be stated. It is absolutely mandatory to apply for a loan, and should you be approved to borrow from several companies, simply choosing the loan that is most advantageous to you.
Several benefits of consumer loans online
The advantage to online loan providers is that they are usually not as critical as the banks, so if you have experienced that the bank has refused to lend to you, you can easily have a chance online. In addition, loans taken out online are often more flexible than bank loans. offers interest-free months if needed. Another thing is that many associate online loans with small fast loans. Of course, there are plenty of them too, but what many may not realize is that you can actually borrow up to very large amounts online. How much you can borrow varies greatly from provider to provider, but it is not inconceivable that you can easily borrow enough money for a new car or to have the house renovated once and for all.