Expensive contaminated sites depress the monthly budget, the car is broken, the overdraft facility is overdone or the major renovation is pending. There are many reasons to take out a loan. With our tips you will find the cheapest loan for every situation in life. And the best thing is, in these cases you can also save a lot of money.
Those who borrow money from the bank usually literally have nothing to give away. It is all the more important, when savings are scarce, not to use the supposed first opportunity for a loan, but to make a good, informed and, in the best case, more favorable decision for you. Should you need more money for your life situation the CHECK24 loan comparison will help you included. Because only then do you have the chance of the really cheapest loan offer on the market and can go up to Save 38 percent interest. From the Sensitive But not only do you benefit from a new loan – you can also take advantage of the low interest rates with a current loan: when you reschedule, you can swap your current loan for a cheaper one.
Expensive legacy issues: Debt rescheduling saves real money
Debt rescheduling is very simple: you pay the old, expensive loan back to the bank in one go, and you take in for it Rescheduling Loans with cheaper interest rates. Your savings lie in the difference in interest rates between the two loans. In addition to this difference, the amount of the loan and how long you would still have to pay off the old loan is crucial. Especially when long term loans are high Savings of thousands of euros possible. Debt rescheduling is unrestricted for all installment loans. This is stipulated in the German Civil Code (Section 500). After that, the early full repayment of a loan is always possible. With many loans, this is possible free of charge. If a rescheduling is an option for you, check your loan agreement. Our credit advisors will be happy to help. It is possible that a full repayment of your loan free of charge has been agreed with the bank. Then you will not incur any costs for rescheduling.
Banks have also recognized that new loans are often cheaper than old ones and that customers want to save money in the form of interest. Therefore, many financial institutions require a so-called early repayment penalty. So a fee for your interest loss. After all, the bank expected its interest payments for the entire term. The amount of the early repayment penalty may, however, only amount to a maximum of one percent of the remaining debt if the remaining term of the loan is at least one year. For shorter remaining terms of less than twelve months, banks can charge a maximum of half a percent of the remaining debt. Under no circumstances may the compensation payment exceed the interest that the bank would actually lose as a result of the early settlement of the remaining loan amount.
Find cheap rescheduling loan
The most important point when looking for a cheap rescheduling loan is the intended use. This is a signal to the bank that you do not want to take out an additional loan, but rather that you want to reschedule. Therefore, you should always compare as Purpose of “debt rescheduling” choose. In addition, you also enter your loan amount in the comparison mask. You will then receive low-interest offers from various credit institutions from the CHECK24 credit comparison. Your search for the right rescheduling loan is always there free of charge and Schufa-neutral.
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Save loads of money on a car loan
Anyone who depends on their car, be it for the family or the daily commute, is particularly hard hit by a sudden defect or even a total loss of the vehicle. If a new vehicle is then needed, the savings are often not enough. A New or used cars to finance may be the right option. If you rely on the best personal financing model, choose the right purpose and keep an eye on possible special repayments, you can save a lot of money.
In the car finance jungle, you should choose the most suitable model for you before buying a car. The four most common models are as follows:
- The classic car loan: This is an earmarked installment loan, whereby you can only use the borrowed money to buy a car. You pay this back in constant monthly installments, depending on the term of the loan you choose.
- The balloon funding: In contrast to the classic car loan, with this type of financing you only pay relatively low installments and at the end of the agreed term you pay a large final installment – i.e. the balloon.
- The three-way financing: This term describes a balloon financing in which you can return the financed vehicle at the end of the term in order to pay off the final installment.
- Leasing finance: Here you pay monthly leasing installments, a kind of vehicle rental, to your lessor, who also remains the owner of the vehicle at the same time. Here you do not buy a vehicle, you only pay for its temporary use.
The most constant financing model is the classic one Car loan, because you pay off the purchased car with the same installments. With balloon financing and three-way financing, you have to pay a not inconsiderable part of the financing amount in the end. You should definitely use savings or, in the case of three-way financing, the residual value of the vehicle for this. If these are not available or the residual value of the vehicle is lower than expected, for example due to damage or signs of wear, you may have to take out an additional loan. Then it can get really expensive. Consumer advocates therefore advise against these financing models. Regardless of what you ultimately decide: You should definitely be for all models various offers together to compare and compare the costs incurred. You save money especially if you keep an overview and do not run the risk of paying on top if the financing is too expensive or unsuitable for you.
If you decide on an installment loan when buying a car, that is most important savings tipthat you state the correct use for the borrowing. This means that significantly lower interest rates are possible for you. Depending on whether it is a new or used car, please inform the bank in advance. With this, the institute knows that the money is only intended for the purchase of a car. That means an additional loan security and means one for you cheaper interest rate than with a loan for free use. To protect yourself, you sometimes have to deposit the certificate of approval II with the lending institute.
Special repayment: Currently particularly exciting for e-cars
If you are currently considering buying an e-car, the option is free special repayment on the car loan particularly exciting. This means that you agree in advance with the bank on the possibility of an unscheduled repayment. If you are currently buying an e-car, you will receive the so-called environmental bonus. For e-cars with a purchase price of up to 40,000 euros, this is 9,000 euros (net). 3,000 euros of this is the direct manufacturer’s share, which you usually receive as a discount on the vehicle when you buy it. The state innovation grant is 6,000 euros – but this is only available after buying a car. Because the e-car must first be registered with the Federal Office of Economics and Export Control (BAFA). If e-car financiers use this amount to repay their loan, they can shorten the repayment by many months, depending on the amount. This means that the e-car is paid for more quickly and interest costs decrease considerable.
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Beware of the dispo trap
Many current account owners are familiar with the anxious look at their balance at the end of the month, because with many larger expenses, such as booking a vacation for the whole family, the account can quickly slide into the red. No problem, think many bank customers and may not consider which ones Costs due to the use of the overdraft facility of your current account. In particular, continuous use and high amounts cause the interest payments to the bank to rise quickly. Because there is hardly a more expensive way to borrow money than with your overdraft facility credit on the checking account. On average, banks charge an interest rate of 9.73 percent annually.2 But depending on the institute, double-digit interest rates can also apply.
You get away cheaper if you don’t even use the overdraft facility and take out an installment loan for planned expenses. As a rule, you pay less than half the interest. If you cannot estimate due payments and need a monthly financial cushion, it can also make sense to pay close attention to low overdraft interest when choosing the current account and you choose such an account for the future. If you want a very flexible credit line in the long term, for example to spontaneously use smaller amounts over a few weeks, you may be even better off with the CHECK24 CashReserve. Just like with an overdraft facility, you have a flexible line of credit available here. You can use it to borrow money and pay it back depending on your individual needs. Compared to the overdraft facility, you pay lower interest and use a higher amount available.
Anyone who is already stuck in the dispo trap should make an adjustment easily and without great effort with an installment loan. In most cases, less than half of the interest accrues and borrowers then repay the money in constant monthly installments. in the CHECK24 credit comparison there are many loan offers available for this purpose. All you have to do is enter the amount and select “Dispo compensation” as the intended purpose. A loan with the purpose of “free use” is also possible. Compared to debt rescheduling, the bank does not need a power of attorney to transfer the overdraft facility from you and no compensation is due to the bank for lost interest.
Renovation: borrow money for your home
If you need a cash injection for your home, there are also a few things to consider. To sign up for Modernization or renovation work To borrow money, banks grant a wide variety of loans. As a rule, a modernization loan is a normal installment loan that is tied to this special purpose. Compared to a construction loan, which usually starts with a loan value of 50,000 euros, no entry in the land register is required as evidence for the renovation or modernization loan.
So that the bank knows, however, that you have the money to increase the value of your Property it is all the more important to specify the purpose “modernization” when searching. Apartment or house owners usually also benefit from more favorable conditions, because banks rate their creditworthiness higher when granting loans and issue particularly favorable conditions. In 2020 this was Interest rate difference 14 percent. The average effective interest rate for modernization loans was 3.17 percent, below the average of 3.60 percent of all loans concluded by CHECK24 customers. However, the interest rates can vary. The same applies to modernization loans: The Credit comparison is the most important building block looking for the cheapest offer.
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