Consumer credit and interest rate: how much can you save?

Consumer credit and interest rate: how much can you save?

When customers are looking for a consumer loan, they are primarily interested in the interest rate and sometimes forget other elements that can be important. How important is the interest rate for borrowing costs and how do I get a cheap consumer loan? As credit specialists, we know the answer.

Consumer credit, interest rate and payback period

Consumer credit, interest rate and payback period

With a classic consumer loan, two factors influence the costs: the interest rate and the payback period. Customers often compare different interest rates to get the cheapest offer, but sometimes forget to take the payback periods into account. The fact is that a consumer loan with a better interest rate is generally more expensive for a longer period. We take the example of a consumer credit of USD 10,000:

  • With an interest rate of 7.9% over 12 months, the loan costs a total of USD 417
  • With an interest rate of 5.9% over 24 months, the loan costs a total of USD 609

In this example, the consumer loan at 5.9% interest is almost 50% more expensive than the offer at 7.9%! The difference lies in the payback period, which is 12 and 24 months.

Other important points

Not only the total loan interest is important, but also the other cost points of the loan have to be considered. In certain cases, banks charge additional costs when it comes to consumer credit. For example:

  • Installment insurance secures the repayment of the monthly installments (eg in the case of unemployment). This insurance has special modalities and means additional costs for the customer.
  • Will early repayment fees apply?
  • Are there any fees for a billing request?

Consumer credit and better interest rate – how much can you save?

consumer loans

For our example, we take an “average” consumer loan of USD 25,000 over 36 months. How much can you save with an optimally low interest rate with this offer?

  • Interest rate of 8.9%: monthly rate of USD 789 for a total interest of USD 3,434
  • Interest rate of 7.9%: monthly rate of USD 779 for a total interest of USD 3,048
  • Interest rate of 6.9%: monthly rate of USD 768 for a total interest of USD 2,662

In our example, the following applies: Every time the interest rate drops by 1%, the borrower saves USD 386. For a consumer loan of USD 25,000, the cost differences due to the term are much larger than due to the interest rate. The same loan of USD 25,000 with an interest rate of 7.9% already costs USD 4,086 if it is repaid within 48 months instead of USD 36 (a little more USD 1,000).

Request the help of a specialist

Are you still hesitating to take out a consumer loan? Don’t you know which interest rate and which term suit your situation? We can only recommend that you contact an experienced credit broker. They can take over your dossier and compare offers so that you benefit from the best offers on the market.

Credit online pledge – the key to cash

Credit online pledge – the key to cash

We help you to get a loan agreement!

We help you to get a loan agreement!

Credit Online Commitment: This is my personal story of how I tried to get a credit online pledge and was repeatedly rejected by banks at the beginning. And then, I managed it anyway .. read on and learn how you can manage to get even from private lenders today online loan approval!

HOW I managed to immediately get a loan online pledge and how I could lend money online with NO credit bureau and bad credit.

How I turned my back on the banks, my intensive research and search for loan sharks, my experiences with them, traps, pitfalls, tips and tricks, and how I successfully tracked down private lenders.

So I managed to get cash with credit card providers immediately despite credit bureau and despite problems with my credit rating. And so you can borrow money immediately!

If you would like to have a loan online confirmation right now, then you will find a search order at the end of this article. We are looking for you cheap online loans with instant confirmation. The result you get directly and immediately sent to your email!

Online instant loan with instant confirmation

Online instant loan with instant confirmation

Learn more about what I personally think of banks, why I avoid these institutions today like the plague and why your products are ruining our market. Learn how I managed to get an instant instant online loan and how I got cash into my account in 24 hours.

Why banks have built a system that has a direct impact on your financial situation and your personal life. Why banks are the roots of all evil and our financial system and labor market as well as your personal life is dominated by banks cartels. What I personally think of banks and what I advise you in dealing with these institutions.

Here you will also find the facts about loans for trainees and loans from private to private. Also, borrowing money from private is a possibility!

You can compare and assess instant loans. For this it does not need a complex Baufinanierungsrechner. I put the facts on the table and do not talk about the bush. What to look out for when looking for cheap house purchase loans.

Whether there are also opportunities to get loans for the unemployed, where there are these, as you can apply for and also WITHOUT credit bureau and despite bad creditworthiness can lend money immediately.

Apply for a loan online and receive an instant confirmation?

Apply for a loan online and receive an instant confirmation?

The good news in advance. There are these offers and I have also made it possible for thousands of people to apply for a loan online and get an instant confirmation!

If you want to transfer money to the account as an example, 1000 Euro, then you should always remember that you should adjust your repayment rate to your personal financial circumstances.

Also, loans for students are possible if you only know how and where to apply for them. The same applies to loans for pensioners or when it comes to finding cheap loans for the self-employed.

So you see, every one of us needs money. No matter in which situation you are, whether you are a student, a retiree or an entrepreneur.

And also the purpose of the loans is different. But that is completely normal. The one thinking about loans for founders and others think of just getting cheap personal loans. Whatever your heart desires and in which situation you are currently, you are in the right place.

Years ago I was in the same situation myself and I went through a lot when I was in Munich. As mentioned in other articles, I urgently needed money and I realized that if I borrowed money right away, it would be cheaper than transferring money from abroad.

Currency rates were so bad that it was just better if I took money. Anyway. When I tried to borrow money, I quickly faced some problems.

The problem immediately to get money and what you should know!

The problem immediately to get money and what you should know!

The problem of getting a loan online instant loan is pretty big. And that’s why I’ve made it my mission to solve this problem here.

The application and the examination of my application had taken an infinite time. First, I went to my house bank. And the bank employee was a real zero. Yeah right. As in the movie Back to the Future it has been said again and again. But here it was a fact that this bank employee was really an absolute “bottle”.

After a super long, boring and complicated conversation, I had done nothing but give the dud to my complete data and explain my problem.

But he was unable to understand my problem, let alone offer a solution. He said he understands that I need the money fast, but still .. he has to enter my data in his computer and then send it to the central office.

What ever. The fact was that this process would have taken weeks until I would probably get a rejection. So I knew, the house bank with all the capable staff was not my solution.

So it went straight on with my online research and Google. And there started the next problem.

One of the other problems is the fact that many applicants receive an online refusal. And when that happens, the frustration is huge.

For me it was the same. While I was able to quickly find online lenders through banner ads. But when I came to the site, I had to fill in hundreds of data, and after hours of searching and filling in data, I had also received rejections of my loan application over and over again.

So damn I thought that everything can not be true. Why the hell do they all reject me? What’s going on here? Is my credit bureau so bad, or my credit rating, or why does it fail here?

After wasting several days here, I came up with the next idea. All I had to do was find a really good loan shark. A really good loan shark will be able to get me a good and cheap credit.

Especially because I would borrow the money in the short term. Again, the start was anything but easy. But I did not give up and after months created a personal list and found loan sharks in Germany, Austria, Switzerland, Lichtenstein and Luxenburg which make it possible to carry out all types of financing.

Much faster, more efficient and better than my house bank would ever have. You can also read my article on loan sharks by reading much more about it. But now continue to how you can receive your immediate payment!

The madness loans are supposed to be cheap, and above all, I should quickly have the money in my account. So that means I have to assume that I also get an online instant confirmation. Because without a loan commitment, I will not get the money.

That’s why I always knew. I have to find a simple solution here. The problem seemed simple, but having the solution … finding an answer to it was simply to find providers that would make it possible to meet those criteria.

Said and done. My mission started. And it was really frustrating at the beginning. Monthly searches, emails, contacts, phone calls, etc. etc. etc. etc.

What I did not have to do everything to put together a package after 12 months which really helps. To have found the best loan sharks and then also to find credit card providers who can lend you money without credit bureau.

Credit with online instant confirmation

Credit with online instant confirmation

You probably know from personal experience that it can be frustrating. Otherwise, I suppose, you would not have found my page. But I can tell you, there is a solution.

It is possible to get a loan with online commitment if you have the right provider. And if you also want to borrow the money for the right purpose. This really does not matter if it is a car loan online instant loan or general online loan with instant confirmation.

Again and again I get the request if there are really cheap online loans with instant confirmation. Why I so often ask this question is probably clear.

Many read about it, but only a few can find one. And if you have found an offer, you will simply be refused after the application. Boom, and again nothing with the money. Out of mouse, end.

But the good news is that I already did a lot of preliminary work and was diligently searching. And what’s the name of the great saying? Right, who is looking for the finds.

However, my search and finding these unique private lenders has proven to be very tedious and time-consuming. Anyway. I have good news. I’ve found what I’m looking for and I’ve already helped hundreds of people lend cash immediately.

Where is this loan? And how can you get one yourself right away? Where do you have to file an application and how long will this process take?

I can tell you that it can really work very fast with my providers. Yes it is right. Easy and fast to have the money in the bank account.

So if you really can not take it anymore and you want to get straight to the lenders, then everything is clear. Below you will find providers which you can enable an online loan with instant confirmation!

I hope you now realize that it is also possible to get an online loan with instant pledge for the unemployed. No matter in which situation you are currently. Anyone can get an instant online loan, provided you know the right people!

The repurchase rate of credits: is it a good indicator?

The repurchase rate of credits: is it a good indicator?

Even though the rate on a loan buyback is a key element, it is not necessarily the right indicator to know if the transaction is profitable. While it is true that financial institutions and banks play on attractive rate offers to attract customers wishing to consolidate their loans, other parameters must be taken into account. The redemption of credits is not a financial package that can earn money, but rather a way out of a situation of high debt. It is above all to find a certain comfort in his personal finances. This is why consolidating its credits leads to an extension of the repayment term of the new credit subscribed, in order to benefit from a monthly payment adapted to the situation of the borrower and of course to give him a financial serenity.

What is the rate of redemption of credits?

What is the rate of redemption of credits?

In a credit buy-back operation, whether in the form of consumer loans, a home loan or both, outstanding loans are collected and settled, while a new loan is put in place. square. This then benefits from new conditions, including a new interest rate, as well as a new single payment amount that will be refunded over a period also reviewed.

The rate of a repurchase of credits, is not only the rate of interest on the sum borrowed. Other expenses are to be envisaged, it is about the expenses of guarantee, the ancillary expenses and the expenses of file. These are included in the APR (annual percentage rate of charge) which will make it possible to evaluate the profitability of the purchase of credits. The activity of the financial market experiences sometimes important variations of the interest rate, that is why it is necessary to learn well to seize the best moment and to benefit from a tendency to fall if necessary. It is important to remember that to compare an offer, it is imperative to rely on the APR.

On the other hand, the best credit surrender rate also depends on the credits that are to be bought back. Here again, it is necessary to carry out a study before embarking on such an operation. The rate of the new loan subscribed in the context of the repurchase must necessarily be lower than that of the credits to be grouped together. The repayment period must also be taken into account because it has a direct impact on the rate. The shorter it is, the more interesting the rate will be, and on the other hand the longer it gets, the higher the rate goes up, while the amount of the monthly payment goes down.

Is the rate the best indicator of a successful buyout?

Is the rate the best indicator of a successful buyout?

To this question we answer no, the interest rate is not the best indicator for estimating whether a redemption of credits is successful. Other criteria will determine the value of a good credit redemption opportunity: the cost of insurance, the fees, the amount of the monthly payment, the duration of the credit. The interest rate is certainly the element that indicates the cost of financing, so the borrower is tempted to look for the lowest possible one from the start. It is further encouraged in this way by credit agencies, banks and brokers who bait customers through attractive rate offers.

Insurance, for example, is a very important parameter. If it is very expensive, the offer will not be interesting. The fees are also to check, they can in some cases be negotiated or canceled. The monthly payment is another very important element of a successful credit surrender operation, because when it is reduced it helps to rebalance the household budget. Above all, it will be able to be adapted to the borrower’s situation and repayment capacity, taking into account all the different parameters, both income and family situation. The purpose of a loan consolidation is, first and foremost, to restore flexibility to household finances. This means that even if the repayment term increases and increases the total cost of credit, the borrower can finish his month ends peacefully but also find a savings capacity.

What should be so attentive?

What should be so attentive?

To determine the feasibility of a loan consolidation project, there are some key points that need special attention, in addition to the interest rate on credit redemption. This is the rate of indebtedness that should not exceed generally 33%. This means that the household must have sufficient living space to cover the expenses and other daily expenses. The bank or lending institution will also be attentive to the total amount of credits to be bought back, it will be necessary to check if the borrower has the capacity to repay a new loan in the context of the repurchase transaction.

As already mentioned above, the monthly payment is a fundamental element, because it is she who will define the financial comfort of the household. A contract that provides the possibility to vary the monthly repayment is a benefit, because in case of unforeseen circumstances (divorce, death, disability, loss of employment, etc.) the borrower can change its amount or even postpone the monthly payment.

The terms of early repayment are also important because the borrower may at some point in his life have the opportunity to pay the credit. The benefits provided for in the contract may be negotiated. Finally, the commercial relationship with the lender is a significant asset, especially if a difficulty was to occur during repayment of credit and of course to obtain better conditions.