At almost every corner or on the Internet, advertising for consumer loans pops into your face. However, many consumers do not know that a loan differs not only in the amount of interest, but that other factors also play a role.
These factors include, for example, how high the processing fees are, whether free special payments can be made or whether the borrower can suspend the payment once in the course of a year. Something like that is in the fine print and is not immediately apparent on the advertising posters. After all, the advertising should attract solvent customers and not deter them. So that the individual does not immediately take up the first best offer, consumer loans should be examined in more detail. The Internet offers plenty of opportunities to do this.
Actual interest rate that is used to calculate a loan
A lot of money can be saved with a comparison. First of all, it is certainly important to compare interest rates. However, it must be mentioned that interest is not the same as interest, because there are differences between the interest offered and the effective annual interest. What we notice in advertising is the interest rate, which does not yet include the other costs. Because these increase the interest rate and in this context the effective annual interest rate is used. This is the actual interest rate that is used to calculate a loan.
Are special repayments possible and can you suspend at a rate per year?
If you want to see consumer loans in comparison, you should also pay attention to these points. Many households use their employer’s special payments to pay more money to the bank so that the loan can be paid early. However, some banks charge fees for this. If these are too high, it makes no sense at all to want to pay the loan early.
It is the same with a break in payment. Many banks offer their customers the option of suspending one month of installment payments a year. This makes sense if, for example, the insurance for the car is due at the beginning of the year or if the bills of the energy supplier flutter into the house. Borrowing at one rate is a significant relief for the borrower. Many banks also offer this free of charge.