Calculate and compare personal loans.
The personal loan – why a comparison is important
With a personal loan, consumers are spoiled for choice: credit offers from banks are everywhere, trying to undercut each other with their terms. Since it is of course hardly possible to get an overview of the various offers yourself, it is advisable to carry out a comparison in advance.
The loan comparison can be carried out with our loan calculator, which enables a direct comparison of the offers for personal loans. So you can choose the bank that offers the best conditions. A good tip: When comparing, pay particular attention to the effective annual interest rate – because, in contrast to the pure borrowing rate, it also includes all other costs that you as a borrower will incur.
The personal loan
If you want to take out a loan as a consumer, you have a variety of options – but most people opt for a classic personal loan. However, this does not just refer to a loan that a bank gives to a private household, but also other financial products that private individuals give to other people.
However, it is important to know in advance what to look for when choosing a bank and the right loan offer. It is clear that the selection of loan offers is now huge and therefore requires some research before you make a decision. We’ll show you what to look out for. A good tip: when choosing, take into account not only branch but also direct banks. These usually convince with particularly favorable conditions and may therefore offer better loans.
What should be considered when comparing different personal loans?
There are some criteria that are particularly important when choosing a suitable loan offer. For example, the term should not be chosen arbitrarily, but carefully. It decides whether the financing is affordable for you at all or whether it goes beyond the financial budget.
Many private loans are granted by banks depending on the term – so the longer the term is chosen, the higher the interest and the total costs. Therefore, it is best to keep the term as short as possible, but really only in a way that you can really afford financially.
The first step should therefore always be to think about what the financial leeway looks like beforehand. So make a precise list of your monthly income and expenses without glossing over anything.
Also keep in mind that a financial buffer is required: something unforeseen can always happen, be it an invoice or expensive medical treatment – a certain amount should be put aside for that. What you can really do without in the end is the budget that you can plan for your loan – this way you prevent yourself from overpaying yourself financially.
As soon as the available monthly budget has been determined, a corresponding term can be selected. The main reason why the total cost of the loan increases with a longer term is that the banks calculate their interest on the outstanding loan amount – annually.
However, a long term also has the advantage that the monthly rate can be kept low. You end up paying more for it, but maybe enjoying a little more financial leeway with your monthly budget.
Versatile: What can private loans be used for?
For most people, money is a constant issue; Sometimes there is an increased need for money, for example in the form of vehicle financing to buy a new car or to renovate the apartment. Financial hardships can burden everyone, and applying for a loan every now and then can be helpful. For example, if a large bill is delivered that you are not prepared for, it can quickly become a financial hurdle that you are not up to.
In such a case, a loan can provide quick relief. If you have a corresponding credit rating, there is usually nothing to prevent you from taking out a personal loan.
But how exactly can you use the personal loan? The credit is primarily granted to private consumers – be it from a bank or from a solvent private individual who wants to invest their capital profitably in this way. No matter what type of loan you ultimately choose, you can use a personal loan in most cases at will, be it to buy a car, pay an invoice, or for any other purpose.
Of course, there are also earmarked loans, but this restriction does not normally exist for personal loans. A good tip: If you already know in advance what purpose you want to use your loan for, it can make sense to look explicitly for a suitable offer. For example, a car loan that is used to buy a new car can be cheaper than a personal loan that can be used at will.
Taking out personal loans may also be extremely useful in order to clear up old credit debts or other financial liabilities. In this case, however, it is important to inform the bank in advance if it is a matter of debt restructuring.
How important are collateral in a personal loan?
Anyone who wants to take out a loan as a private person has a variety of options. The classic option is to go to a branch bank in the area and contact a trustworthy bank advisor who will make you an offer. On the other hand, more and more consumers are also finding their way onto the Internet, where direct banks often offer very attractive conditions for personal loans. Another option is to borrow a certain amount from another private individual. No matter which form you choose – all of these variants are personal loans.
An important question that many consumers ask themselves before taking out a loan is, of course, which collateral is actually needed. Basically, no collateral is required, but most private donors and all reputable banks require at least regular proof of income.
Basically, the only security for a credit institution is a clause in the loan agreement stating that in the event of insolvency, part of the income will be released for attachment. For example, anyone who chooses a personal loan that is earmarked from the outset often has to deposit the vehicle letter with the bank until the vehicle has been paid off in full.
In order to have the best chance of obtaining a personal loan when applying for a bank, you can of course also offer it other guarantees: They not only improve your credit rating, but of course also instill trust in the bank. In the best case, you get even better interest rates because it immediately recognizes that you are solvent and able to pay off the loan installments safely. A security could, for example, be a guarantor, a second borrower or even a property. If you want to involve a second debtor, you could ask a close relative or your spouse for help.
Even if that person has only a low income – the second person alone can already have a very positive impact on the interest rates at the bank. The risk of default for the bank is reduced in this way, because if the main borrower can no longer pay the installments, there is still the second debtor.
The classic guarantee works in a very similar way – with the difference, however, that a guarantor can only be held liable if the principal debtor is no longer able to pay the loan installments. If you don’t have a good credit rating yourself, you should consider including a guarantor – this increases the chances of still being granted a personal loan. If you have a holiday home abroad or another property of high value, banks like to use these assets as security.
The interest on personal loans – where it depends in particular
When it comes to money, you should always weigh it up carefully and not immediately accept the first, supposedly good offer. On the contrary: take the time to compare different offers. This is the only way to gain an overview of the current interest rate level on the financial market and to ensure that the interest rate on the selected loan offer is not too high. It is best to use a loan calculator to save a lot of time and work. If you wanted to compare the offers of all banks in Germany yourself, it would take several days.
When comparing different personal loans, there are always a few things that you need to know in advance: The effective annual interest rate is the most important factor when comparing interest rates. It only becomes problematic that the level of interest is often not given so clearly by the banks. Private loans that are granted by banks regardless of creditworthiness are generally considered to be particularly transparent.
Nevertheless, the borrowing rate is revealing, but not really decisive. The APR, on the other hand, includes all other costs that you as a borrower will incur. This can be, for example, processing fees of the bank or other fees that have to be paid – so don’t underestimate the importance of the effective interest rate! Once you have determined the effective interest rate of an offer or if it is given directly by the bank, it is particularly easy to compare different loan offers.
However, a comparison of interest rates is also important because interest rates actually make up the main part of the costs incurred by the borrower for a personal loan. A small example: If you take out a loan and do not take out any residual debt insurance, you save costs and thus reduce the entire burden. The cost of the loan can also increase if you use various special services of the bank during the repayment phase, such as a flexible adjustment of the installments or a special repayment.
Who is the personal loan worth for?
In principle, the personal loan is worthwhile for anyone who wants to access cash at short notice, fulfill a wish or make an important purchase. In short: Loans have long since become “socially acceptable”.
More and more private individuals are opting for a loan in order to conveniently pay an invoice, to finance a vehicle or for other reasons that require money. Nevertheless, care should always be taken: A loan comparison should never be missed, because this is the only way for future borrowers to find the best – and above all the cheapest – offer with which they can fulfill their wishes.
Of course, it is also a good idea to go to the house bank first – but still take the opportunity to inquire about other personal loans from other credit institutions and direct banks online. In this way, you can still save a lot of money.