- What is an installment loan?: The installment loan is the most common form of loan. You agree a loan amount with the lender, which is repaid through constant monthly installments including interest. The final installment leads to the termination of the loan agreement.
- Flexible structure: Installment loans can generally be structured quite flexibly. For example, the monthly charge can be reduced by extending the term. But then you have to pay more installments.
- Credit comparison is worth it: for every installment loan you pay a fee, namely the interest. And at best, this interest rate should be as low as possible. It is therefore always worth comparing the offers of several banks.
Compare installment credit and fulfill new wishes
Installment loans can be used for a wide variety of wishes, such as renovating the apartment or for the long-awaited dream vacation. A typical example of this is the purchase of a car. With the help of such a loan, it is possible to make a larger purchase that you would otherwise not be able to save, or only after a long time. The loan is then conveniently paid off in monthly installments.
Loans from regular banks or car banks
An installment loan, such as is required for a car purchase, is offered by regular banks and now also by the credit institutions of car companies. However, it should be noted here that the in-house auto banks often only grant an installment loan for the exact purchase price of the car. In addition, discounts or other benefits can usually no longer be negotiated here.
If you need additional cash in addition to the purchase price to convert the car, for example, this is usually not possible. On the other hand, financing with an external bank is completely different. Here you can often even get a discount from the dealer by clever negotiation. In addition, the customer usually receives a higher amount without further ado, so that additional costs, such as a set of winter tires, are also covered. Because of this, a regular loan is worthwhile for many car buyers.
It’s worth comparing: The amount of interest varies depending on the bank
However, you should not start with the first loan offer. Because the loan offers of the different companies differ significantly in many factors. Because of this, it is advisable to compare the various offers.
For example, it is quite possible that one bank has to pay less interest than another bank. Although the interest rate differences often do not look very serious at a glance, they are clearly noticeable in the payments. After all, such a loan is repaid over many months, so you should definitely pay attention to a low interest rate when comparing.
Favorable loans due to low interest rates
In addition, the interest on such a loan is currently very cheap. Because of this, you currently have to pay back as little interest on a loan as has not been the case for a long time. It is therefore currently worth taking out a loan from this point of view.
Equally important when comparing: term and repayment
But it’s not just the interest rates that should be compared on a loan. For example, the amount of the repayment and the term of the loan also play a major role in the comparison. In general, the following applies: the longer the loan runs and the less repayment is paid, the more interest has to be paid. Because of this, it is advisable to compare the installment loan offers from the many different banks. Because when comparing, the most important conditions of the credit institutions can be seen at a glance. On the other hand, getting all of this information yourself would be very time-consuming and nerve-wracking. A comparison is therefore an ideal way to quickly and easily get a good overview of the various installment loan offers.