An online loan is usually granted much faster than if you apply for it at your bank’s branch. Another advantage is that you can, at least initially, save a lot of time, and do this comfortably from home over a cup of coffee. At the same time you can play with the many variations and choose the best online credit for you.
Since the beginnings of the popular Internet in the early 1990s, more and more business areas have been transferred to the Internet. These days it is not only easier for customers to shop, play, communicate or even sell on the Internet. The industries have also discovered the enormous advantage of the Internet for themselves. With the help of the Internet you can reach a much larger customer base, not only in your own country but all over the world. Promoting services on the Internet is also much faster, you have many more options and, last but not least, the customer is also willing to buy a product or service more quickly if he buys online. At the same time it offers the enormous advantage for the customer that he can inform himself extensively, and compare as many offerers as possible, before one decides to a purchase. This advantage should also be used when looking for an online loan.
With online credit you are on your own
If you decide to take out an online loan, you should be aware of several things. No advisor will be available, all considerations have to be made by the borrower alone. This concerns things like the term of the loan, the installments you are willing to pay or, more importantly, you are able to pay. The bank will make a credit calculator available on the Internet, with which one can calculate the various installments with an X term, which one indicates. The interest and fees for a loan will be different at every bank, which alone makes a thorough comparison worthwhile.
Caution is required when calculating the rate that can be achieved. Here all costs, which one already has without the credit must be included into the consideration. The rent still has to be paid in 2 months, for example. Starting with the income, i.e. wage or salary and any other income such as rental income, if these are regular, these play the main role for the lender in online credit. An apprentice with a net income of 600 euros will hardly receive a loan of 20,000 euros if there is no further security. Once the income has been determined, all running costs are deducted in order to determine the possible monthly instalment. Besides the rent these are additional costs such as electricity, gas, water. Then the cost of living, you should know how much you spend each month. Savings deposits for e.g. holidays or other purchases are included, as are the children’s school fees. Since online credit does not include an advisor who asks specific questions, you have to do this yourself. With online credit, communication with the bank is only carried out by e-mail.
The bank’s services play a major role in the selection of the loan. If, for example, fees for processing the application or related services are already being charged, the provider should also refrain from doing so. It is important to have the possibility to adjust the rate. A flexible rate can be important in the event that you lose your job, incur hospital costs, or otherwise be prepared for a possible emergency. The ideal provider will also offer the option of pausing the loan if the installments cannot be paid at all. All these questions are also important for an online loan, because once the contract has been signed, there is usually no going back. A comparison of the interest amounts should be natural, here one can look directly on the web page, and use a credit computer.
It is not advisable to apply for a loan from several banks at the same time, as this has a direct effect on creditworthiness. Every bank carries out a credit assessment. If the Schufa receives several inquiries at the same time, the chances of obtaining an online loan will dwindle.
This video also gives a little insight.