If the interest in the basement, it is the saver’s suffering and the borrower Freud. So, or at least mutatis mutandis, the perception of the current low interest rates among consumers. Also supported by statements by financial experts, always in any medium, that right now is the best time to make long-lasting purchases via favorable credit into reality. Admittedly, this statement is correct at the core, especially as the banks never tire of looking for potential customers with favorable loan offers. The problem with the matter? What appears to be a cheap credit offer in advertising often has little to do with reality in the form of a true loan. So at least the result of a comprehensive market analysis of consumer advocates on “credit costs”.
Installment loan with a fixed interest rate rather rare
What basically “pushes” everyone negative about the topic of credit is the regulation of the so-called “credit-based interest rate”. For example, in the market analysis of consumer advocates, only two of the tested installment loan offers offered a non-credit-standing interest rate for your consumer credit . The rest of the examined loan offers of various banks referred in the small print on the circumstance of a credit-dependent interest rate for the offered installment loan. In this interest rate model, a bank had to offer a range of 2.45 percent to a maximum of 13.7 percent effective interest rate.
How such a bandwidth in the interest rate for customers has an effect is illustrated by an example:
The loan request amounts to 10,000 € for free use with a term of 48 months. If a customer with a top credit rating would receive such a loan, he would receive a total of 502 euros in interest over the entire term of the loan. Where, however, a credit customer with a low credit rating, ie at the upper end of the interest margin, would have to bear an interest charge of a stately EUR 2,855 over the entire repayment term. A burden that is about five times that of a top-rated credit customer.
Installment loan: Also with the options partly high costs
But even those who believe that they have received a favorable credit due to a good credit rating and the associated low interest rate can at some later point in the loan term experience quite unpleasant surprises. For example, on the subject of “early loan repayment”. Again, some banks are not exactly customer friendly with their loan offers. Either there was a limit on the maximum early loan repayment or it was already required alone for the agreement of such a possibility of early loan repayment a fee.
A different picture, however, at the point of installment deferral. Here, the banks were quite moderate in the disclosure of their fees for this service. Who wants to take an installment deferment, can expect here depending upon bank with fees between 5.90 euro and maximally 40 euro. Only with 3 banks and a banking group is the offer of the rate break generally free.
It shows again and again: who seeks a cheap installment credit, should not be blinded by promises on billboards or on the basis of online ads on the Internet. A and O remains the neutral credit comparison, which not only on the interest rate based (here only fixed rate offers filter and compare) take place, but also the view in the general credit conditions should contain. If you do not want to experience unpleasant surprises later on, which unnecessarily burden your budget, then you should take the time for an extensive credit comparison.