Loan calculator compare top conditions

It’s understandable that you have some concerns about taking out a loan. After all, you are in debt for several years and have to continuously pay a fairly high credit rate to the bank.

Sure, if you see both the credit installments and your normal monthly expenses, such as rent, then there is quite a bit of money. And that must always be there.

But you have no real reason for concern. Because if you can cope with the normal monthly costs and calculate in advance how high your monthly rate may be, then you run no risk of taking out an expensive loan.

This means that the loan is hardly noticeable in your life – apart from the fact that you have to plan the rate accordingly. You can pay it back conveniently and easily without having to forego anything.

Find out what your maximum monthly rate can be and what else you need to know about your loan and loan calculator.

Calculate your maximum credit rate in four simple steps

Calculate your maximum credit rate in four simple steps

It only takes four quick and easy steps to calculate how much credit you can easily afford without having to limit yourself. Calculating the maximum credit rate also pays off in another perspective. Because you will find out how much you actually spend each month and what you can then optimize your finances.

Unless you were able to determine the remainder of your invoice, you should first optimize your finances before taking out a loan. The risk that you will otherwise either have interest rates that are too high or that you will not be able to pay your installments is simply too high and is not worth it.

What is the credit rate made up of?

And: How do different terms or interest rates affect the rate?

You now know the maximum amount you can spend on your loan per month. Now all you need is the right offer. Carry out an online loan comparison and discover the current best loan offers from all German banks and credit providers.

It is very simple: At the top, enter the amount of your loan and what term you want it to be. You will then receive a clear list of offers. Based on your entries, it is sorted in ascending order according to the lowest rates.

The monthly installment is always made up of the loan amount, the term and the effective annual interest rate. And now it comes: All three components also play an important role. Many specialist texts only emphasize the annual interest rate, combined with the ongoing low-interest rate of the Private Bank and that you have to look at the interest rate when choosing your loan.

That is definitely true, but the annual interest rate is only half the battle . Especially if you are looking for a loan that you can get away with at a nice little rate. Then the annual interest rate has hardly anything to report and instead focuses on the term.

It is interesting to see how the interest and the term each affect the cost and installments of a loan. That is why you can now see two examples that play with different interest rates and terms on a loan of 10,000 USD.

We initially expect a term of 48 months and then only extend it for another year. This one year makes a huge difference in rates, but you hardly have any additional costs due to the 12 months.

What do you learn from these examples?

What do you learn from these examples?

  • The APR has a major impact on the total cost of the loan.
  • The term has a major impact on the monthly loan installment.
  • The other way around, there are hardly any differences.

In the first example, we raised the APR by 3%. This mainly affects the cost of the loan. Suddenly you pay around 780 USD more for the same loan as before. Monthly, the higher annual interest rate is only noticeable with a difference of around 13 USD.

In the second example, we have extended the term by one year. This hardly affects the total cost of the loan. You only pay around 150 USD more for your loan if you add one year. But what changes a lot here is the monthly rate. Just because you take a year more to repay your loan, you save around $ 42 a month.

Why should I do an online loan comparison?

Of course, it is easy to visit the trusted advisor at the house bank and get advice from him. But you are giving away a lot of potentials. Because loans from the house bank are usually significantly more expensive than loans that you can find online.

“More expensive” means with a view to the annual percentage rate. The term can almost always be adjusted so that you can conveniently pay the rate alongside everything else.

You have just learned how much the total costs will change if you pay interest of 2% and 5%. The same example loan of 10,000 USD was around 780 USD more expensive in total. And now it is the case that the house bank loans mostly correspond more to the 5% example, while online the 2% loans tend to wait.

What should you look for in your loan?

What should you look for in your loan?

  • Make sure you don’t borrow more than you really need.
  • Relative to the term and the effective annual interest rate with a view to the expected costs and the expected credit rate.
  • Be aware that you may need to provide collateral. This is how the bank reduces its risk.
  • Consider the option of debt restructuring and special repayment, otherwise, you will take valuable opportunities. With a debt rescheduling, you could later exchange the current loan for a cheaper one. And with a special repayment, you could repay the loan faster.
  • If you fear that there may be problems with the repayment, you should take out residual debt insurance.
  • Several loans that are already running in parallel can result in banks refusing another loan.
  • No processing fees, which are also prohibited and no longer charged by the banks.
  • Always pay attention to the effective interest rate instead of the borrowing rate, because the borrowing rate only includes the pure interest without additional fees. In the end you will pay the effective interest, which includes all additional costs.

What needs to be considered when comparing credit with regard to creditworthiness?

What needs to be considered when comparing credit with regard to creditworthiness?

As soon as you have entered your loan amount and the desired term above, a selection of individual installment loans appears. Here you can quickly get a good overview of the conditions.

But also note the topic of the 2/3 interest rate. The rate and the interest rate, which are each shown prominently, are ideal options. This means that only customers with an excellent credit rating receive this rate and this interest rate.

The 2/3 interest rate is the condition that the majority of customers actually get. So if the loan calculator has an ideal interest rate of 2%, then those customers with a perfect credit rating can look forward to it. Customers with poorer credit ratings, on the other hand, receive the interest rate as it appears in small print at the bottom of the offer. A credit example can be found there.

You can check your credit rating online in advance and find out whether the ideal offer is suitable for you or whether you have to expect a more expensive loan. 

Nobody can avoid being “readout”. On some platforms, however, the creditworthiness is at least behind. This means that the credit rating does not determine whether you get a loan or not. It should only be noted that the effective interest rate is quite high. In some cases, it may make sense to first improve your credit rating and only then look for a loan.

How high can the credit rate be for certain income groups?

Basically, you can afford the loan that corresponds to the rest of your monthly net income at all costs. At the beginning, you got an insight into the procedure to determine this rest.

Nevertheless, average values can still be used. If you take over the rest of the example – about 15% of the monthly net income may be drawn on the loan – the following maximum credit limits result for the different income groups

How is it with the loan calculator for home finance?

How is it with the loan calculator for home finance?

A mortgage loan is different from mortgage loan loans than a mortgage loan. Because you don’t have a classic term and a classic loan rate like this with a home loan. Rather, we speak of a so-called fixed interest period and a repayment plan.

What does that mean?

  • Fixed interest period: If you take out installment loans, the bank guarantees you a fixed interest rate for the entire term. At its core, this also happens, only that after this period there is usually still a residual debt that you have to finance with a new interest rate.
  • Repayment schedule: You alone decide whether you want to repay 1% of your loan, up to 5% of your loan or even more per year. Only then does the corresponding credit rate result.

For the reason that it is different from installment loans here, you will find a special loan calculator for home finance here. Read exactly how this works on the corresponding page.

In principle, you should also pay attention to the same factors as before with a construction or real estate financing, only differently. You have to put it into perspective much more precisely. If you choose a small installment according to the repayment plan, then you have to expect extreme additional costs and vice versa.

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