There are many situations in life where you need a loan. If you are planning to build your own house, are planning an expensive training program or want to buy a new car, your own reserves are often not enough. A loan can help finance such a project. However, the conditions for a loan differ greatly depending on the provider. Before you make a decision, find out about the offer in detail. The following five tips will help you find the best loan for your needs.
How you can find the best loan: tips from the experts
Applying for a loan is not difficult in itself. You can go to a bank and get a loan there. Of course, this assumes that your creditworthiness is correct. There are also numerous online offers that can often offer you better conditions than banks.
There are many different ways for borrowers to borrow different amounts of money. Small loans in particular are very popular for bridging financial bottlenecks or making special purchases. Taking out a loan can also make sense to repay an old loan – namely when the conditions are better elsewhere. After all, you don’t want to pay more than necessary.
The large number of offers makes it tempting for borrowers to quickly apply for a loan. You can choose the best one from the offers and find what best suits your situation and ideas. At the same time, it can be difficult to pick the right one from the sea of providers. Not every provider is serious – and not every supposedly great offer is really as good as it seems at first glance.
High interest rates and hidden costs can make a loan less lucrative. If you find out too late that you made the wrong decision, you will lose cash. It is all the more important that you know what aspects you should pay attention to when choosing a loan. With the following five tips from eny Credit you will find the offer that is most attractive to you and that you are really satisfied with.
1. Calculate exactly: How much must the loan amount be?
Before you can look more closely at the terms of various possible lenders, you need to know what loan amount you need. The offers of the lenders differ greatly depending on how high the loan should be – between different providers, but also from the same provider.
You should calculate the necessary amount as precisely as possible. What do you need? And what can you pay off in what period? Keep in mind that you will still have to pay the monthly interest payments even after the purchase for which you have taken out the loan has already been made. Which costs can you realistically cover each month – and if necessary also over several years?
It makes sense to choose a loan amount that is just enough for you. If you borrow more than necessary, the cost of repaying the loan will increase unnecessarily. On the other hand: If the loan is too low, in the worst case you will have to take out a loan again at a later date.
Therefore, when considering, consider possible financial needs in the future. Multiple loans are usually unnecessarily expensive. Finding the right balance in the loan amount requires detailed considerations for which you should take enough time.
2. What is the interest rate?
One of the main differences between different loan offers concerns the interest rate. This varies depending on the provider, but also depending on the amount of the loan from the same provider. The Swiss Federal Council has set a maximum interest rate of 10 percent for consumer loans until the end of 2019.
In this context, lenders are free to set an interest rate variably. The effective annual interest rate is particularly important to you as a borrower. The effective interest rate means the total cost of a loan. This will make it easier for you to calculate the actual cost of a loan.
Many banks and other lenders initially only offer a possible range of interest rates in their offers. Which interest rate would actually apply to you depends primarily on your creditworthiness as a borrower. The interest may then be significantly higher than you thought at first glance.
The interest rates that lenders charge for the repayment of the loans fluctuate strongly in some cases. Because of these big differences, a comparison of the respective offers is very worthwhile. In many cases, online loans in Switzerland are a very good choice. The conditions are often the best here. But also keep in mind: the cheaper the loan, the more difficult it is to get it. You should be aware of that.
Only apply for a loan if you are convinced that you can get it. Otherwise, if you are rejected, you risk being entered in ZEK, the Swiss central office for creditworthiness information. This can be a problem if you want to get a loan elsewhere. This tip only applies to loan applications. Non-binding inquiries have no effect. Rather, they help you find the right loan.
3. Determine the correct term for the loan
In addition to the loan amount, the term of the loan also plays a significant role when it comes to costs. The faster you pay it back, the cheaper the loan will be. Such flexible loan repayment is available to you under the Swiss Consumer Credit Act.
Which term makes sense for a loan depends primarily on the amount of the loan. It is best to pay off small loans within a few months to avoid unnecessary costs.
Larger loans, on the other hand, are usually paid off over several years. The monthly charge is higher for loans with short terms. Loans with long terms have correspondingly lower monthly installments, but it takes longer for the amount to be paid off again.
Consider this financial burden that comes every month before you choose a lender. When can you probably repay the loan? Also if you want to save and would therefore prefer a short term – it must also be feasible. If this is the case, the shortest possible term is usually recommended because the total cost of the loan is then lower. It’s best to repay the loan as soon as possible to save costs.
4. What are the conditions in detail?
Some offers seem too good to be true. Maybe they are too. Be sure to take a close look at the details of a loan offer. What are the conditions for repaying the loan? Familiarize yourself with any eventual costs, even if you think they won’t come to you.
The interest costs initially advertised by a lender are often the best possible rate. In fact, reality can differ. You should also clarify what you can expect if the loan is canceled early.
A fee for a final invoice is usually due. How much is it? Is a break in payment possible under certain conditions? How flexible are you in repaying the loan? It is important that you are as flexible as possible when repaying your loan.
The possible hidden costs of a loan, which many borrowers do not deal with as precisely, also include reminder fees and interest on arrears. Clarify in advance: What do you have to pay if you fail to meet your contractual obligations on time? If interest rates are not paid, you may also be entered in the ZEK register, which may make it more difficult or even impossible to take out additional loans.
5. Take care of a loan early
Sure, sometimes it has to be quick and you urgently need money. But it usually doesn’t go that fast. This is ensured by the applicable 14-day right of withdrawal, which you can make use of if necessary. You will not receive any money during this period. This also stipulates the consumer credit law.
In any case, hasty credit decisions are usually the ones that borrowers later regret – because they have not dealt with the conditions in detail and then find that they pay unnecessarily much. Take your time to make your selection. Compare several possible lenders. Let everything go through your head in peace. In the end, you make an informed decision that is the best choice in your situation.
The best conditions with the eny Credit personal loan
Do you need a loan to purchase a property? Do you want to finance your next car – or do you need money to renovate your house? In such situations, you often cannot avoid taking out a loan. Then it is important that you have the best conditions for your loan in order not to spend more money on the loan than is necessary.
The eny Credit personal loan offers you flexible terms. Choose a term between six months and seven years. The loan amount of our loans ranges from $ 1,000 to $ 120,000. We also offer you an unbeatable price-performance ratio. Because we only offer our loans online, we have less costs. This reduces the administrative effort for us and the structures of our company are leaner. This way we save costs. We pass this on to our customers – with conditions that are second to none.
Our interest rate is unbeatable
The cheapest interest rate for our loans is 4.5 percent. The maximum interest on your loan is 8.9 percent. In contrast to other providers, our maximum interest rate is never over 10 percent. You can find out how high the interest is in each individual case through a non-binding inquiry. If you apply for a loan from us, it’s quick and flexible. We know that sometimes the need is very urgent. Another plus point of eny Credit personal loans: The loans can be paid off early without incurring additional costs for our borrowers.
Even if you are interested in possibly replacing an old loan with suboptimal conditions, we offer you the best conditions with the eny Credit personal loan. With an eny Credit personal loan you can save cash every month – and invest your money where it really helps you.
The application for a loan is easy on our website. It only takes five steps. First, you decide what amount you need. You will then be asked to provide some personal information so that we can review your application and make you an offer.
You also state the amount of your monthly income. It is also worth knowing what expenses you have so that we can better assess your creditworthiness. Then everything is done for you for now. Now it’s our turn. We will then send you a non-binding offer in the next step.
Request a non-binding offer for an eny Credit personal loan now. Benefit from our excellent price-performance ratio and let our favorable conditions convince you. With eny Credit you can manage your next investment – with a fair and transparent loan that is tailored to your needs.