Compare Car Loans

A credit comparison provides in such cases numerous offers at much better terms. Another advantage of such a rescheduling lies in the increased planning security, since the interest rate of installment loans is fixed over the entire term, while the interest on the credit line are variable.

Compare car loans

Compare car loans

Motor vehicles are traded at prices that burden the family budget over many years. Even small differences in interest rates on a car loan over a long term make some hundreds of euros difference.

A very cheap car loan at first glance gets the buyer through the banks of vehicle manufacturers. Here are at almost all groups in the market segment of small and compact cars currently auto loans of 1.9 percent APR and less to have. That sounds pretty easy and convenient, car, car loan and insurance from a single source, but the matter has its price.

Car loan from the house bank

Car loan from the house bank

A second possibility of vehicle financing consists in a car loan through the house bank or via a direct bank on the Internet. These online banks do without individual customer service. Here, the borrower has to work out all the information about the car loan itself. The thus saved personnel costs pass on these banks to their customers via a lower APR. These car loans are currently available with interest rates of just under six percent, loan calculator on the Internet help with credit comparison.

With such a car loan, the new and used car customer acts as a cash payer at his car dealer. Since every seller is immediately wide awake, because now ringing cash in the cash register. So motivated it is not difficult for the dealer to grant one or the other percent cash rebate. For example, given the negotiating skills, discounts of 10 percent and more should be possible compared to the recommended retail price.

A car loan is used to finance the purchase of a car. It is used by many buyers and resembles a classic installment loan. However, there are a few differences in the loan rate that you should keep in mind.

What is a car loan

What is a car loan

A car loan is a loan that is used to finance the purchase of a car. Since vehicles are a relatively expensive purchase, such a loan is often used. There are different types of car loans that differ in terms of financing and the type of collateral required. The three-way financing is similar to the classic leasing model. Here, the buyer pays a certain amount of the vehicle, then pays the installments spread over several years and returns the vehicle after the financing expires, finances it or buys it. In the latter case one speaks of a so-called balloon loan. This form of financing is offered by both traders and various banks. Far more often than the three-way financing the installment loan is used. The buyer pays only the installments from the bank until the costs are paid. Since the car itself serves as security, the lending rate here is usually much cheaper. In addition to banks, various online portals also offer classic installment loans, which are tied to car sales.

Advantages of a car loan

Advantages of a car loan

A car loan has several advantages over other forms of credit. So the conditions are usually better than normal installment loans, since the security is great. Thus, even customers who have a weak credit rating, have the opportunity to complete a car loan.

Another advantage is the possibility of down payment. If you pay a certain amount directly when you buy, you can expect much lower rates. The flexibility in financing is therefore very high and offers you a lot of leeway. The disadvantage is only that you can not take advantage of discounts on installment payments. In addition, you must deposit the vehicle registration document as additional security. On top of that, a car loan is a good alternative to the classic installment loan, whereby there are big differences between the different car banks.

Autobanks: the differences

Autobanks: the differences

Depending on the Autobank, there are sometimes significant differences in the completion of a car loan. So there are institutes that require a high credit rating despite the safety of the vehicle. Especially car dealers, who have luxury vehicles on offer, rely on additional collateral and higher rates. Leasing is also an option in many cases. However, auto banks are not always the best choice despite the low interest rates. In some cases, traders offer a so-called cash payment discount, which can only be claimed with a correspondingly high credit. In many cases you can save money, provided the discount is high enough. Here it may be worthwhile to negotiate or directly to claim a car loan comparison. After all, a vehicle is a big investment that you, as a buyer, do not want to pay.

Loan for Student Finance

Regardless of the decision which course of study it should take, at which university and in which city, the question of student financing arises for many people and in many cases a loan is used. But which loans are best for student financing?

The Federal financial aid

The Federal financial aid

First of all there is of course the Federal financial aid (Federal Training Promotion Act). If you have the opportunity to finance your studies along this path, you should be aware of them in almost all cases. It is unlikely that you get better terms from a bank or a regular provider.

A prerequisite for Federal financial aid is that parents do not earn too much money, otherwise they have to finance their studies. But what if the Federal financial aid simply is not enough, because you live in a relatively expensive city, for example? Or if extra purchases have to be made that exceed the budget?
We have found additional opportunities besides the Federal financial aid, to finance the study and to increase its finances.

Our recommendations:

Our recommendations:

When it comes to rather small or medium-sized purchases, such as a boost of new literature or a laptop, especially small and mini credits can be worthwhile. These are not only quickly applied for and paid off, but in many cases also cheaper than the traditional disposition on the checking account.

For permanent or longer-term financing

When it comes to bigger credit, which should help to finance the study in the longer term, it is not always the same providers who are in favor of small loans. 

Risks of financing studies by credit

Risks of financing studies by credit

Whether you can really talk about risks is questionable, but of course students have to be aware of what it means to finance their studies with a loan – and that you just get out of college with a loan that you still have to pay off.

With virtually all providers, the repayment starts some time after the end of the payout period. It does not matter if you are still studying, unemployed or have little money. A deferral is difficult to impossible. And a reduction of the rates is possible only in a few exceptional cases. You should plan well here in any case.

Other alternatives

Other alternatives

In addition to Federal financial aid and classic loans, there are other ways to finance or facilitate the study.

Scholarships as an alternative

Another alternative for students who do not have to repay money at all is through scholarships. However, these are of course limited and bring many conditions with it. For example, there are scholarships that are aimed primarily at particularly strong students or people from difficult social backgrounds. Also, those who are socially engaged may have a chance on a scholarship.

In all cases, you should be prepared to report progress on a regular basis, otherwise you risk losing the scholarship.

Education loan

The education loan, like the Federal financial aid, is a state benefit that is usually used in addition to the Federal financial aid. However, it can also be used independently of this and can offer a low-interest alternative to other loans.

Conclusion on student financing with credit

As mentioned above, the student loan should, if possible, be regulated by the Federal financial aid. But even if this is not feasible, other options remain. One should be very sure that the study is also terminated, because the credit must be repaid in any case, after the study is completed – even if no degree has been achieved.

Personal Loan

Personal loans of lending private investors

Personal loans of lending private investors

Private loans today differentiate between the lending of relatives or acquaintances and the personal loans of lending private investors. When lending under relatives or acquaintances usually a fixed amount is awarded with a term, but without interest. The advantage of having a loan is that you know that person and are aware of their repayment intent. A repayment within the family or between acquaintances is therefore usually relatively uncomplicated.

Loan seekers without a solvent relationship still have the opportunity today to take out a personal loan. For a few years, special providers, especially on the Internet, have been promoting lending between individuals. The principle is simple, private lenders provide a certain sum, which in turn is given to borrowers. In the case of the providers Smava or Auxmoney, credit-seeking persons thus present their credit request for which the amount to be absorbed is intended. If private lenders find themselves, a loan agreement can be concluded. Prerequisite in this case is also a sufficient credit rating and no negative entry in the Private Credit.

Upon approval of the project by the providers, private investors have the opportunity to invest money in this project. The maximum limit of investment is evident in the specific provider. Loan seekers can apply for personal loans at Smava or Auxmoney between 1,000 and 20,000 euros. The terms vary between 12 and 96 months, loans are available from an interest rate of 4.25%.

It should be noted that most investors want to invest in projects that promise a high interest rate of around 15%. For these personal loan investors, the providers provided collateral in order to be secured even in the event of non-payment of monthly installments. Through a complex system of cooperation with various banks, the providers ensure their “investing” customers a high degree of security.

Even self-employed people have the opportunity to get a personal loan. The basic requirement is a minimum of 24 months self-employment, a “clean” Private Credit and the submission of various documents (tax assessment, BWA etc.).