A installment loan is usually taken in an amount between 5,000 and 50,000 USD. It can be used to renovate a home, buy a new vehicle or even buy expensive home appliances or home furnishings. The interest on a installment loan, which is also referred to as consumer credit, are generally well below those of the disposition credit in the checking account. That is why it is usually cheaper to take a installment loan, than simply to overdraw the checking account.
Banks for an installment loan
Anyone looking for a installment loan provider, will often first turn to his house bank. All Filiabanks holding current accounts also offer consumer loans. That’s handy, but not necessarily the cheapest solution. Also banks, to which so far no business connections existed, grant installment loans to new customers.
This can be other branch banks as well as online banks. Another way to get a installment loan is often in connection with certain purchases. For example, many car manufacturers offer very cheap loans through affiliated banks, as do many furniture retailers.
The cheapest installment loan provider
A comparison of different installment loan providers is essential to be sure that you do not have to pay too high interest on a loan. On the Internet, the terms of installment loans from various providers are compared on numerous financial portals. In doing so, loans with the same maturity and the same repayment modalities are examined for which bank the interest rates are most favorable. Although this seems very plausible at first glance, it is unfortunately not.
For these comparisons are based on a customer with good or very good credit rating. Individual creditworthiness, however, is assessed by different banks using different methods. Therefore, only specific loan offers can be compared. The best way to use the comparisons on the Internet for a first preselection and then gets from the cheapest of the installment loan provider offers for his credit.