Guide: How to find the best online loans
When it comes to online loans, in Denmark we have many opportunities to find many different loans. And with many options, there can of course be many advantages – but there is also a great chance that it will be clear to decide what to do. Therefore, we have made this short guide so that you can hopefully be better dressed to borrow money online.
Choose the best loan for you
It may sound crazy, but let’s just start at the end. It is clear that you have to choose the best loan for you, but what may not always be clear is where you find it. Most of us typically know someone in our circle of people who have borrowed money online. It may be a good idea to listen around and see what experiences your friends and acquaintances have with the various loan providers.
If you don’t mind the trouble and would you rather just get started, then you can advantageously start looking a little around the net. And instead of going into each loan provider’s website, you can save both time and effort simply by going somewhere; an online loan calculator.
An online loan calculator is a website where you enter a few information about the money you need. Here you typically write how much you need to borrow, and how quickly you want to pay them back, or possibly what you want to pay off each month. Then the calculator will find the providers that best suit exactly what you need.
In this way, you save a lot of time, as you do not have to run the web thinly, and read the website by website from companies that still cannot offer you what you are looking for. And often these calculators are also linked to the companies’ various online profiles. Here you can, for example, quickly see who has the best rating on different consumer sites, often you can also see how many people recommend precisely the provider you are looking at – and then you can usually also see what it costs you all in all to record loan. And just the last part is important. There can be quite a big difference in what it costs to borrow money around. And even though a loan may look cheap because it is marketed at a low interest rate – yes, it can unfortunately sometimes be that you pay a fortune for fees. Here you get an easy and clear overview of what you can expect to pay back.
See if you can borrow for free
If you sniff a bit of the headline here, then we understand you well. It is probably few of us who believe that you can actually get things for free. And as the saying goes; “Good things are not free and free things are not good”, so it can actually turn out to be directly reverse when it comes to loans. In particular, smaller consumer loans can often be quite easy to find for no money. Of course it should not be interpreted as not having to pay the money back. But often you can find a loan 30 days online , which you do not need to pay interest on. Then it suddenly becomes easy and cheap to borrow money!
It can also be possible in some cases to borrow money from those who ultimately need them. Understand in this way that if you have to borrow money for a new computer – then you can surely find a dealer offering financing. And since there is so fierce a competition in many different industries, you can also often find financing agreements that are both interest-free and fee-free. In this way, it suddenly becomes free to borrow money.
Know how much to borrow
Whether you find a place where you can borrow for free, or if you just have to pay interest just like everyone else, then it is important that you know how much you really need to borrow. On the one hand, make sure not to borrow too much, but on the other hand, make sure you also borrow enough. Does it sound confusing? So let’s try to scratch it up sometime.
If you borrow too much, you can sometimes risk paying more interest. It is gradually a rarity, but there are, however, loan providers who do not allow you to settle a loan in advance. This way, you get to pay overpriced for some money you may not need.
And if you, for example, have to buy something for 15,000 kroner, and instead borrow 20,000 kroner, then there is a high probability that the last 5,000 kroner will be “scratched away”, and then you just end up with an extra debt, on something it doesn’t was needed.
If you turn the calculation over, it is also important that you borrow NOK money to buy what you need. To use the above calculation again, it is of no use to borrow 10,000 kroner if you know you have to spend 15,000 kroner. Here you end up with a loan that you have to pay interest on, and either not be able to buy or pay what you need. In the end, you may have to have to borrow a new loan, which will result in additional costs in the form of payment fees and formation costs. Therefore, it is important that you are fully aware of how much you need to spend, how much you can pay – and ultimately how much you need to borrow.
We hope that you have now been better dressed to make the right choices when you go out and borrow money. And remember that if you are in doubt as to whether an offer is right for you, then it is perfectly OK to ask a friend – or possibly your bank. Then you are sure that you always get the best loan.