The eternal duel. Should you go for the classic values in the bank, and the safe framework with a bank adviser who knows you? Or do you have to “dare” to try to achieve better prices? Loans are a very personal thing, and of course you always have to do what feels right for yourself. But we have chosen to make this short article so that you can get to know what the main differences are on bank loans and the so-called online quick loans.
Quick loans have become a popular topic of conversation
If you have previously talked about finances and loans for any family celebration , then you already know that some loan companies have a little blame for it. There is often at least one person from the party who has had a bad experience with a loan business – or who knows someone who knows someone who knows someone – and so on. And if that also fails, then you can just pull out the latest section of the luxury trap, to really figure out how unhealthy and directly harmful a consumer loan can be for one’s economy.
But does that need to be so? The answer is no. Of course, there are some lending companies that do not have clean flour in the bag and that do not play according to the same rules as us others – this is also found in the banking world and even within the mortgage credit industry. And of course, the online world is no different. But often it is presented as if the industry is not regulated at all by anything, and this is of course not quite correct. In Denmark, we have really tight legislation for when and how to run an economic business – or lend a business as it is called. And no matter how you turn it around, the vast majority of market providers are interested in complying with the rules of the game.
Can you get a bad experience? Can you pay more money than you might have hoped for? Yes, of course. But now, no dangerous debt spiral is. Of course, one must always make sure to have reason with them when borrowing money – and this also applies to the bank and when talking about mortgages. But we will actually venture the claim that in many cases it can be both safer, cheaper and more manageable to borrow money over the net than going through the bank.
Don’t bet all the money on one horse
When you go to the bank to ask for a loan, you do not really have a basis for comparison. You only have one price list to assume – namely the bank’s. Therefore, it is very difficult as a general consumer to find out if the interest rate is now also in order, whether the formation costs are just legally high compared to other places, and in general whether the loan is attractive enough for you. With online lending companies you do not have this problem. There are many different suppliers on the market, and this also means that you as a customer have a lot of opportunities. In this way, you can always find a place that suits exactly what you want to pay and which provides the desired service.
But as with all other things, more providers obviously also mean a more unmanageable market. One thing is to compare interest rates – they are usually written in capital letters on the website. Another thing is to figure out what fees and other costs lie. Behind – and this can make a pretty big difference financially. Fortunately, you can use a loan calculator, such as a money247.dk website , which compares loans from many different providers. And one of the biggest benefits of using an online calculator is that here you quickly get to know what it will cost you to borrow all the money – all in all. This means that both interest, foundation fees, commissions and payment fees are counted. And this way you can easily and quickly see which loan is the most attractive for you. In addition, the calculators are also good at saving you a lot of time, as they immediately draw attention to what requirements the loan provider has. It may be that you can have the loan for a maximum of 12 months or that you can borrow a maximum of DKK 10,000 – or perhaps you must be at least 30 years old. If you can see already that you fall outside the category, then there is no reason why you spend time and effort on making an application.
This way, you can find the loan that suits you, faster and easier. And some loan calculators even allow you to enter how much money you want to borrow and how long you want to pay over – or how much you will spend per month. Then the calculator automatically finds a list of the providers that are relevant to you.
So are the loans really as dangerous as they sound?
No. Of course they are not. For one thing, as a consumer you are covered by quite good legislation, and in addition there are no companies that are interested in getting a bad reputation. And with channels like Facebook and trustpilot, consumers have got considerably more to have said when it comes to evaluating a company’s service. But of course it is important to find out the loan that gives you the best conditions and at the lowest price. It is not said that these loans can only be found online – it can certainly be that your bank wants to help you. But it does not change that you at the bank adviser’s office can only see one reality when there are several hundreds on the web to choose from. For example, a good idea may be to get one or two loans on the Internet, and to bring them down to the bank meeting. In this way, you are more prepared and the bank adviser can already see at first glance that there are other institutions that have considered that you are creditworthy. It is not certain that they can match the price in the bank, but if nothing else, you get a little more firing to work with.
We hope that the post has been informative and that it can help you find your way in your next loan.