Bank lending is changing almost daily. Keeping track of this is often a challenge for borrowers. Remedy the free and independent loan calculator. After entering the framework data for the desired loan, the software automatically calculates a monthly repayment installment and the loan conditions.
How is the credit form completed?
Long gone are the days when borrowers receive the best credit terms at their house bank. Direct and online banks enable uncomplicated and above all cost-effective borrowing in the network. However, the market has grown strongly in recent years, allowing borrowers to borrow from a variety of banks.
The loan calculator keeps track and compares the current loan conditions with the cheapest credit institutions. To get a loan, users must complete the following four simple steps:
- Meet minimum requirements
The later loan application can only be granted if borrowers meet certain conditions. In addition to the age of majority, particular care is taken to ensure that the credit rating is sufficiently high (no negative Private credit, no ongoing collection payments).
- Enter desired loan
In the second step, borrowers fill in the loan form. All that is needed is information about the loan and specifically not the person of the user. In addition to the amount of the loan, borrowers must enter the purpose and the loan term in order to calculate the loan.
- Calculate credit
The credit comparison is started with a simple mouse click. Within a few seconds, the software automatically calculates which bank offers the most favorable interest rates for the individual loan application.
- Complete loan application
Of course, the actual application for the loan is not yet completed. Borrowers must submit a proper loan application to the respective bank. For this purpose, the loan calculator with a link directly to the website of the bank.
What advantages does the loan calculator offer?
Whether in the supermarket, in the clothing store or when buying a car – consumers are constantly comparing prices to save money while maintaining the same performance. On the subject of credit, the will to save but, paradoxically, often and the loan application is made at the house bank. But even better, especially when borrowing can be saved by comparing a lot of money. Since it is hardly possible to compare the offers of all banks manually, a loan calculator is used. The advantages of the software are manifold:
- The use of the calculator is free
- A comparison saves money
- Condition requests are anonymous
- The loan calculator automatically indicates the monthly charge
- By changing the values, borrowers quickly find their preferred loan
- Unlike the bank consultant, the software is independent
In particular, the aspect of independence is important. Anyone who agrees to a conversation with a bank consultant will only receive an offer from a bank. To stay with the everyday example: Who would buy a car after he has visited only a single used car dealer? It should be noted that not all credit calculators in the network always operate independently. If the software recommends a provider that is not the cheapest, the operators of the computer usually receive a high commission for the credit brokerage.
In addition, the loan calculator even has an indirectly advisory function. By directly indicating the monthly repayment installment, borrowers can decide if they can handle it at all. If this is not the case, either the repayment term is increased or the loan amount is reduced. Subsequently, the comparison computer can be used again to have the credit calculated.
Is the cheapest provider really always the best?
Basically, interest rates are the deciding factor in borrowing. The following aspects can also play a role:
Especially with longer credit periods, it may be useful if loans can be repaid early. If the financial situation of the borrower changes in a positive sense, the special payments can save a lot of money.
- repayment breaks
Conversely, repayment pauses offer the option of pausing the monthly repayment installments for a period of time. Although interest must continue to be paid, which makes the loan more expensive than planned, in the case of financial constraints, such arrangements can be a viable alternative.
- Credit-dependent interest
The loan calculator anonymously asks banks which terms are to be used for the loan requested by the borrower. In individual cases, the actual interest rates can easily deviate from this, because credit institutions always assign interest on the basis of creditworthiness. Basically, however, the cheapest banks in comparison also offer the best credit-based interest rates. However, it may be useful to make a loan application to more than one bank.
Conclusion: uncomplicated and fast on the best terms
The operation of the loan calculator is simple: Borrowers enter the repayment term, the desired loan amount and the purpose in the credit form and then start the calculator with a mouse click. This then shows independently and anonymously the banks, which would give the best interest for the loan.
It is advantageous that the loan calculator can be used as often as, for example, if the calculated monthly repayment rate is too high. The best credit institutions should then be checked by the borrower shortly on the possibilities for special repayment and repayment pauses. Subsequently, a loan application can be made on the website of the banks.