The MCB has promised the lowest interest rates. Our loan comparison keeps the interest rate promise. With one click and a maximum of three selection options, we will lead you to a loan with low interest rates.
Comparing for free and saving interest doesn’t mean giving up good advice. Our interest rate advisor reveals which loans are particularly cheap and what is important for the bank.
Low Interest Loan – Find a Provider
Virtually all credit institutions advertise with the low-interest loan. But, it is not only the choice of the right loan provider that decides about the low-interest loan. The choice of a suitable loan comparison can be just as crucial. Special interest rates for applications for certain loan comparison offers are no longer uncommon. In addition, not all German citizens are equally qualified for low-interest loans.
Creditworthiness through the score – effect on loans
The decisive factor in lending and often having a clear impact on the interest rate is personal creditworthiness. How good the personal creditworthiness of the individual is can be guessed at rather than actually substantiated. It is the scoring providers’ business secret which precise characteristics influence personal creditworthiness and how the individual characteristics are weighted in the score. In 2014, the Federal Court of Justice dismissed the lawsuit against private credit checker regarding the transparent disclosure of all data relating to the assessment and its weighting.
Nevertheless, there are clues. In the score, comparative data and personal experience with the prospect are processed. Exactly which individual experience values are saved at private credit checker can be asked once a year. The private credit checker self-disclosure is free of charge. It is also known that certain professions are considered to be higher or lower credit risk.
Employer – indicator of creditworthiness
Officials and employees of the public sector can look forward to a “credit rating bonus” from the employer. B-tariff credit used to be something of a guarantee for low-interest loans. Today it is no longer clear from the name which loan product is the cheapest for civil servants and other public servants.
Best credit rating, lowest interest rate:
In the loan comparison, applicants privileged by their professional position and secure income choose loan offers at credit-independent loan interest. If the actual creditworthiness is as good as it can be assumed, the interest rate-dependent interest pays off through particularly favorable conditions.
Favorable interest rate for normal creditworthiness:
For people with normal creditworthiness, it is the interest rate offer that is independent of creditworthiness, behind which their loan is concealed with low interest rates. The term “independent of creditworthiness” means that every borrower who is basically qualified for the offer receives the same interest rate.
Credit risk through no fault of your own:
Temporary workers can not only cost employers the chance of low bank interest rates. The choice of employer can even completely rob them of their credit opportunities. The “hire and fire” in temporary agency work has resulted in some credit institutions generally refusing to grant loans to temporary agency workers. At least, a closer look and an interest rate adjusted to the credit risk must be expected.
Low interest rates – loan amount and term
Small loans, between 1,000 USD – 3,000 USD with terms between 12 months – 36 months correspond to the most common loan requirements. Small loans are often referred to as instant loans because the loan approval is decided in a simplified procedure. A credit decision is made almost in real time. In connection with the ID check via Videoident, payment is made to various online providers within 48 hours of submitting the application.
But the small loan is not just easy to apply for and is quickly in the account. It is a proverbial example of low interest loan. Only small installments are payable for small loan amounts. This has a noticeable effect on the loyalty to repayments and thus on the interest offers. Borrowers are financing 3,000 USD today (as of April 2016) at an effective annual interest rate of 1.99 percent independent of creditworthiness. For comparison, low-interest loans of the medium order of magnitude only start at 3.89 percent effective interest rate regardless of creditworthiness.
The term has less impact than a year ago on the loan with low interest rates. If, for example, a loan amount of USD 10,000 is financed over 60 months, the loan costs 3.89 percent effective interest. In contrast to the past, the interest rate remains the same if you finance for 72 or 84 months. The accustomed interest rate jump for long-term financing via consumer loans only arises from a term of 96 months.
Financing risk credit at low interest rates – realistic?
In the event of a poor credit forecast by the score, regular banks reject any credit request. The low profit margins with consistently low interest rates leave little scope for experiments. The score is by no means infallible. The inclusion of comparison groups does not always give a correct picture. Many a loan request that was rejected today would have been approved before the introduction of the automation system for lending.
The manual credit check shapes the image of modern risk bank credit. A loan with low interest rates remains possible, since the risk loan is more often offered depending on the credit rating. If the score lies “completely in the meadow” with its valuation, low interest rates at market level compensate the borrower. If the risk is justified, then it will be noticeably more expensive to borrow from the specialist bank.