Do you want to compare loans online in order to make a good choice? It is wise to at least find out where you pay the best interest and where the term fits in well with your wishes. In addition, you can compare loans by also paying attention to the additional conditions, for example with regard to additional repayments and what happens when you die during the term.
Compare loans based on interest
Do you want to compare loans based on interest? Then it is wise to take a good look at the APR, the Annual Cost Percentage. This represents the actual costs per year and is usually slightly higher than the interest itself. This has to do with the fact that you pay the interest per month, which creates an interest-on-interest effect. You can compare loans by checking online where you pay the most competitive interest. With a credit of $ 10,000, you can easily generate a difference of interest of 0.5% per annum.
Compare loans based on duration
You can also compare loans based on the term. In fact, it is important to also take a good look at the duration. Too short a term ensures high monthly costs, a too long term makes the costs rise unnecessarily. Too short a loan term requires high repayments per month. If you want to repay $ 10,000 in a year, for example, you pay more than $ 833 in repayments each month. Do you choose the duration on the other hand too long? Then you will continue to pay interest on a credit for a long time, which you could have long since had.
Furthermore, it is wise to take into account any other conditions, you can compare loans by, for example, looking closely at the options for extra repayments. With a revolving credit this is usually quite possible, with a personal loan you are bound by conditions. For example, can you pay 10 – 20% extra per year? If you have a windfall, it is of course nice to get rid of the loan faster. You can therefore compare loans under such conditions, just like the conditions that apply when you die during the term.