Introduction:
A Consumer credit loan is a fast and flexible financing option for various everyday loan needs. Whether you’re applying for a loan for a kitchen renovation or unexpected car maintenance costs, an unsecured consumer credit is an easy option.
In this guide you will find everything about consumer loans and how to apply for them. Check out tips for comparing consumer loans to find the cheapest option.
What is consumer credit?
A consumer credit is typically a loan granted to an individual in the amount of a few thousand euros. It is an unsecured loan that can be applied for directly online through banks or financial institutions.
As the name suggests, consumer credit is intended for various purchases and everyday expenses. A consumer credit does not require collateral or guarantors, so applying for it is simple and quick.
Consumer credit in a nutshell:
- Fast and easy unsecured loan
- Can be used freely for expenses and purchases
- Repayment period typically 1 year – 10 years
- Interest rates and costs vary depending on the loan amount, the bank and the applicant
Consumer credit is an easy and fast loan option for all everyday expenses. It is more expensive than a secured loan in terms of interest, but you can use it as you wish. You get the money in your account.
In addition to one-time consumer loans, there are also various continuous loans on the market. For example, credit cards and flexible loans offer long-term credit that can be withdrawn as needed.
Competition for consumer credit:
There are dozens of different lenders and banks on the market that offer their customers unsecured consumer loans. To get the best possible interest rate, it is important to compete for loans.
By competing for consumer credit, you ensure that you get the most affordable interest rate and other loan costs. The lower the APR, the less you have to pay back the excess.
This is how you can apply for a consumer loan:
Search for a loan offer from several places
Banks and credit providers always determine the loan interest based on a personal credit rating. The loan offer you receive always depends on your financial situation, such as income and work situation.
By making a loan offer in several places – either by applying for a loan in several places or using a loan competition tool – you make loan providers compete for you.
Applying for a loan doesn’t bind you to anything yet, and you often get a loan offer from lenders very quickly. Competing is therefore really not difficult or even very time-consuming.
Consumer adjustments.
Compare the loan offers you receive
When you have received loan offers from different places, the next step is of course to compare these offers. When comparing consumer loans, it is important to pay attention to all loan costs:
- To the interest rate of the consumer credit
- For the establishment fee
- For accounting expenses
- To the real annual interest rate
The actual annual interest rate is often the most reasonable point of comparison, as it directly tells you all the costs of the loan on an annual basis. Also, note that your loan term affects the total cost significantly.
Choose the best consumer loan for you and sign the loan agreement:
When you have compared consumer loans and found the best option for you, it is time to sign the loan agreement. so it is easy to get the loan money into the account.
Consumer loans are quick loans that allow you to get the money into your account right away without any additional adjustments. Since there are no collaterals, you can also use the loans as you wish.
Repayment of the consumer loan:
Consumer credit is usually repaid in monthly installments. The size of the monthly installment naturally depends on the requested loan amount, the loan interest rate, and the loan period.
Please note that it is always possible to pay off a consumer loan faster than agreed. This way you can shorten the loan more and save on loan costs.
Repayment of the consumer loan takes place by the instructions of the loan provider. Often, the payment free months.
Always remember to size the monthly installment in such a way that its repayment does not make it difficult for you. Also, consider loan protection if you want to ensure loan repayment even in the event of unexpected unemployment or illness.
Fast consumer credit – money immediately in the account:
A consumer loan is one of the fastest options for a sudden need for a loan. The consumer credit can be paid almost immediately into the account, so it is also suitable for covering unexpected expenses.
Quick consumer loans are also commonly called pikavip. Small loans with relatively high costs are typically paid the fastest.
When you want to apply for a loan as soon as possible, you should apply for a loan in several places at once. The practices of different credit providers vary – from one you can get a consumer credit into your account on the same day, while at another place it takes a little longer for payment.
When choosing a fast consumer loan, take these into account:
- Send the required documents quickly
- Sign the loan agreement as soon as possible
- However, remember to compare costs
- Don’t take out a loan for anything
Costs of consumer credit:
Of course, there are always costs associated with consumer loans. Banks and credit providers protect themselves from credit risks by charging interest on loans based on the customer’s credit rating.
Credit providers often list the costs of a sample loan on their website. You can get a good idea of the price level from these – note, however, that the actual interest rate offered always depends on the person.
We listed all the costs related to consumer loans below.
Loan rate:
Interest is usually the most significant item of expenses. The interest rate is directly affected by the applicant’s living situation and income level.
For example, it is difficult for a student to get a loan at an affordable interest rate, but a middle- or high-income working person can get it quite easily. It is also possible to apply for a consumer loan together with a parallel applicant, in which case the interest rate can be lower.
The interest on the loan is always charged annually according to the remaining loan amount. Interest is usually paid every month, but sometimes you can also get interest-free months for the loan.
Other costs related to consumer credit:
However, loan interest is not the only cost associated with loans. In addition, banks and credit providers collect e.g. credit establishment costs, account management fees, and various possible delay costs.
- The account management fee and the establishment fee are always charged to everyone. Certain statutory maximum amounts have been determined for these, which vary depending on the loan amount.
- Other costs, such as payment reminders, may be charged as necessary. However, when the loan is repaid on time, no additional costs are charged.
It is always important to check other expenses related to the loan. These are usually formed purely based on the price list based on the loan amount. The loan applicant’s information, therefore, does not affect costs other than interest.
The total cost of the loan:
The total cost of the loan is formed when all costs are combined and the loan payment period is taken into account. The longer the loan payment period is, the more interest and other costs accrue to be paid.
In this way, the actual amount repaid depends quite a lot on the loan term. Please note that you can always repay the loan faster than agreed, in which case you can save on loan repayment costs.
APR:
The actual annual interest rate tells you all the loan costs and interest on an annual basis. It’s a great metric if you want to compare two different loan offers.
The actual annual interest rate is statutory information that must always be presented in connection with a loan offer.
Various consumer loans:
Not all consumer loans are the same. There are both one-time consumer loans and various continuous credit agreements on the market. The available loan amounts and terms also vary depending on the products.
The loan amount of the consumer credit:
Before applying for a loan, it is important to know how much loan you want to apply for. Different c thousands.
You can apply for a consumer loan from different lenders within the loan limits. So take into account the minimum and maximum loan amount when filling out loan offers.
One-time loan or continuous consumer credit:
Consumer loans are divided into both one-time loans and continuous credit agreements. An on the market –e loans.
A one-time consumer loan is suitable for all specific loan needs. If you need a loan for, for example, a kitchen renovation or to buy a car, a one-time consumer loan is usually an easier and cheaper option.
A continuous credit agreement is a suitable option when you know that you will also need financing in the future. For example, within the framework of a credit agreement in the form of a credit card or credit account, you can take out an additional loan whenever you need it.
A limit or maximum limit is always associated with a continuous credit agreement. Moreover, you cannot withdraw the loan at once.
Loan term:
The loan period offered varies. A longer loan period is typically taken for a larger loan, and a shorter one for a smaller one.
It is important to choose the loan term in such a way that it fits your finances. It is also good to take into account that it is always easier to repay the loan faster than agreed, rather than asking for an additional loan period.
Loan provider:
The lender also has an impact. You shouldn’t necessarily choose a consumer loan purely because of the price if you want a loan from the most reliable loan provider
There are many differences, for example, in terms of the quality of customer service. When you will probably be handled better.
What can consumers use for?
Unsecured consumer credit is a form of loan that can be used in almost any way. You can always get product.
There are plenty of examples of uses for unsecured consumer credit. We collected a few popular options below.
Unsecured consumer credit as a car loan. Consumer ectly in your own name as a cash transaction. An unsecured consumer loan is really convenient for this purpose, but often not the most affordable option.
A from a private person. As a used car loan, it’s great, because you get the money directly into your account and you can handle the payment to the car seller yourself.
Consumer credit for renovation. Bathroom, kitchen or even cottage renovations are expensive projects that often require financing. An unsecured consumer loan is an easy option that you can apply for alone or together with your spouse.
As a renovation loan, a consumer credit is a simple option, as no collateral is needed. You can withdraw the loan money immediately to the account and use it to cover renovation costs.
Consumer credit for unexpected expenses. unts can be paid into the account even during the same day.
Even if the need for a loan is urgent, you should still not forget to compare loans. Consumer loans should be tendered so that you don’t pay extra for nothing.
Consumer credit with a continuous loan agreement. A continuous credit agreement is suitable for you who want flexibility in everyday financing. For example, a credit card or credit account is suitable for the constant need for financing to balance expenses.
You can always withdraw the loan as needed, when you need it. The personal that can be taken out. When considering an ongoing credit agreement, it is good to consider all current expenses.
When is a consumer credit not suitable?
However, consumer credit is not suitable for everything. Although in many situations an unsecured online loan is a good option, it is not suitable for everything.
You should never take out a loan on the spur of the moment without understanding the risks. When the loan must be repaid. It is also important to calculate the total costs.
Even the biggest purchases cannot be financed with a consumer loan. For artment to be purchased is used as collateral. As a consumer loan, a mortgage would be significantly more expensive.
Consumer credit application conditions:
Applying for a consumer loan is subject to certain marginal conditions, which vary from bank to bank and credit provider. Typically, for example, the age limit varies somewhat – some offer loans to 18-year-olds, while others only offer it to 25-year-olds and older.
You conditions are met:
- You are at least 18 years old. Many places require an even higher age.
- You have a regular monthly income. The exact requirements vary.
- Your credit information generally needs to be in good order. In someor the loan.
Remember to always check the application conditions of the credit provider or tenderer you choose. The exact that you can be granted a loan.
Tips for applying for a consumer loan:
Applying for a consumer loan online is really easy. However, you can improve your chances of getting a loan cheaply by following certain tips. We collected a list of tips for applying for a consumer loan.
- Apply for a consumer loan from several places – competing is worth it
Consumer loans should always be competitive. When you apply for a loan from several places, your chances of getting a loan improve and you can easily compare costs.
Competing is easy, and you can save a lot of money with it. With us, you can compare different lenders and costs.
- Always fill in your information correctly
In order to avoid unnecessary adjustments, you should always fill in the information correctly. Lenders typically ask for various documents, such as pay stubs, to confirm your income level.
Your identity is also usually verified with online banking credentials. So be careful and fill in the information correctly to avoid delays.
- Consider a parallel applicant
In many places, you can also apply for a consumer loan together with another applicant. With a parallel applicant, your chances of getting a loan improve, and you can also get a loan at a better interest rate.
You should especially use a parallel applicant if you are applying for a loan for a common purpose: for example, for renovations or a shared car.
- Get to know the various loan products in detail
There are many types of loan products on the market. Not all consumer loans are the same, but some may include, for example, continuous contracts or limits.
Always familiarize yourself with the various loan products and choose the consumer loan that best suits your needs.
Consumer credit for consolidating old loans:
Consume old loans. If you have old high-interest payday loans and loans, you should combine them with one more affordable loan.
Almost all credit providers offer a separate alternative to a consolidation loan. You can choose when applying for a loan that you want to combine loans, which makes it easy.
Loans should be tendered from time to time. The interest rate situation has changed over the years, and today you can get a loan at a lower price than a few years ago. Your changed work situation can also improve your situation on the loan market.
Consolidation of old loans with consumer credit:
- Step 1: Apply for a consumer loan as usual from the lender. State in the application that you want to combine your old loans.
- Step loan.
- Step 3: You pay back just one loan.
By combining old loans, it is often possible to get significant savings. Various lo be paid off.
Who grants consumer loans?
Consumer loans aaccordance with the law.
The easiest way to apply for a consumer loan today is online. You can apply for a loan either directly from the credit provider or through a third-party bidding tool.
Here are some credit providers and bidding tools:
- Freedom Finance
- Zmarta
- Monetary institution
- Balance
- Ferratum
- Komplett Bank
Applying for a loan through a tendering company:
Applying for a loan through a tendering company is often almost as easy as directly through a credit provider.
Bidding companies usually do not charge the customer any costs, so bidding does not cost anything extra. The tendering company will directly ask you for the necessary loan application information, and forward it to the cooperating banks.
After submitting a loan application, you will receive a list of offers from different banks. The r company stage.
Summary:
A consumer credit is a simple and easy loan that does not require collateral or guarantors to apply for. Today, you can apply for a consumer loan completely according to your own needs, from a few hundred euros to tens of thousands of euros.
When choosing a consumer loan, it is important to pay attention to loan costs, which can vary significantly. It is also important to consider the loan term and other characteristics of the loan.
An unsecured consumer loan is flexible, and it is one of the most flexible options. You can apply for the amount that suits you, with a schedule that suits you.: