The advice of so-called financial experts everywhere is to be read, in which there is an urgent need to finance long-term investments with the help of a loan, right now. No question, therefore, that one can make all the following statement: mini-interest everywhere! But stop: mini-interest rates do not apply everywhere, because the lender does not benefit from this much-praised historical low-interest phase. Quite the opposite: to date, the effective interest rate for a lender can be significantly higher than 10 percent per annum. So it is close to thinking in such a mini-interest rate environment about which alternatives there are to the lender. In this article we present the 4 Best Credit Alternatives to the lender:
1. The rates for credit, Often only half as expensive
Probably the best Alternative, because at any time can be documented via appropriate comparison portals, compared to the overdraft credit is the classic installment loans. As a rule, interest rates on a installment loan, be it in the Form of an online loan or even a branch loan, are often only half as high. In some cases, a few banks even charge only a quarter of the usual discount rates. However, it should be noted that more and more banks make the amount of lending rates dependent on the creditworthiness of the potential borrower. If there are doubts about the creditworthiness of the credit check, the credit can therefore also quickly double the cost. In principle, it is therefore advisable to look around for installment loans with a fixed interest rate. For example, borrowers see from the beginning what costs they are facing. Another advantage: in contrast to the Lender, whose variable interest rates can rise in the short term, the terms of the installment loan are fixed immensely.
2. If it must go fast: the small loan
If only a small amount is needed and this must also be available quickly, then the small-loan or micro-loan is a very attractive Alternative. Mini loans are generally intended for liquidity shortages, for example, when an unforeseen car repair is missing. Due to the low loan amounts and short loan terms, interest rates remain within a very manageable framework. The fast repayment of the small loan thus enables low loan interest rates.
3. The credit card: interest free shopping
Also, credit cards can offer for a certain period of time, the opportunity to use interest free a credit for a purchase. So-called Charge cards offer this possibility, because they charge for a credit taken over the card for a certain period of time no interest. This is due to the fact that in the case of Charge cards, sales are only debited from the current account once a month. What in plain text means: if at the beginning of the month with the credit card a good or service is paid, you get in effect until the end of the month an interest-free credit.
4. The dealer loan or Zero-percent financing
The dealer loan, better known as zero-percent financing, which is offered mainly by furniture stores, department stores and car dealers, is another Alternative to the expensive Lender. However, it is important to be cautious about zero percent financing. Because unfortunately, often lurking in the small print of the credit agreement conclusion or account management fees, which can quickly make a usury loan from the supposed bargain interest. It is not without reason that consumer protestors always warn against these dealer loans. In this case, it is necessary to check whether the bottom line is not perhaps better to buy the selected product using one of the other 3 Credit Alternatives.