Since the structure of an online loan does not differ significantly from a normal bank loan, it is advisable to write down all aspects in detail beforehand.
An online loan should be well prepared
Experience with online loans shows that, if possible, you should write down very clearly what financial options you have before applying. This includes an overview of all personal income and expenses. It is also important to leave some space for unexpected expenses.
Something can always break unexpectedly in the household or a major car repair swallows up the monthly income. If you have calculated the difference between income and expenditure, you should think carefully about the monthly installments. This makes sense, since most online loans are installment loans with fixed interest rates and installment amounts.
Be sure to compare the offers for online loans
Before deciding on a loan provider, you should compare the offers for online loans as closely as possible. Of course, you also have to know roughly how stable your credit rating is for this comparison. If you have good solvency, you have a permanent job with secure salary entries and no negative entries in the Credit Bureau.
If you are still in the trial period, self-employed or unemployed, have negative entries in the Credit Bureau or are already in arrears with a loan, the credit rating is appropriate worse to rate. When comparing loans, providers write the cheapest interest rates. However, they are only offered if they have a good credit rating. If the credit rating is poor, the interest rates behind the asterisks apply.
Fast online loans are mostly instant loans
If you need the payment of an online loan very quickly, you should select the online loans marked with Best Lender from the offers. An instant loan is a slimmed-down version of an online loan, which usually includes the option of receiving a payment immediately after the application is made.
However, a good credit rating is also a prerequisite for an instant loan. If the bank has doubts about the creditworthiness, an online loan can also have a long payout period. Then there is reinsurance, such as taking out credit insurance.
Credit insurance and fees can make an online loan unnecessarily expensive
Some loan providers always automatically include credit insurance and even fees in their loan offers for online loans. Credit insurance can make online credit painfully expensive, so you should ask yourself whether you really need it. It is a loan repayment guarantee in the event of death, disability or unemployment.
If you already have similar insurance, you do not need this insurance. Credit fees are also no longer common. Before accepting a loan offer, a critical comparison is always worthwhile.