Everything speaks of the historically low interest rate in the credit system. Everywhere the advice of so-called financial experts are read, in which urgently advised to finance now, long-planned investments with the help of a loan. No question, then, that you can put up the following statement: Minicenses everywhere! But wait: everywhere, mini-rates are not, because the credit line does not benefit from this much praised historic low-interest phase. On the contrary, to date, the effective interest rate for an out-of-date loan can still be well over 10 per cent per annum. So it makes sense, in such a minicense environment to worry about what alternatives there is to the credit line. The 4 best loan alternatives to the credit line are presented in this article:
1. The installment loan: Often only half as expensive
The probably undoubtedly best alternative, because at any time verifiable via corresponding comparison portals, in comparison to the discretionary credit is the classic installment loans. As a rule, the interest rates for an installment loan, be it in the form of online credit or branch credit, are often only half as high. In some cases, a few banks even charge only a quarter of the usual disbursement interest. However, it should be noted that more and more banks are making the level of lending rates dependent on the creditworthiness of the potential borrower. If there are doubts about the creditworthiness of the credit check, the loan can cost twice as fast. In principle, it is therefore advisable to look for installment loans with a fixed interest rate. Thus, borrowers see from the beginning, which costs come to them. Another plus point: In contrast to the credit line, whose variable interest rates can rise in the short term, the terms of the installment loan are fixed immutable.
2. If it has to go fast: the small loan
If only a small amount is needed and this must also be available quickly, then the microcredit or mini loan is a very attractive alternative. Mini loans are basically intended for liquidity bottlenecks, for example if an unforeseen car repair is required. Due to the low loan amounts and short loan terms, interest rates are kept within a manageable range. The quick repayment of the small loan thus allows low loan interest.
3. The credit card: interest-free shopping
Even credit cards can offer for a certain period of time, interest-free to use a loan for an acquisition. So-called charge cards offer this possibility, as they do not charge any interest for a credit drawn on the card for a certain period of time. What is the fact that with charge cards the sales are debited only once a month from the current account. What in plain language means: If at the beginning of the month the credit card is used to pay for a good or service, you will end up with an interest-free loan until the end of the month.
4. The dealer credit or zero-percent financing
The dealer loan, better known as zero-percent financing, which are mainly offered by furniture stores, department stores and car dealers, represents another alternative to expensive credit. But especially with the zero-percent financing, it must be approached with some caution. Because unfortunately often lurk in the fine print of the loan agreement or account maintenance fees, which can quickly make a usurer credit from the supposed bargain interest. Not without reason consumer advocates repeatedly warn against these dealer loans. In this case, it should be checked in such a case whether the bottom line is perhaps better to buy the selected product using one of the other 3 credit alternatives.