Especially in private households one or the other purchase can always cost a lot of money. Or, in the foreseeable future, a trip is planned that would like to be financed. The reasons for applying for a loan can be many. But, it is caution, because in the jungle of offers one or the other stumbling block.
Especially on the Internet, there are many offers that attract with low interest rates and attractive conditions. And, many borrowers often ask themselves whether the loan amount is tied to a specific purpose. It is worth taking a look at the fine print to find out more about the intended use.
Many offers are not intended!
At the present time, there is strong competition in the credit market, which can be used as a consumer. In the vast majority of offers no purpose is given, so that you can decide freely about the amount granted. Of course, the case looks different when it comes to a purpose-based loan.
This is usually the case for construction loans or car loans. The fixed loan amount is only for the construction of a house, a planned refurbishment measure or the purchase of a car. So you can not just finance part of the sum of the family vacation or a computer.
Beware of overdrawn account!
Of course, there are always financial emergencies in your life that you have to bridge in some way. Many private individuals then make use of the overdraft on the current account at the house bank. Of course, this is not bound to a specific purpose. But fall for a Dispo, which one takes for a short time or permanently, high interest rates.
Compared to a installment loan with low interest rates, one usually pays double-digit interest on a credit line. This can be very expensive over a longer period of time. It’s better to think about an alternative. In this case, free-use loans can be a real help.
Free credits are best online
Of course, many borrowers still lead the way to their own house bank. After all, one usually knows the responsible advisor, who is well acquainted with the personal, financial situation. However, looking at the internet can potentially save a lot of money. This has been shown by independent tests that have made a comparison between internet loan and house bank loan.
Loans, which attract new customers with low interest rates, also look very cheap and attractive. These are also not tied to a specific purpose and are available to borrowers at leisure. Ideal also to compensate for an overdrawn current account in one fell swoop and get out of the minus area again.
When closing a loan, whether at the house bank or online institutions, so be careful. A look at the fine print and the respective contract conditions must be. Otherwise it could come after the conclusion to a nasty surprise and the credit can not be used for a planned vacation or car repair. Many banks on the Internet list the terms of the offers in detail at the beginning. That’s why it says: Keep your eyes open when choosing a loan if you really want to be free.