No more high interest rates! Statistics show: online loans are cheaper!

If you are looking for a loan, you are logically looking for the cheapest possible offer. However, many borrowers shy away from the supposed effort and compare too few offers. As a result, they only receive a small extract and end up paying too much – especially if they present their loan application to a branch bank. Thanks to Across Lender you have the opportunity to get a cheap online loan. Because, as current figures show, online loans are generally cheaper than bank loans.

Installment loans: consumers pay more for bank loans than online

Installment loans: consumers pay more for bank loans than online

Installment loans on the Internet are becoming increasingly popular, but the majority of the financing is still concluded in branch banks. According to the 2018 market study by GfK SE, around 61 percent of private loans were taken out personally in a branch in 2018. However, this proportion has been falling steadily in recent years.

As Credit Bureau statistics show, credit inquiries have continued to increase significantly. This is also due to the better availability and the comparison options for online loans via credit portals. In 2017, a total of more than 27.2 million loan requests from banks were made to Credit Bureau. Compared to 2016, this is an increase of 18.9 percent.

At the same time, the number of loan agreements has increased, but not to the same extent. An increase of 4.6 percent was recorded here, so that a total of 8.01 million new contracts for installment loans were concluded in 2017.

This shows that the comparison on the Internet enables interested parties to compare significantly more offers and thus get their desired loan. The advantages of online loans are already being used by many. If you still have doubts about online loans, convince yourself of the following advantages.

Bank loan vs. Online credit: advantages and disadvantages in comparison

Bank loan vs. Online credit: advantages and disadvantages in comparison

A conventional bank loan and an online loan do not differ in their essential components. After all, an online loan is also a loan from a bank, only that it is taken out on the Internet and not in a branch bank.

As a borrower, you receive a loan amount that you repay over a fixed period plus interest on monthly installments. However, there are a few elementary differences. There are several advantages to online credit:

  • Favorable conditions
  • Quick comparison options
  • Loan application from the comfort of your home
  • Faster processing and payment

costs

Online credit is clearly ahead, especially in terms of costs. As we have already shown, online loans generally offer better terms. This is due to several factors:

  • The competitive pressure on the Internet is higher.
  • The costs for online banks are lower.
  • The offers are easier to compare.

If one considers the Internet as a “place”, numerous credit providers are huddled in a confined space. The increasing competition is forcing online banks to offer cheaper loans so that customers can also become aware of their own product. As a result, the profit margin is smaller overall. However, this is not a big problem for online banks as they have lower costs than a branch bank. You do not have to pay rent for many branches, but act concentrated from one or a few branches.

Furthermore, the offers on the Internet are much easier for consumers to compare. With bank loans, on the other hand, you first have to make an appointment and have a conversation with a bank advisor. The least interested parties conduct more than one or two such conversations. According to Credit Bureau, an interested party makes an average of 2.1 inquiries as part of the loan condition determination. Of course, this is far too little to get a comprehensive overview of all possible offers.

Fabian Krüger, finance expert at Across Lender, sees another problem:

“The branch banks not only have less competition because there are usually only one to three banks in the immediate vicinity of a person. They also have the advantage of customer loyalty. No matter whether Agree Bank, Fine Bank or any other provider, the customers have been customers for years or decades and trust their bank. The branch banks take advantage of this and sell their customers more expensive loans. In the first place, they strive to sell their customers their own product and not to give them the cheapest loan. That is also the reason why a bank advisor would never present you with comparison offers from competitors. ”

consultation

With bank loans, of course, you have the advantage of a personal conversation. This is particularly beneficial for those who have already established a relationship with their personal bank advisor. This enables comprehensive advice. However, keep in mind that this advice only applies to the products that the bank in question sells.

However, you do not have to do without advice on online loans. Although this does not take place in a conversation in a branch, you can still reach our financial experts by phone or e-mail and your questions will be answered immediately.

Application / processing

In the case of bank loans, processing takes longer until the loan is paid out. You have to wait for an appointment with the bank advisor, and such a conversation takes time; not to mention the route.

With online credit, on the other hand, you have the advantage of applying quickly and conveniently. Processing is very quick. At Across Lender you will quickly receive the best available loan offer that is tailored to your personal financial situation.

You have no additional effort as you enter your personal data and your credit request in the online form. An online loan is therefore much more convenient than a conventional bank loan because you can make a loan request quickly and at any time.

Faster payouts for online loans

If you apply for the loan in a bank, it usually takes a long time before the application is checked and the payment is initiated. With online credit, the money is available to you much faster. After you have accepted the non-binding loan offer and submitted the required documents in the form of proof of salary, etc., the loan will be confirmed immediately. Thanks to the option of an express transfer, you can have the money transferred to your account within one working day.

Online credit via Across Lender: quick, easy, uncomplicated

Online credit via Across Lender: quick, easy, uncomplicated

In contrast to other credit comparison portals, we at Across Lender do all the work for you. While you have to compare the loan offers yourself on other portals, you will already receive the cheapest loan offer from us, which we negotiate with our partner banks for you. After submitting the application, you only have to decide whether you want to accept the offer or not. You are guaranteed to have no upfront costs. The offer is free and non-binding.

Another advantage of Across Lender is the comprehensive loan search. If we are unable to determine a loan offer with a Credit Bureau query, our financial experts will find a loan without Credit Bureau for you. This gives you the opportunity to increase your financial scope even with a weaker credit rating.

Conclusion: where should I apply for a loan?

Conclusion: where should I apply for a loan?

If you value a personal consultation in a branch and want to stay loyal to your bank, you can fall back on the conventional bank loan. However, you miss the numerous advantages of an online loan. First and foremost, you pay less interest online and therefore lower monthly installments, which should be the deciding factor when choosing a loan.

Online loans allow a comprehensive comparison of the offers that are available in the market. At Across Lender you have the least effort, because we compare the offers for you and forward the cheapest loan to you. Since this is completely free of any upfront costs and risks for you, you should definitely consider an online loan because of the lower costs and greater convenience.

What are the points to negotiate in a repurchase of credit?

A credit repurchase transaction can be useful to allow you to consolidate all your repayments into a single monthly payment. This transaction represents a number of advantages such as having the possibility of reducing the amount of your monthly payment. It gives you the opportunity to access new cash also to start new projects, in other words it allows you to rearrange your repayment capacity. In particular, it gives you the ease of having to deal with only one contact for any negotiation to be done, so you will have only one deadline to manage. But to be able to benefit from the best conditions, it is important to know how to negotiate certain points in your request to buy back credit. To do this, entrust your approach to a broker to get the best out of it.

Negotiating the costs of handling your credit repurchase

Negotiating the costs of handling your credit repurchase

In general, application fees represent between 1 to 7% of your credit. But thanks to his experiences, as a specialist your broker knows the thread of the trade perfectly, so he could get you a considerable reduction. At the end of the negotiation, based on the potential of your file, he would even be able to reduce these file costs to zero.

When submitting your request, the broker will help you in your process to build a solid case, in order to obtain favorable conditions and benefit from the best possible offers. In this sense, for the assembly of your project of repurchase of credit, it is important to be able to justify a certain financial stability.

Negotiating the interest rate on your loan repurchase

Negotiating the interest rate on your loan repurchase

In the case of a loan repurchase, the amount of your monthly payments depends largely on your interest rate. The more successfully you negotiate for a reduced rate, the lower your refunds.

To do this, brokers do not hesitate to bring competition between the different establishments, in order to give you the benefit of a better borrowing rate. During a credit repurchase transaction, the objective is actually to be able to get a better rate to allow you to breathe a little, financially speaking. If this is the case, your transaction would not be profitable if you find yourself again with a rate higher than that of your current credits. Hence the interest of letting your broker negotiate this important point for you, because as expert connoisseurs he certainly masters all the frames of these operations.

Negotiate insurance for your credit repurchase

Negotiate insurance for your credit repurchase

It is good to know that the insurance taken out to cover your monthly payments can prove to be more expensive than your interest rate. Also, it also makes important points among the terms of negotiating with your borrower.

To summarize, before proceeding to the signing of your credit repurchase agreement, it is important to know how to read between the lines to review all these details. The assistance of a broker in this approach will then allow you to really benefit from better loan conditions, leaving him the freedom to finely conduct the negotiations.