Be it the new car, the dream of owning a home or financing your next vacation trip. With many tricks, your loan can become significantly cheaper. Even if you have already taken out your loan and have not done everything correctly, debt rescheduling can often save you a lot of money. Ten tips for all consumers.
Tip: If you are interested in consumer loans up to 65,000 dollars, you should use our consumer loan calculator. If you are interested in building finance, you will find a corresponding request form on our website. After completing this, our credit experts will contact you.
How can you make your financing cheaper?
Prepare a financial plan in advance
How many dollars do you actually need? Before you start borrowing, think about how high your actual loan needs should be. The longer you invest your loan, the more precisely you should set the loan amount. It is often advisable to set the loan a little higher.
Because subsequent increases are usually difficult to achieve depending on the amount of the loan and are also often expensive for many banks – this is particularly true when it comes to mortgage lending. Furthermore, when choosing the term, you should always think about the life of the financed item.
Important: Whether car, furniture or computer – the lifespan should, in any case, exceed the loan term. A term of more than 25 years can make sense for real estate financing; you should plan a maximum of eight to ten years for financing a medium-sized car.
Explore offers and compare conditions in advance
All lending rates in Austria are currently historically cheap. Nevertheless, there are still large differences between individual banks when it comes to interest rates. At first glance, it is often difficult to say which loan is the cheapest for you. After all, many loans are granted at interest rates dependent on creditworthiness and the acceptance criteria also differ from bank to bank.
In order to explore the loan that is most convenient for you personally, you should always inquire about loan conditions from several banks online. Effective interest rates are always decisive here – experience has shown that direct banks are often up to 30 percent cheaper thanks to significantly lower ownership costs.
Important: You can obtain your loan terms from any number of banks by comparison without having to worry about your credit score – i.e. your credit rating. In this case, banks report to the that you have requested your terms. Thanks to the feature request credit conditions, condition requests have no influence on your personal score.
Note: If you are interested in consumer loans up to 65,000 dollars, you should use our consumer loan calculator. If you are interested in building finance, you will find a corresponding request form on our website. After completing this, our credit experts will contact you.
Clarify the reason for the financing and save cleverly thanks to earmarking
Think carefully about what you need your loan for. Dedicated loans are often cheaper than those for free use. This applies, for example, to car loans: by offering the bank the financed vehicle as additional security, you can often expect particularly low-interest rates.
The same is the case with mortgage lending: Here too, the mortgage collateral protects the lending bank from financial defaults. The result: Interest rates are noticeably lower with the same performance.
Important: With a car loan, you usually sign a so-called security transfer. The bank thus secures ownership of the vehicle until the loan has been repaid in full. For this purpose, some banks require the original or a copy of the type certificate deposit after purchase.
As part of the mortgage collateral, the bank receives a priority title in the land register. It is only deleted after the construction loan has been repaid or the mortgage loan has been transferred to another bank – for example, in the case of debt restructuring.
Improve creditworthiness and conditions with a second borrower
Not everyone has the opportunity to take out a loan with a partner. But if you have the option, you should use it. Because a second borrower – with the appropriate credit rating thanks to sufficient and secure income – can be the deciding factor that the bank offers you lower interest rates.
In some cases, a loan may be approved in the first place. On average, about 0.5 percentage points of interest can be saved by registering a second borrower. Especially for larger loan amounts with longer terms, this is a smooth business for you as a credit customer.
Important: A second borrower who is entered into the loan agreement has the same legal obligations as the first. This is also liable for the repayable part of his income for the repayment of the loan. For this reason, close relatives or family members are particularly suitable as second borrowers. These should always be noted with all rights to the financing object in the loan agreement.