Unfortunately, cheap lending rates don’t just fall from the trees: consumers have to find cheap offers themselves. If you go for the first offer without making a loan comparison, it’s your own fault if you end up paying too much. However, the loan comparison is not always straightforward: the banks are to blame if they do not offer fixed interest rates for their loans, but instead fix the interest rates using different criteria.

Inexpensive personal loan / small loan

In the case of small loans, the interest offered is fixed to the amount of the loan in 99% of the cases; only rarely is it fixed interest. Fixed interest rates primarily benefit people with a poorer credit rating who would have to accept a premium for a variable interest rate – unfortunately, people with a not so good credit rating are often not accepted for loans with a fixed interest rate. People who have a very good to good credit rating pay in turn at fixed interest rates.

If the creditworthiness is very good and good, you should use a loan whose interest depends on the creditworthiness: the poorer the creditworthiness, the higher the risk premium on the interest that the banks charge. In order to be able to assess the creditworthiness, the borrower has to provide the banks with certain documents for review: these include pay slips, employment contracts, bank statements, etc. With these documents and documents, the bank creates a household bill and also checks the credit entries of the prospect.

Cheap real estate finance

Whether building loan or financing for the purchase of a house: it goes without saying that real estate financing should be as cheap as possible, since with long-term loans even minimal interest rate differences can make a big difference in the amount of the total ancillary loan costs. Factors to consider in real estate financing are not only cheap interest, but also things like special repayment rights, duration of the fixed interest period and amount of additional costs (estimated costs, costs for the registration of the land charge, notary fees).

The longer the fixed interest period, the higher the interest premium – nevertheless, cheap loan interest should be secured for as long as possible, because after 10 years the borrower has a general right of termination and can switch to a possibly cheaper follow-up financing .