Personal loans are on sale. In recent months we have seen how a large number of banks and private lenders have lowered interest rates to levels unthinkable a few years ago. If we need credit, now is the time to take advantage of the competition between entities and choose the best offer.
Price war to offer the cheapest personal loans
The competition between lenders has caused the conditions of many of their personal loans to improve. Interest and commissions for various consumer loans have fallen, and new, more affordable personal loans have also been created. For example, in March ING Direct lowered the nominal interest of its Orange Loan to 6.95%, and Banco Santander lowered the APR of its Auto Loan in April (from 8.61% to 7.06%).
Different personal loans for different needs
There are several types of consumer loans, from mini loans to loans of more than 100,000 euros. Depending on what we need we can choose one type or another.
Money to get out of trouble or for small purchases
If we look for financing to buy a television or to pay an invoice that has gotten out of hand, these are the best options:
- Ask for a mini credit. The mini credits are personal loans of up to € 800 to be returned within a maximum period of 30 days. They have a higher interest than the rest of the consumer loans. They are requested online and the money is received in a few hours. This option is ideal for getting out of trouble.
- Request a personal loan for consumption. These credits, not exceeding € 200, are offered by companies to their consumers so that they can pay for their purchase in installments. As the goal is to buy their products, the companies that offer them usually apply a very low interest or even 0%.
- Ask the bank to advance the payroll. Only customers who have their payroll registered at the bank can request it. The interest in these personal loans is less than in the case of mini-credit. However, as the amount granted is greater, we will need the confidence of the entity.
- Ask for a credit card. Although they usually apply a fairly high interest, credit cards are very useful for all kinds of purchases. Normally the entities put at the disposal of the client up to € 5,000 and include very advantageous additional services. For example, the Barclaycard Visa and the bancopopular-eCard include several free insurance and discounts on purchases.
Money for projects or larger purchases
If we want to buy a car or renovate the house, we can request the following personal credits:
- The advancement of several payrolls to the bank. Our entity will ask us for seniority and will want to make sure that we can pay the loan.
- Traditional personal loans. They are the most requested to reform the home, buy a car, pay tuition fees … They allow to have a reasonably large amount of money and its repayment term is greater. We will need the confidence of our entity to grant them.
How to choose the best offer
In the market, we can find very cheap payday loan offers, but there are so many to choose from that it is difficult to choose the most appropriate one. To avoid mistakes, we can use GreenDayOnline .