When it comes to financing, interest is of course above all relevant, because the other ancillary credit costs such as possible commissions or fees for brokering or account management fees, if charged, are rather marginal – high interest rates, on the other hand, make a loan extremely expensive and thus burden the debtor financially. It is therefore important to pay attention to low interest rates when choosing the right loan.

Creditworthiness of the borrower

Creditworthiness of the borrower

However, interest is always from the creditworthiness of the borrower – if a bank advertises low interest rates, one often reads the word “ab” next to the effective annual interest rate – this simply means that the advertised interest rate with a very good or excellent creditworthiness of the borrower applies.

The worse the credit rating, the further the interest rates rise – for one simple reason: the bank tries to mitigate the risk of not getting all or all of the money back. If the borrower fails after a third of the term, the bank has been able to collect more money due to the higher interest rates than with a lower interest rate, so the loss is minimized.

Credit comparison for credit rating

Credit comparison for credit rating

A credit comparison now usually assumes a “normal” credit rating, if not a very good credit rating. Therefore, choose a loan comparison calculator where you can enter your monthly income and basic costs, otherwise you will not receive any figures that actually give you a clue.

In principle, the banks make it easier for employees to find favorable interest rates on loans than the self-employed, because a regular and fixed income always gives the banks security – for entrepreneurs, income can vary depending on the order situation or business activity, for example, some are dependent on a certain season, fluctuate extremely.

If you stumble across an offer that appears to you to be cheap, you should still go to your house bank and express your financing request there. It is important that you do not receive a binding offer, but only a non-binding offer – or even better, expressly say that you only want to be informed. Then compare the conditions of your house bank with the conditions of other banks and savings banks.