When it comes to the factors that affect the amount of credit costs, it’s not just the interest that needs to be paid, but depending on where the loan is applied for, there may be other fees that need to be paid.
Loan without intermediaries
Consumers who want to take out a normal installment loan can apply for a loan without an intermediary if they try to do a free loan comparison to find the bank that lends on favorable terms. As soon as a credit broker is commissioned to give you a cheap loan, the extra costs because the credit broker charges a commission for its services, which the borrower then has to pay as a surcharge on the installments.
The consumer gets a loan without an agency fee from Agree banks. It is a different matter if you want to apply for a loan without Credit bureau. Loans without Credit bureau are granted by foreign banks, but never in direct contact with the customer, but such inquiries must always go through a credit broker.
Choosing the Right Credit Broker
When it comes to Credit bureau-free loans, a credit broker must be involved, otherwise nothing works. For the consumer, the question is which credit intermediary to turn to because the internet is full of offers, but not all credit intermediaries work properly. There are a number of black sheep among credit intermediaries who are not really interested in brokering a loan, but rather in making a lot of money with their customers.
Therefore, only brokerage offers should be used, in which the loan is brokered without prepayment . If a credit intermediary charges fees from the customer before it becomes active, this is not serious, and such offers should be avoided. This also applies to credit brokerage offers where customers have to call an expensive hotline beforehand or receive cash on delivery documents for which payment has to be made without knowing the content.
Reputable credit brokers create their non-binding loan offers free of charge and only charge the loan brokerage fee if they actually broker a loan.
If consumers who want to take out a loan without Credit bureau follow these instructions, they cannot avoid the agency fee, but they only pay for a service that is actually provided. The agency fee is an additional cost factor that adds to the interest and processing fees. Therefore, the loan without intermediaries is usually cheaper, but this only works if it is a normal installment loan from Agree banks. But there are also cheap and less cheap loan offers at Agree banks and there are a few things for consumers to consider when it comes to saving credit costs.
Installment loan without processing fee
Agree banks often offer their loans cheaply. Based on the annual percentage rate, which is a percentage, the consumer can compare different loan offers by making a free loan comparison. The APR includes the nominal interest rate and the processing fee charged on the loan. This amounts to between one and three percent of the loan amount. Consumers can save money if they take out an installment loan without a processing fee if possible, but should not ignore the APR. Advertising alone, which promises the loan without a processing fee, is not the main criterion, but the effective annual interest rate must be particularly cheap on the one hand and no processing fee may be charged on the other.
In the case of loan offers with the same interest rate, the offers without a processing fee are preferable to the offers with a processing fee. If the bank does not charge any processing fees, the borrower will benefit from the same effective interest rate if the loan is repaid early. Because unlike the interest that is calculated back, the processing fee is a quantity that is raised once and then lost forever, even if the loan is canceled after a short time. You can therefore save money in advance if you take care when taking a loan comparison to take out a particularly cheap loan for which no processing fees are charged.