In most cases, anyone applying for an instant loan wants to hold the money in their hands immediately. Many therefore make the mistake of comparing banks’ interest rates. The amount of interest affects the loan amount. But you can also save on interest. All that is required is to compare the offers for an instant loan with little interest.
The advertising – a lot of smoke for nothing
When looking for the right bank, you shouldn’t be blinded by the advertising. This promises the blue from the sky. But in the end, the one who chooses a bank too quickly pays for it. The banks advertise with interest rates that do not really exist. There are serious differences here. In this context, two terms stand out: interest based on creditworthiness and effective annual interest. This creates confusion and many consumers are overwhelmed. But light can quickly be used in the dark.
Interest based on creditworthiness
Most overlook the asterisk behind the interest. But the fine print says that this is interest based on creditworthiness. There are few cases in which borrowers actually benefit from this instant loan with little interest. In reality, these are higher.
Effective interest rate
At this interest rate, the other costs, such as the processing fee, are already included. But in advertising, the net interest is the first thing that catches our eye. This is only used to draw customers’ attention to the offer. Few people take the trouble to read the small print. The banks are building on this.
But afterwards, the borrowers get big eyes once they have their loan agreement in their hands. In reality, only the customer who takes the trouble to study the offers of the individual banks receives an instant loan with little interest. That doesn’t even last long, because the Internet offers these possibilities. The searcher quickly and clearly finds the best offers for an instant loan with little interest on the portals.