More and more Danes are taking advantage of the opportunity to take out a consumer loan. However, it is important that you control the consumer loan interest rate, because there can be big differences when it comes to consumer loans. The interest rate will usually be the primary expense associated with a consumer loan, so finding a loan with a reasonable interest rate is a huge benefit. Below we have put together some good tips to help you with this.
Use our resources to find the best loan
At Gedertos Hertelos, we have various resources at your disposal to help you find a good loan. Among other things, you can use our Loan Calculator, which helps you find the best consumer loans. Here you can find the best consumer loans on the Danish market, and you also have the opportunity to just search for the cheapest loans.
The internet is a great resource when it comes to searching for consumer loans, and we try to make it even easier by gathering all the loan options in the same place.
In addition to the loan calculators, we have also created various guides to help you. You can read further below, if you want some good advice along the way.
Give yourself the best options
Most lending companies have different requirements for potential borrowers. This also means that you will have significantly more choice compared to loans if you are an attractive customer.
In connection with the fast consumer loans, three requirements are usually made. You must be domiciled in Denmark, have a certain age, and then you must generally not be registered in RKI. The residence requirement is not negotiable and you cannot decide your age yourself. On the other hand, you can do something about your status in relation to RKI.
RKI stands for Riber’s Credit Information. It is a Danish register of poor payers, and you can get a registration in the register if you have an unpaid bill or do not pay off your debt. In general, a registration in RKI can be very restrictive, because you generally no longer have the opportunity to buy on credit and it can be extremely difficult to get a loan.
Some lending companies are willing to lend money to people with a registration in RKI. However, they can be hard to find and often you do not have many choices. Therefore, if you delete your registration in RKI, you can give yourself a better opportunity to find a good interest rate loan.
You can easily be registered in RKI because of a small amount, so use your Easy ID to check your status. You will be cleared in RKI when you pay off your debt, and then you will have far more loan options, which can save you a lot of money.
Remember to pay attention to the term of the loan
It is obvious to compare consumer loan interest rates to find the best loan, because the interest rate represents a significant share of the loan’s price. However, it is important to note that the maturity of the loan is also an important factor in relation to the price of the loan.
When looking at loans, remember to keep an eye on the term of the loan. Some lending companies give you fairly free reins compared to the maturity itself, and it is clear that the loan will be cheaper if you choose a short maturity.
A short term will mean you have to pay a larger installment on the loan each month. Of course, it is important that you afford these installments, and they should not overcharge your availability. Otherwise, you risk the loan becoming an unnecessary source of worry.
Look at the OPP and the total cost
When comparing different loans, you can look at the OPP. ÅOP is an abbreviation for Annual Cost Percentage. This value includes both interest and fees, making it an excellent benchmark when comparing the prices of many loans. However, the OPP can be a bit misleading when you look at the prices of small consumer loans. Because these loans typically have a short maturity of less than one year, the AOP can be really misleading because it includes the consumer loan interest rate for a full year.
It may take some time to select the best loans and then you can start looking at the total cost of the various loans. Here, the term of the loan is also taken into account, so you get a more accurate price for the loan in kroner and ears. This means that you have good opportunities to experiment with your loan so that you get the optimal maturity, which gives you the least possible interest expenses, but without burdening your finances.