Are you looking for the cheapest loan solution for your project on the Internet? Of course, you will primarily pay attention to criteria such as low effective interest rates, terms, and free repayments or installment breaks. But at the very beginning of your search, another question is the focus:
Would you like to take out a general-purpose loan, i.e. a loan for free use, or is a loan tied to a specific purpose the better solution? Whatever loan option is the right solution for you, it always makes sense to use a loan comparison.
Good credit comparisons offer you double savings
First of all, Internet loans are in principle somewhat cheaper than loans from a branch bank.
You can also use comparison portals to easily find the loan that has the best interest rates for the selected loan amount and the desired term.
To take advantage of these benefits, however, the credit comparison portal must work with banks that offer the best loan terms. This is the case with Good Finance.
That is why our recommendation is: Use the Good Finance loan calculator, regardless of whether you are looking for a general-purpose loan or a loan with a specific purpose.
Free all-purpose loan comparison
Each loan calculator enables the purpose to be preset. If you are looking for a general-purpose loan, you have to set the calculator to “free use”, “no use” or similar. We have already done this for you.
All-purpose loan means that there is no specific purpose. You can use the loan at your convenience.
You can finance your new car, finance a home decor, reschedule, finance family celebrations, or just use the money for consumption.
This freedom gives you a greater risk of default on the bank. If a loan is required to cover general living expenses, the risk of default is higher than if the loan is used to finance home furnishings.
A higher credit default risk means a higher interest rate in the interest structure of a particular bank. This is why general-purpose loans tend to be somewhat more expensive than dedicated loan products.
However, general-purpose loans have the advantage that you, as a borrower, can freely dispose of the loan amount.
You neither have to provide proof of use nor are you forced from the outset to transfer the funded item to security.
With a dedicated car loan, you must regularly submit at least the purchase contract. In most cases, the vehicle must be assigned as security.
On the other hand, if you use a loan for free use for your car, there is no need for proof or transfer of ownership.
In individual cases, a general-purpose car finance loan does not necessarily have to be more expensive than a dedicated car loan.
Depending on the interest rate offered by a bank, the general-purpose loan from a certain bank may be cheaper than the dedicated car loan from another bank.
If banks offer general-purpose loans, this offer does not have to apply for every purpose.
Some banks exclude real estate financing with installment loans without earmarking. On the other hand, not every real estate loan has to be earmarked. For example, there are mortgage loans that can be used for any purpose.
One provider of such mortgage loans in the German credit broker Good Credit. The mortgage loan can be used in any way. Borrowers with below-average credit ratings are also eligible to apply.
Good Credit also arranges small loans without SCHUFA query from the Good Finance Bank. Schufa-free loans are all-purpose loans.
Compare credit with earmarking
In times of particularly low-interest rates, as is currently the case, rescheduling of expensive old loans or overdrafts is likely to come first, followed by loans for home furnishings and car finance.
We have therefore preset the loan calculator for the purpose of “debt rescheduling” for you.
Purpose limitation means that the loans may only serve the specified and agreed purpose. Proof of use and special security are often expected in addition to the assignment of wages.
Real purpose-linked loans with basic interest advantages can be divided into a few groups. In addition to debt rescheduling loans, there are the following special loans.
Loans for vehicle financing
Dedicated motor vehicle loans for the financing of new and used cars, motorcycles, caravans, and mobile homes or for the financing of classic cars are offered by almost all branch banks and by many direct banks.
As a rule, the submission of the purchase contract and transfer by way of security by handing over the vehicle letter are a prerequisite.
In addition to cheap interest rates, there is another advantage. The creditworthiness requirements are not as high as for general-purpose loans.
A low bank score, caused for example by a completed negative feature in the SCHUFA file, does not have to be a reason for exclusion. In such cases, a high down payment makes lending easier.
Housing loans without an entry in the land register
Housing loans are installment loans that are mainly used for the following purposes:
Conversion measures, expansion measures, repairs, modernizations and certain home furnishings such as fitted kitchens.
No mortgages or mortgages have to be entered as security for the loans. Depending on the bank, the loan amounts range from a few thousand dollars to 50,000 dollars. The interest rates depend on the creditworthiness.
Housing loans can be combined with Good Credit grants (particularly low-interest loans or grants). For example, energy-saving construction measures or conversion measures under the heading “age-appropriate (handicapped-friendly) living” are eligible.
Some banks expect special proof of use. Other banks, however, do not.
If Good Credit loans are included in the financing measure, evidence, sometimes very extensive, is also required for the construction progress.
In certain cases, expert opinions must also be provided. Sometimes it is necessary to adhere to specified schedules for the evidence.
Dedicated student loans
Student loans are special loans that Good Credit grants against appropriate evidence and must be requested from banks that cooperate with Good Credit or online.
The loans are used to finance expenses for the first or second degree. Doctoral studies and postgraduate studies are also funded.
For a certain time and up to a certain maximum period, monthly amounts ranging from 100 to 650 dollars are paid out.
After completing the course, the loans will be repaid. Different repayment plans can be agreed upon for repayment.
The best-known variant of earmarked loans is surely the real estate loan.
Whether a construction project is to be financed or the purchase of a house, a condominium or a plot of land, nobody will try to finance such projects with a normal installment loan without earmarking.
Real estate loans are regularly secured with a land charge, which is entered in the land register.
A lower credit default risk ensures low-interest rates. Long terms make the monthly loan rates bearable for private builders and homeowners.
Building loans are often paid out as construction progresses. In such cases, ongoing evidence must sometimes be provided.
Many builders and property buyers still conclude real estate financing in a traditional way.
They go to their house bank and maybe get a comparison offer or two from other branch banks. Then the loan is taken out, mostly at the house bank.
However, this is not the most effective way to find cheap real estate financing. Significant credit costs can be saved by using credit exchanges specializing in real estate loans.
Online credit exchanges offer a combined service. In addition to the pure online offer, consultations with credit agreements can also be used on site.
As a rule, credit brokers specializing in real estate loans can access a few hundred financing offers to find the right financing with the most favorable terms for your project.