It has almost become a wisdom that whoever is looking for a cheap loan should not rely solely on the offers of his house bank. So it is now common practice that one before deciding on a loan provider, on the Internet at one of the numerous comparison portals performs a credit comparison.
Only by comparing a large number of loan offers is it possible to obtain a broad and therefore valid information base. What it means in plain language is that you can use credit comparisons to filter out the most favorable financing conditions from the respective banks.
As far as the theory and also common practice, because not without reason, the various credit comparison portals have been successful for years. And yet one should also here in the results of the credit comparisons exercise a certain distance to the alleged 100 percent statement. Why? Let’s clear up a bit …
Credit comparisons are not always objective
Even if there is not a single operator of the so-called comparison portals for loans, it is still a more or less open secret that the comparison portals are partly co-financed by the banks. In this respect, one should not blindly rely on the front ranking places as a credit seeker.
No portal has complete and up-to-date information, which means errors in the online comparison are almost inevitable. In addition, as already mentioned, the independence of the comparison providers can not be fully guaranteed because they receive a commission for a successful mediation or a lead.
From this, it can be deduced that providers with high commission payments are prioritized in online comparisons.
Why a loan at the house bank is often more expensive
Undoubtedly, the Internet offers an exorbitantly high information base in order to be able to read comprehensively into the topic of finance as a loan seeker and to be able to assess the customary market credit offers of various financial institutions.
The result is often much better than that of your own house bank and this has a simple reason: Since the local bank has to generate more profit on its loan offers because of the branch costs, the bank puts the overspending on its own financial products and ultimately thus on the customer. As a result, in the majority of cases, significantly worse credit terms come out of the house bank.
Commission dependency at the expense of objectivity in credit
But even with an online comparison of different credit providers on comparison portals can not often be pointed out to take a quite critical attitude here. Comparative portals have an interest in the fact that the products with the highest commission – to the advantage of the comparison platform – are increasingly perceived by customers.
Graphical highlighting and “optimized” ratings are used to influence prospects for credit in the selection. The self-interest of a credit portal is therefore always to calculate, so you should not trust the results of a single platform.
Using different loan comparisons makes sense
In order to fully test the installment loan market and to be able to compare all the low-cost offers, you should always use several comparison providers and compare them.
Often one then notices that here different results come to light in the ranking. It is advisable to make a shortlist and to print the best offers or to make notes on a piece of paper.