Consumer Loan Comparison

Consumer loans are an easy and quick solution when you are in a situation where a little extra money is needed. The money is quickly paid out and no question is asked as to what to spend. At the same time, the loan providers do not place as great demands on you as a customer, just as the traditional banks often do.


Great costs

consumer loan

However, the overriding disadvantage of consumer loans is the cost, which is often very high. Therefore, it is important that you as a customer explore more loan options and compare the costs of the various loan providers. Here you look not only at the interest rate but also the fees, setup costs and other expenses related to taking out the loan. Since for many people it seems impossible to compare the loans, where some have low interest rates, while others have low fees, one can only look at the APR. The APR represents annual percentage costs, with the total interest and cost of the loan being calculated as a percentage per year. year. When comparing different consumer loans, ÅOP is thus a good and quick way to form an overview of which loan is the cheapest. In order to compare it is important here that you enter the same conditions at the different providers. That is, the loan amount and maturity are the same, since the costs will naturally vary with different loan amounts or maturities, which is why the APR will in this case not be able to compare correctly.

Another thing to consider when comparing loan offers is whether interest rates are fixed or variable. Variable interest rates are usually lower than fixed rates. is due to the greater uncertainty of having a variable rate loan. At this, the APR will often be lower than the fixed interest rate at variable interest rates. If the interest rate is variable, it means that it can both rise and fall over the term of the loan, often there is, however, a minimum interest rate and a maximum interest rate which limit the variation. Therefore, when comparing loans with fixed interest rates and loans with variable interest rates, one should be aware of the uncertainty involved in choosing variable interest rates, as the costs may well be higher than what is stated in the offer.


Get quotes from multiple providers

consumer loan

When you need to take out a consumer loan, it is therefore important to obtain offers from several providers to ensure that you get the cheapest possible loan. Here, first and foremost, you must compare the APR and at the same time consider whether you want fixed or variable interest rates, depending on how safe you want to be on the amount to be repaid.

How To Get Low Cost On Your Payday Loan

Having the lowest possible cost on your payday loan has a huge impact on your financial freedom in everyday life. Become wiser on how to get the lowest cost on your loans.


Info about getting low cost on a payday loan

Info about getting low cost on a loan

There are many who do not know and even more who neglect to do so, but the fact is that there can be a lot of money to be saved by choosing their loans wisely. And this is not small money we are talking about.

You may have tried switching a mobile subscription because it could save you a few thousand dollars a year. That’s a sensible thing. By looking at your loans at the seams, there is potential for even greater savings than, for example, with the mobile subscriptions.

It is seen earlier that families have saved up to 50,000 dollars annually by checking their loans. Of course, not everyone is able to save that much money, but less can, of course.

It is not difficult to get low costs on its loans as such, but it does take you time to research the markets. Here we give you tips on what to do to get cheaper loans.

Always look for OPOP

Forget about interest rates, fees and starting costs. You should always look for OPOP. The APR is the percentage of annual costs. In other words, that is, all the costs associated with the loan are included in the APR.

It is a requirement that banks and other loan providers must give up the APR, and it is the one that gives you as a consumer easier access to see the cost of the loan.


Low cost of a home loan

Low cost of a home loan

It is on the home loan that there is really potential to make the big savings. Just half a percentage point difference between two different bank loans will have a major impact on your daily finances. Therefore, it is extremely important that you are thorough when choosing your mortgage institution, whether you need a new home loan or have one in advance.


New home loan: Explore more providers

It’s the number one mistake just to go down to your current bank and ask for a mortgage if you do, because “the bank you’ve always had”. It is far from certain that this is where you can get the cheapest loan.

Instead, you should get an offer from at least five different mortgage lenders. By doing this, it is also sometimes possible to squeeze the selected mortgage lenders into a cheaper loan.


Replacement of current housing loans

Even if you already have a home loan, it doesn’t stop you from switching mortgage lenders. This is not so different from switching insurance, mobile subscriptions or cable TV. There’s just more money to save. Still, there are far too few that do.

Therefore, contact five mortgage lenders other than your current one and inquire about the options. You may not be able to make savings, but you will not lose anything by trying.


Lower bank loan costs

Lower bank loan costs

Although in a smaller size than with home loans, it is also possible to make good savings on bank loans.

Enjoy bank loans

Just like with the home loan, it is about being able to compare multiple providers. The more more loan offers, the wider your loan range – and the better opportunity you have been able to squeeze the providers at an advantageous price for you.

Here at Pollum you can find an easy and clear overview of Danish and foreign banks and loan providers. You can get to the page by clicking here: Consumer Loans:


Restructuring of current bank loans

When changing bank loans, it is most often in the context of a change in home loan. But for those who do not own their own homes, it is also possible to make good savings.

For example, savings on bank loans can be:

  • Car loans
  • Cash credit
  • Consumer

What is a loan conversion?

If, like many others, you have been to a dinner party where the word loan conversion has been mentioned, here you can get a quick overview of what it is. Then, next time, you don’t just have to nod, but can actually talk a bit about loan conversions.

A loan restructuring covers the act of repaying your fixed-rate mortgage and taking out a new loan of the same type. The reason for doing so is because the interest rates and rates on loans are constantly changing. This means that loans can be borrowed at different interest rates at different times, as well as borrowing and repayment loans at different rates.

The idea of ​​converting your loan thus lies in the fact that one can replace a loan with a level of interest and take out a new loan with another level of interest. You talk about levels of interest rates because you can either up or down your loan.


Down loan conversion

Down loan conversion

If you convert down, your interest payment will be reduced and the purpose is thus to reduce the total payment you pay on the loan. This type of loan conversion is called a down conversion because you take out a new loan that has a lower interest rate. What you should be aware of is that you increase the outstanding debt on the loan when you do this.

You do this because you have to pay fees and foundation costs on the new loan, as well as the fact that you take out the new loan at less than 100 – but you typically pay off the old loan at 100. Because you increase the amount you actually owe the lender , the new interest rate you get on the loan must be well below the interest rate you have on your current loan.

A rule of thumb is that the interest rate must be about 2 percentage points below before it can pay off to make a down conversion. However, it also depends on the size of the loan to be repaid. Another thing to be aware of is that your interest deduction will fall because you pay a lower interest rate on the new loan. This despite paying higher interest rates.


Loan conversion

Loan conversion

If, on the other hand, you make a conversion, you take out a loan with a higher interest rate. As the market interest rate rises, the bond rate falls on one’s loan. This means that if you take out a new loan with a higher interest rate but a lower interest rate, you can reduce the residual debt on the loan because you can repay the loan at a lower rate than you raised it. However, the benefit rises on the loan as you pay a higher interest payment.

An up-conversion is by nature more speculative than a down-conversion, because an up-conversion plans to down-convert later. The trick is to up-convert to reduce its debt, but down-convert when interest rates fall again. You can never know for sure how the interest rate will develop over time, and therefore there is a certain risk associated with an upward conversion. The interest rate has to fall again before the new higher yield eats the gains from the conversions.

In short, a down conversion is a conversion of loans to a lower interest rate with increased residual debt – whereas an upward conversion is a new loan with higher interest rates and lower residual debt. However, they typically convert down when interest rates fall again. Many banks have conversion monitoring on loans, so you as a borrower can be notified when it makes good sense to either make an up or down conversion.

These descriptions are to a lesser extent related to loan types such as consumer loans or quick loans.

GUIDE: Get a low interest rate on your loan

There is a nearly linear relationship between the risk the lender assumes and the interest rate you can expect to get on a loan. The more risk the lender takes on by lending you money, the higher a return the lender will require to lend you this money – which ultimately means that the interest rate on your loan will be higher. It has nothing to do with luck or coincidence what interest rate you are offered.

The lender bases the risk he assumes by looking at how solid your financial situation is, as well as the documentation you can show him about various matters that affect your ability to repay the loan.

Of these two elements that the lender is looking at, the latter is the easiest thing to do as a borrower – the documentation. After all, even though the two things are interconnected, improving your financial situation in the form of increased availability is more difficult than documenting how your finances are related.

By having an overview of how your own private finances are connected, you give the impression to the lender that you are responsible and prepared. It can help make the lender more secure and thus ultimately reduce the risk to him by offering you a loan – thus reducing the interest rate you will pay.


Here you get the tips to get a low interest rate on your loan

Gain an overview of your expenses and income


If you have an online bank with budget and division function, this is obvious. If you don’t, I’d recommend getting it. If you do not, you must slavishly review your bank statements and assign each item a category such as: Rent, Car, Insurance, etc. It may be a cumbersome job, but most banks offer such features through their online banking.

Put all your fixed costs together. So all the costs are the same amount each month (or almost the same amount each month). For example, the cost of a mobile phone is usually referred to as a fixed expense, although the item may actually vary slightly in size.

Then add up all costs that cannot be categorized as fixed and take an average of these over 12 months. Then you have an overview of both fixed and variable costs and thus can see how much money you need – for your finances to run around.

Your after-tax income is typically stable over a full year. If it is not, make sure to take an average over the 12 months of the year. Subtract your revenue from your spending to see how close your finances are to being in balance. An important keyword that lenders use is ‘availability amount’ and this exercise can help to clarify the order of availability amount.


Assess which items can be expected to rise and which ones are likely to fall over the next year

Assess which items can be expected to rise and which ones are likely to fall over the next year

Is there anything that can be sorted from? Are there places where it is obvious to save? Making such thoughts sends a positive signal to the lender and can be used as an argument to justify how things look in the future.


Have your last 3 paychecks


Advance statement and annual statement included so the lender can see tangible facts about your income. These documents provide security for the lender.


Don’t say to the lender that you can drastically reduce your consumption


if it really can’t be done. They see through it very quickly! If you want to argue this, make sure you have some concrete points ready that you can reasonably fulfill. For example, you may want to review your insurance policies, downgrade your TV package, or move children from private to public elementary school. So things you want to do that the lender can immediately relate to diminished consumption.


Get acquainted with common loan

Get acquainted with common loan

Related terms such as; variable versus fixed interest rate, what constitutes a benefit, OPP, principal and loan proceeds, etc. Elements like these, you can read more about here.


Show that you are in control

control money

Don’t come in with a lazy attitude. Ask questions and stay tuned. Although many do not make use of it, it is just as legitimate to negotiate in a loan situation as it is in a hawker market. The price of a loan is rarely fixed from the start, so there is ample opportunity to influence your situation favorably if you challenge the lender. If there are words or schemes you don’t understand – say it! Ask the lender to explain it in simpler terms so that you are sure what you might like. says yes to. It is no shame not to know what SDO (Special Covered Bonds) is, but since it can affect your loan agreement, it is important that you ask. Failure to do so will put you in a worse position in the conversation because a loan is set up based on terms you do not understand. So be critical!


You do not have to put your signature on a loan agreement for the first meeting


Often after a long meeting you may need time to think through all the inputs you have been given. Say that you will return after you have considered the situation and obtained other offers on the loan.

These tips are great to write behind the ear before you can talk about loans. Having these tips in mind will hopefully help convince the lender that you are well able to repay your loan in a timely manner and that you are a responsible borrower. Because you are!

Good luck with the conversation!

Online loan options

If you are in urgent need of money, or simply need a financial respite for a shorter period, an online loan can be a practical solution. By looking at the various loan options on the net, one must be aware of a number of factors, such as repayment and other applicable conditions. These are a guide for you here.

Easier than borrowing at the bank

Easier than borrowing at the bank

When you look for your loan options online, you quickly discover that it is far easier to take out an online loan than it is to go to the bank and borrow the money.

If you apply for a loan at the bank, they will often have a large number of requirements, as well as a lot of documentation, to be able to grant you a loan. These can be documents such as paychecks, annual statements, budget and other documents that can help to prove your repayment ability.

Borrowing a loan online avoids many of these requirements. Here, most providers just need to do a credit check and, in some cases, check your income level. The credit check is made to ensure that you are not registered as a poor payer. The income level is made to see your ability to repay the loan.

Benefits of Online Loans

Benefits of Online Loans

In addition to not having to provide as much documentation as a bank loan, there are a number of other benefits of borrowing over the net. When you apply for a loan online, you will often have the money within a short time, yes most often within an hour.

Once you have made the application, you will receive within a few minutes whether you are approved or not for the loan. The money will then, as soon as possible, be in your Easy Account.

Therefore, if you stand and need money now and then, an online loan can be a solution.

Loans without having to provide collateral

If a loan is taken out in the bank, they will often want you to provide collateral in any property that you should own. This can be done, for example. be your home, car or other valuable items. This is what the bank does to make sure that they can get the money back if you are no longer able to pay.

This is not the case with an online loan. Here, you will never have to provide collateral when a loan is taken out, so it is easier to take out a loan that does not set the major requirements for you as repayers.

Disadvantages of online loans

Disadvantages of online loans

When there are benefits to something, there will usually also be disadvantages to consider.

Higher interest rates

Since online mortgage providers do not have to take collateral in your property, they will instead charge a slightly higher interest rate in return to lend you the money. The interest rate will therefore often be higher than if you take out a loan with the bank.

Limitation in loan amount

In most cases, online loan providers will not be able to offer you loans that are as large as if you went to the bank and applied. Therefore, look at how much you need to borrow, and if so. would be easier for you to go to the bank and apply for the loan.

Before you take out the loan

Before you take out the loan

Before you go online and apply for a loan, there are a few things to consider before you sign the loan agreement.

Be for example. Pay attention to the terms of the loan you want to apply. You can do this by going in and applying for the loan, but wait to sign with your NemID until you have read the terms.

Review the different types of loans and see which is best for your particular financial situation.

There may be an advantage to be gained by looking at the different types of online loan providers in the market as they can each specialize in different areas. Are they mainly offering smaller loans or you can borrow more than DKK 10,000 are conditions that you can look for. By choosing a provider that offers the size of the loan you want, you can often be guaranteed better terms.

At Odette we offer credit where you have the opportunity to borrow up to DKK 15,000. You can see directly in our loan box how much the loan will cost you overall.