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After the maximum interest rate for consumer loans was increased by one point in May 2023, the minimum interest rates of Swiss lenders also increased. Even with good credit scores, loans became more expensive in the middle of last year. Now, after a short while the game becomes repetitive. Loan interest rates are increasing again. So what do you do if you need a loan?
Find cheap loans now
Anyone planning to take out a personal loan to move, buy a car or make renovations should hurry. If you act quickly, you can still find providers who don’t raise interest rates. For example, on Lend.ch loans and debt restructuring are still possible under the best conditions. Some banks adjusted their interest rates at the beginning of the year.
Considering the expected interest rate increases in Switzerland, proactive planning and strategic approach are helpful in obtaining cheap loans. You can get a cheap loan step by step:
- Compare different offers: Use online loan comparison platforms to compare interest rates and loan offers from different lenders. These platforms provide an overview of the market and allow you to find the cheapest offers. But be careful! Platforms do not always list all providers.
- Consider alternative financing options: Look for mass lending platforms, credit unions or government-backed loans, which often offer lower interest rates or more favorable terms.
- Pay attention to effective interest rates and terms: You should consider the effective annual interest rate, which includes all costs, as well as the other terms of the loan. These include, for example, maturity, repayment and costs for early repayment penalties and, if necessary, account management.
- Be flexible with terminology: The loan term has a significant impact on the monthly rate. The shorter the term, the higher the rates, but generally the less interest you have to pay. A shorter term usually means lower overall costs.
- Improve your credit score, by paying obligations on time, consolidating loans, accounts and credit cards, and deleting erroneous entries. A solid credit history is crucial to getting affordable interest rates and loan approval.
Consolidate, refinance or increase existing loans
Even though it sounds strange: A new loan can save a lot of money. Many borrowers do not realize that paying off their loan each month increases their credit score and can therefore lower their loan interest rate. If you pay your installments regularly, you can refinance your debt to a new loan with more favorable terms. This saves money every month.
Zurich platform Lend.ch specializes in replacing existing loans with better loans. This is true for personal loans, business loans, and even mortgages.
Thanks to the regulations in the Consumer Loans Law, it is possible to pay the old loan early, free of charge, at any time. Only a few providers charge a small fee for processing.
If you don’t want or can’t postpone a purchase, you don’t have to fear terrible interest rates. The days of low interest rates are gone, but with a little planning and the right lender, your wishes can still be fulfilled on good terms.
Lending is prohibited if it leads to excessive indebtedness of the consumer (Article 3 Para. 1 lit. n UWG).
Source : Blick
I am Dawid Malan, a news reporter for 24 Instant News. I specialize in celebrity and entertainment news, writing stories that capture the attention of readers from all walks of life. My work has been featured in some of the world’s leading publications and I am passionate about delivering quality content to my readers.
