Four tips for bidding for loans
The tendering process for loans has become commonplace as well, but at the same time the consumer needs to be more precise about how the loan comparison is made. Bidding on loan offers can save you hundreds or even thousands of euros, but if done incorrectly, it can cause unnecessary headaches.
Nowadays, bidding for loans is even more important, because with the fall of 2019, you can find the best loan even from an unknown lender.
Before you apply for a loan, make sure that:
You know how much you need a loan and how quickly you want to repay it. It is a good idea to avoid sending several successive loan applications, as some banks see over-activity in applying for loans as a risk factor. The bank may refuse to make an offer, or even withdraw an earlier offer due to several short-term applications.
Once the loan amount and loan period are known, you can start bidding for the loans.
Choose the service through which you will bid for the loans
There are several services that advertise loan tendering. However, many of these services do not cooperate with banks or financial institutions, but act as an investor in loan comparison companies. Before you apply for a loan, you should check the following basics:
- Which company can be found in the background of the benchmarking service?
- Are business contacts available?
- Which lenders are involved in the bidding process?
Remember that the loan application contains personal information. If you are not sure which company will handle your application or if its contact information is not readily available, it may be safer to move on to the next service.
Fill out the application carefully
A carefully completed application will help you find the right loan offer. Invest in quality rather than quantity and fill out one application carefully with the benchmarking service of your choice. If you are considering merging your existing loans, see our tips on combining loans.
The loan application asks for information about your financial situation. Please check the information you provided before submitting your application to avoid multiple applications. Submitting many applications can diminish your chances of getting a bargain loan.
Compare loan quotes
Loan comparisons work fast and you can get quotes right after you submit your application. In addition to the loan amount, the loan period and the interest rate, check the loan offers for the actual annual interest rate and any loan opening or processing fees. The real APR should be used to compare offers.
Choose the best deal for yourself
When a suitable loan offer is found, it is your turn to sign the loan agreement, which will be handled with your bank codes. A loan agreement is entered into between you and the lender of your choice. In many cases, lenders want a signed loan agreement as well as proof of your declared income. A copy of your most recent salary statement or pension decision is often a testimony.
A secure loan comparison service that seeks out the best loan for you from dozens of banks and financial institutions for free. We always arrange the quotes you receive in order of price, so that it is easy for you to choose the lowest quotation. You can see the banks and financial institutions included in our comparison here. As the only comparison service, offers the best interest rate guarantee on your loan.