What are the advantages of a long-term loan

Due to the enormous variety of offers on the credit market, the banks and savings banks try to differentiate themselves from one another by their terms. The borrower therefore sometimes has greater differences in terms of interest, the possibility of structuring the loan amount, fixed interest rates, use, as well as repayment and term.

Borrowers who are looking for a loan with a long term can hope for attractive credit products with interesting terms both from the banks and savings banks in the local area and from the online banks online. In the case of loans with a long term, the comparison of interest rates is extremely important, since the remaining debt is reduced more slowly over a long term.

For this reason, borrowers who want to permanently secure the cheapest long-term loan cannot avoid a loan comparison on the Internet; numerous financial portals now allow a quick and free comparison. In this way, the borrower can not only secure the best loan offer with the best framework conditions, but also possibly save a lot of money.

Securing a long-term loan at the best conditions 

Securing a long-term loan at the best conditions 

This must be taken into account when comparing several offers. Especially with a loan with a long term, borrowers should pay attention to the interest conditions. In particular, the distinction between debit and effective interest is particularly important for a long-term loan. The borrowing rate is an adjusted interest rate, since the borrowing rate does not take into account fees, the bank’s individual criteria or the borrower’s individual factors.

The effective interest rate, on the other hand, also takes individual factors into account, such as the borrower’s income, the amount of the borrower, the duration and use of the loan and the desired loan amount. The influence of creditworthiness in particular is not too obvious. The creditworthiness is significantly influenced by the income on the one hand and the borrower’s Credit Bureau on the other.

Borrower’s high income


The borrower’s income should be as high as possible and the Credit Bureau should be positive. A high income and a positive Credit Bureau ensure the repayment of the loan and let the bank assess the risk that exists when lending. In addition to creditworthiness, borrowers can also influence interest rates through the structure of terms and amounts of loans.

In the case of a long term, it is advisable to only draw on a small loan because the bank has to fear a lower risk. The general advantage of a long term is the lower liquidity burden for the borrower, who can benefit from a safe repayment in this way, especially with a low income.

To get the best long-term loan, borrowers should use an online loan comparison.

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