3 easy steps to a cheaper quick loan

Don’t cheat yourself when you borrow, follow these 3 easy steps to the cheapest quick loan.

If you are going to borrow money, don’t just take the first and best loan – make yourself a bit worried and save money on your new loan!

1. Find the quick loans that best suit you.

See the providers through and select those who offer loans with the loan amount you need and with an appropriate maturity.

You should not apply for loans that do not suit you or your situation. If you borrow too much, the loan becomes more expensive and if you do not borrow enough, you will end up needing another loan. Two smaller loans are far more expensive than a larger loan.

2. Apply for several different providers

Even if you only need a loan, it is a good idea to apply to several providers. Your application is completely non-binding. You get more loan offers to choose from and can choose the cheapest.

3. Choose the cheapest loan

If you find it difficult to compare the different loan offers, you are not the only one. It can be difficult to see what a loan costs exactly.

Looking at the ad material from a loan provider, you get a number of numbers. Most of these figures are completely useless. This is especially true for figures that are stated as a from-and-for amount eg: Fixed annual interest rate of 8 – 18% or APR of 12 – 22%. These numbers tell nothing about what YOU should pay.

Only when you get a specific loan offer can you see what your costs will be. Luckily, applying for a loan is completely non-committal.

When you consider a concrete loan offer, there are two ways to do it, the easy and the slightly more difficult way:

The easy way:
The law requires that the loan provider give you a number of figures in connection with your loan offer. You must have the “total cost”. The total cost is the price of your loan – however, you have to skew a little on how much of the amount there are fees.
Interest can be deducted on the tax return, it cannot charge. A loan with a large fee and low interest rate can easily be much more expensive than a loan with a small fee and a higher interest rate.

The slightly more difficult way:
If you want to work a little more thoroughly, you have to put together the different concepts:

  • Interest rates .
    Interest is the costs incurred during the term of the loan. Apart from the very short-term loans, the interest rate is stated as an annual interest rate in percent. Interest can be deducted from the tax return. Exactly how much you can utilize the deduction you can see at SKAT. As a rule of thumb, you pay approx. DKK 70 out of every DKK 100 that constitutes the interest.
  • fees
    There is preferably an establishment fee for setting up your loan. There can be a big difference in how large the establishment fee is with the various loan providers. With a large fee, the provider can advertise with a lower interest rate.
    In addition to the entry fee, there may also be a fee for each deposit. It is like a small amount that many do not think about.
    A fee of DKK 39 per payment on a loan that runs for 2 years runs into (24 x 39 DKK) 936 kr.
    Fees cannot normally be deducted from the tax return.
  • OPEN (Annual Cost Percentage)
    The APR should be a simple way to compare the cost of borrowing. Unfortunately, this is not always true. APR can e.g. only used to compare 2 identical loans (same loan amount and same maturity). The APR also does not take into account what are interest rates and what are fees.

Advantage

  • Loans from NOK 5,000 – 200,000.
  • You get a fixed low interest rate.
  • Maturity, from 1 to 15 years.
  • Answer immediately.

Limitations

  • You must live in Denmark.
  • You must be at least 23 years old.
  • You must have a permanent job.
  • You must NOT be registered with RKI.

Loan example: For loans of DKK 65,000 over 5 years (60 months). Monthly. Performance from 1,357 to 1,888 DKK. Fixed individual debt rate from 8.99% to 26.81%. APR before tax from 10.33% to 28.36%. Total credit costs from 17,367 to 49,259 DKK Total repayment from 81,417 to 113,309 DKK Duration 1-15 years. – See our review!

Denmark’s cheapest quick loan. See cheap quick loans