These days one or the other bargain lures when shopping online. If you don’t have the necessary change at the moment, you can also be tempted to buy via an installment loan. If financing is used for one of the major online payment services, interest rates are sometimes twice as high.
Everything is getting more expensive – even going into debt. If you are now looking for a cheap installment loan, for example to be able to afford a bargain on Black Friday or Cyber ??Monday despite tight cash, you should definitely compare the financing options. Because interest rates on loans have also risen significantly recently.
However, financing with an installment loan is not an option for every consumer wish. Most banks do not grant loans for amounts under 1000 euros. If consumers want to pay off smaller purchases in installments, buying in installments through the retailer can be a suitable solution. However, consumers should definitely keep track of their debts. Because they have to be paid back at some point.
And if you use the installment financing of the major online payment services Paypal or Klarna for your purchase, you sometimes pay a lot more, as a sample analysis by the comparison portal Verivox has shown. For example, when making a test purchase from Verivox, Klarna charges 12.90 percent interest for installment financing with a term of 2 years. For a notebook worth 2500 euros, the interest costs add up to a total of 328 euros under these conditions. A total of 535 euros in interest is incurred for the financing of the sofa set at the purchase price of 4079 euros.
With an interest rate of 9.99 percent, installment financing with Paypal is somewhat cheaper. The total costs for financing the notebook amount to 255 euros, for the living room furniture a total of 416 euros in interest costs are due.
The evaluation shows that the majority of customers receive a loan of the required amount at an interest rate of 4.49 percent or better from cheap banks. With these conditions, the interest for financing the notebook was only 116 euros in two years. For the living room furniture it would be 190 euros. Compared to financing through Klarna, installment borrowers would save 65 percent on interest costs. Compared to PayPal financing, the saving is 54 percent. The so-called two-thirds interest rate was evaluated. This mandatory information for banks is representative of a wide range of customer groups. Two-thirds of all customers get their loan at this interest rate or cheaper.
Installment loans in comparison
