Are you looking for a cheap loan with long terms from direct banks? Let the professional compare the best offers. At Good Finance, E-Money and Good Credit, comparison and loan offers are free and non-binding. E-Money works with partner banks that offer loans with terms of up to 144 months.
Good Credit compares installment loans for you with terms of up to 120 months and, for many credit customers probably more theoretical, maximum amounts of up to 1 million dollars. In addition, Good Credit offers a mortgage loan for owners or buyers of owner-occupied real estate.
You can apply for the Good Credit mortgage loan here
The mortgage loan offers long terms of up to 360 months with small installments, is not earmarked and can also be applied for by people with minor problems with Credit Checker.
Good Finance compares installment loans at your disposal and with earmarkings with terms of up to 120 months and maximum loan amounts of up to USD 100,000.
The credit comparison from E-Money includes standard installment loans and residential loans for modernization measures and renovation measures. The maximum amount is 120,000 dollars.
You only have to fill out a credit request at E-Money and at Good Finance to compare the loans. This automatically triggers a credit comparison among all partner banks and you receive the cheapest offer.
Long terms – what to look for
Long-term loans, in particular, appear cheap at first glance because the monthly installments are always lower than for loans with short terms.
Viewed over the entire term, however, they are expensive because the total interest burden is very high due to the low repayment portions in the monthly installments.
Extra-long terms are not economically worthwhile. The faster a loan is repaid, the lower the total burden from the loan. Nevertheless, there can be life situations in which borrowers opt for long terms for good reasons, even with lower loan amounts.
Low rates with long terms can counteract over-indebtedness in individual cases. And in some cases, important purchases may not be financed in other ways.
The agreed terms of an installment loan are mostly the result of a compromise. Credit customers actually want to reasonably adjust the term to the useful life of the investments to be financed.
However, this would mean a rate that, in the borrower’s opinion, is too restricting his financial scope. For this reason, a term is chosen that exceeds the expected useful life of the financed item.
The usual useful life of many motor vehicles will be five years. However, many vehicle loans have longer terms, sometimes up to 84 months.
There are two risks in the case of acquisition loans with terms that are longer than the forecast useful life of the object to be financed:
Another loan may have to be taken out for replacement purchases during the credit period, for example, because the car breaks down and repairs are not worthwhile.
However, the borrower cannot afford both loans. Existing outstanding loan liabilities can impair creditworthiness. New borrowing may still be possible, but only on poorer loan terms.
A borrower agreed to auto finance for a term of 96 months. An urgent home repair must be financed externally 72 months after taking out the car loan.
The borrower is likely to receive the housing loan despite the car financing. However, the pre-liability may have a negative impact on the level of the interest rate.
If you opt for particularly long-term installment loans, you should pay particular attention to flexible loan terms.
Pay attention to free special repayments so that you can at least partially pay off the remaining amount when taking out the new loan without having to pay prepayment penalties.
Loan offers that allow a completely free early redemption of the remaining amount are particularly consumer-friendly. However, such offers are very rare, especially with long terms.
Debt restructuring and loan terms
Anyone who has taken out a particularly long-term loan should consider rescheduling in order to reduce the total costs.
In some cases, however, the opposite case can also make sense: debt rescheduling into a particularly long-term loan.
Borrowers who have either overextended themselves or whose income has decreased after borrowing can stretch the rates in this way and, if necessary, prevent over-indebtedness.
However, the extension of the loan through a debt restructuring has its price. The total cost of the loan increases due to the extension of the term.
The mortgage loan from Good Credit is particularly suitable for rescheduling larger amounts while at the same time significantly reducing the rate.
Debt rescheduling loans are not a problem for any direct bank. Almost all credit institutions offer free debt rescheduling campaigns with the consolidation of several loans.