Advantages and disadvantages of loans

Financial independence

Loans fulfill wishes, such as the dream of a home

Surely the biggest advantage of having a loan is that you get a bigger amount of money within a very short time. In addition, a loan application is processed quickly, so now only a few working days are necessary until the desired money is in the account. Another plus is that there are a variety of different types of credit. Accordingly, there are the right loans for almost every wish. For example, using a real estate loan, it is possible to quiet your own home or condominium . But among other things, the car loan is very popular, with the help of which you can easily and quickly buy a new car. Even your own wedding including honeymoon is financed by a loan.

But the great journey that has always been dreamed of can also be realized in this way. The inclusion of a loan thus ensures that it is possible to finally implement their own ideas. Thus, a loan is much more than “just” a kind of legal money procurement: it can serve, for example, to realize dreams or to master emergency situations.

Likewise, the repayment is very simple: usually this takes place by monthly installments. So it is not necessary to pay back the complete sum at once. A loan thus offers a multitude of advantages that can not be denied.


Own financial situation must be clear, rates must be paid.

A disadvantage is a loan if, before its inclusion, its own financial situation was not considered. After all, the monthly installments in the agreed amount must be paid regularly. If there is little cash left over for the remainder of the month after paying the installment, it may be difficult to pay for the others, current bills and shopping.

However, anyone who plans well here and thinks a long way into the future is certainly on the safe side. In addition, it is recommended to schedule a certain “buffer”. This “buffer” can also be referred to as “iron reserve” or similar. This is simply a certain amount that is covered for a variety of emergencies and not touched otherwise. If, for example, once a month, various unforeseen events come together, for example if the washing machine is broken, the dishwasher needs repair, or if the car has to go to the workshop, then the “buffer” is extremely helpful. Because with his help, the various bills can be paid and still the monthly installment can be paid here easily.

Reasons for a loan

New vehicle, honeymoon trip and much more: credits are versatile.

There are many reasons for accepting a loan. For example, anyone who has to drive to work every morning has to rely on a mobile pedestal. If this suddenly strikes, it is necessary to buy a new car. Since hardly anyone has the money necessary for this purpose in the current account , a loan here is a sensible option to get to the required car.

But the dream of a home can usually only be realized through a loan. But loans can also be used for other things. Thus, for example, it is feasible to pay for your own wedding, the honeymoon or the long-awaited dream trip. Modernization and renovation are also good reasons for a loan.

But a rescheduling is a sensible measure. This will, at best, eradicate all existing debts so that it is only necessary to pay off a single monthly installment for the loan.

However, it is important that you think about your own financial situation in advance.

So the rates should correspond to their own financial framework. Usually before the conclusion of the loan agreement it is feasible to go over the installment size with the banks and accordingly also the term of the loan. So it is quite feasible in a certain frame, to “choose” the desired payment method.

Loans at a bank

Often the first contact: the house bank

Loans can of course locally, such as the bank or other financial institution are requested. Here, the advice as well as the conclusion of the contract. If there are any questions, they can of course be asked immediately. The loan amount in question is credited to the checking account within a few working days. However, it is advisable not to “strike” immediately at the first credit offer, but to compare the various offers well together. Because the various offers often differ significantly from each other, so that quite a lot can be saved with a comparison.

In addition, it is advisable to ask not only at the house bank for the desired loan. Today, there are a large number of banks offering a wide range of offers. Accordingly, it is ideal to ask not only the house bank for a loan, but also at various other banks to make an appointment and to inquire. In many cases, it is usually the case that the loan offers differ significantly from one another, which can save a good selection.

It’s a good idea to use a credit comparison for a quick, easy comparison of the different loan offerings. Here, the various loans are clearly listed, so that it is usually very quickly feasible to make a decision.

Online loans

Loans over the Internet.

Online loans are, as the name implies, completely requested over the Internet. For questions usually a phone number and / or a chat or other contact option is given. The legitimation is usually done either by PostIdent or even by video ident. Again, the payment of the loan amount takes place within a few working days on the current account. As with on-site credit, it is also advisable for an online loan to compare the various offers from different banks.


Loans offer a variety of benefits.

A loan thus offers many advantages that speak for themselves. Thanks to such a loan, the most diverse wishes can be fulfilled. Repayment is easy in the form of monthly installments. All that is needed is to think carefully about one’s own financial situation in advance, so that repayment of the installments can be carried out without difficulty.