Therefore, both the APR and the debtor interest rate rise in both 3 or 4-digit amounts. But still, you can use the AP rate to select the cheapest short-term loan when choosing from different providers of this loan type. At the same time, it also gives you a clear indication of how expensive this type of loan is compared to other types of consumer loans. A visit to will offer the best deal.

Choose a consumer loan rather than a short-term loan

Should you borrow a smaller amount, e.g. a few thousand dollars, many are tempted by the short-term cash credits. It is the type of loan that the previous SMS loan providers have switched to after the government introduced 48 hours of reflection time on loans with a maturity of fewer than three months. The disadvantage of these short-term loans or overdraft facilities is that they have some relatively right interest rates and fees and that they have to be repaid over just 3 months. It can turn into quite a lot of money to be taken out of your private budget each month – even if you’ve only borrowed a few thousand dollars.

Loans close to 5,000 kroner are cheaper to take as consumer loans

The closer the amount you need to borrow comes to $ 5,000, the better it is to choose a traditional consumer loan rather than the short-term loan. They usually have DKK 5,000 as the minimum loan amount. If you only have to borrow DKK 3-4,000, it can actually pay off to raise the loan to DKK 5,000. By taking the loan as a regular consumer loan, you get the option to pay off the loan over 12 months rather than just 3 months.

It offers some much easier repayments and a much more favorable OPP. In other words, it means that it will be much cheaper for you to borrow the money and that you get more air in the private economy every month by taking the loan as a consumer loan rather than a short-term cash loan. But do not opt ​​for a longer repayment period on the consumer loan than one year. For example, if you choose 24 months instead of 12 months, you end up paying just as much in interest (in dollars and ears) for the consumer loan as for the short-term cash credit.

Always read the loan contract before approving the loan

It may sound like something your parents could think of to say to you. But there are actually several good reasons why you should read the loan contract before signing your loan with NemID. First of all, the loan contract contains the actual terms and amounts that apply to your particular loan agreement. Here, you must pay particular attention to the amount of the loan contract that you have to pay in monthly installments.

This is the amount your personal finances are charged each month and therefore the amount you need to be sure to have available month after month throughout the term of the loan agreement – regardless of the amount that was in the loan calculator on the website. Also, check the provider’s fees for defaulting on the loan agreement.