A credit calculator does not necessarily have to appear under the term “loan calculator”, which is entered into the search engine. Most of the time, these are simple loan comparisons by individual providers. Here, too, loan comparisons from the same provider can often be found.
However, these are neither independent nor do they offer a real overview of the various offers that can be found on the market. Most credit calculators also do not answer the question under which conditions a bank is willing to grant a particular loan and under what conditions.
Functions of credit calculator
A real and user-related loan comparison takes place only in the rarest of cases. This is often related to the individual functions of a credit calculator, which determine which information they use and which they do not collect. Most online loan calculators are satisfied with the details of the loan amount, the term as well as the desired monthly rate and the purpose.
After entering the data, it is compared with the loan offers taken into account in the computer and sorted according to the amount of the effective interest to be paid there. With another click, the loan request is made to the desired provider. The actual informative value of such loan calculators is extremely low.
Because not all cheap credit providers are taken into account equally, but only those with whom the respective portal also maintains a business relationship. However, the fact that the advertised interest rates are not a good benchmark is much more decisive, since no creditworthiness criteria are included here.
The interest rates shown often turn out to be completely unrealistic, as they are almost never granted unless you have a good credit rating that is beyond any doubt. The latter, however, is hardly considered. It may well happen that a well-placed provider ultimately does not grant the applicant a loan.
An effectively designed loan calculator should anonymously query as much data as possible online that is necessary for a serious loan application. As a result, only the providers who would also be willing to grant a loan in the specific case should appear. But even then, reasonable results would not always be guaranteed.
The reason for this lies in the different award criteria of the banks. Because the data collected for creditworthiness are valued quite differently there. The individual award criteria are also subject to very different fluctuations over time. Some information may have led to a rejection yesterday, but a month later it no longer poses problems for lending. Not all of the information can be queried without significantly jeopardizing the status of anonymity.
Only if anonymity is respected is it possible to provide information such as personal circumstances, any debts (whether there is a Credit bureau entry) and income and assets. The respective place of residence and the address of the applicant can also have a negative or positive influence on the credit score.
There is an alternative to credit calculator
Serious credit brokers, for example, offer a possible alternative to credit calculators. These also offer a free but substantially professional loan comparison within their range of partner banks. Most of these financial service providers process incoming credit inquiries “by hand” and not with the help of automated standard inquiries. Through personal advice, even customers who have only a medium to poor credit rating receive a fair credit opportunity.
The majority of online loan calculators are mostly only suitable for those groups of people who have secure employment and a correspondingly high salary. Because only they ultimately have the best scores if there is no or very little debt. For the rest, however, the meaningfulness of the common credit comparisons is not very helpful or even particularly reliable.