Younited Credit (from 2.15% TIN), ING (3.99% TIN) and Bankinter Consumer Finance (4.45% TIN) offer the best personal loans for the month of October, for any purpose.
Younited Credit (with a Nominal Interest Rate or TIN starting at 2.15%) ING (3.99% minimum TIN) and Bankinter Consumer Finance (4.45% minimum TIN) debut the month of October at the most top of our ranking of the best personal loans on the market. They are followed by offers such as those of Wanna , with its loan at 4.65% TIN, Cofidis and its personal loan at 5.25% TIN, and Sabadell with 5.5% TIN.
Now, although their interest makes them good options for those who need to get money fast , the conditions applied by the best personal loans on the market in aspects such as linkage or commissions are very different: that's why at The newbie we help you understand its fine print so that you can decide which offer best suits your needs.
To offer you the best proposals from banks, every month we update our classification of the best personal loans based on objective criteria such as the minimum interest of each offer (expressed in the form of TIN), opening commissions, study and partial or total cancellation , and the relationship that the bank requires the client.
In any case, remember that you can always compare the characteristics of all the offers on the market and contract the one that most interests you through our personal loan comparator .
What are the best personal loans? (October 2022)
The Younited Credit Loan from Younited Credit, which starts at 2.15% of TIN, is once again positioned in October as the best personal loan on the market . However, you have to bear in mind that this 2.15% is a minimum: depending on the analysis of the request made by the entity, the TIN could rise to 15.37%. In addition, this loan has an opening commission that, again, ranges between 0% and 12%, depending on the client's profile.
For the rest, this loan will allow you to request between 1,000 and 50,000 euros , to be repaid within a period between 24 months and seven years.
Personal loans: news for October 2022
Below, we summarize the main changes that banks and finance companies have made to their personal loan offer in the last month:
- BBVA has made several of its products more expensive, with the Quick Loan without Documents as the main affected: its TIN, for customers who maintain their payroll in their entity, has gone from 5.45% to 6.20%.
- Sabadell has slightly increased the TIN of its personal loan, from 5.3% to 5.5%.
- Cofidis has also changed the interest of its personal loan, from 4.95% TIN to 5.25%: even so, it remains in the October ranking of the best personal loans.
- Norwegian has made the TIN of its personal loan more expensive from 5.99% to 8.99%, the highest increase among the offers that we analyzed in The Newbie.
In addition, in the last two months, record numbers have been recorded in regards to the changes that banks and finance companies have made to their offers: in total, 27 modifications have been made to the commercial offers available on the market, of which 74% corresponds to increases in the TIN of the offers. This figure far exceeds the usual rhythm of the market (it is normal for an average of 15 changes to be registered per month) and the figures that are normally registered in a month like October (last year, for example, only five changes were detected in offers).
The last time such a number of modifications were made was September of this year (with 35 movements), already under the influence of the rate hike; in January 2022 there were 48 changes, something usual for the change of year.
How can I find cheap personal loans?
To find cheap personal loans, the first thing you should check is the TIN of each offer since, the lower this figure is, the less interest you will have to pay to the bank or finance company to which you have requested financing. However, you cannot forget about other additional costs -such as commissions- or certain requirements that could also generate an extra expense, such as the required link.
- The interest (TIN) : to know if you are facing the cheapest personal loan for your profile, it is essential that you start by analyzing the interest that the bank charges you for offering you financing . Although this is only one of the elements that influence the real cost, analyzing it and comparing it with the rest of the offers on the market will help you discover if you are facing a good alternative to obtain financing.
- The commissions : along with the interest, the commissions are what will help you know if you are facing a cheap personal loan. When you know the TIN applied by your bank, find out what extra costs you will have to pay and, with all this information, calculate the APR (the Annual Equivalent Rate, which is the variable that will indicate the real cost of the operation). Loan For example, the Wanna occupies the third position in our ranking due to its TIN of 4.65%, but it does not charge commissions, so if you request financing from the entity, the APR could be lower than that of other offers that precede it in the top 10 and that, although they charge lower interest, they do have commissions.
- The link: most banks will require you to open an account to spend the installments of the personal loan that you are going to request, or even that you meet several additional requirements to obtain financing. Although this does not have a direct relationship with the possibility of obtaining cheap bank loans, remember that there are products that do not require you to tie yourself to an entity in any way and that this can offer you, not only flexibility, but an extra possibility of saving.
- The purpose of the financing : depending on the purpose for which you want to allocate the money you request from an entity, you will see that the cheapest loan on the market may be one or the other. For example, there are student loans cheaper on the market than most traditional personal loans on the market. In the same way, if you request a loan to rehabilitate your house and increase its energy efficiency, you will be able to benefit from the new aid for housing rehabilitation approved in 2022, significantly lowering the final cost of the operation.
What is the difference between loans and personal credit?
Bank credits and loans differ fundamentally in the way in which they grant financing to the client : with the former, the bank or finance company will give you the money you need at once, while with the latter, the entity will simply put a certain amount at your disposal for you to use as you see fit. In addition, with the loans, the bank will charge you interest and will begin to claim your debt from the first month of the product's life. With a credit (sometimes also called 'personal credit', although this terminology is not the most appropriate), on the other hand, you will only pay a fee to your entity at the time you decide to use the funds that it has put to your disposal:
- A personal loan is an operation in which a financial institution delivers money to the client, who has the obligation to repay the amount borrowed, together with the interest and the rest of the expenses derived from the operation (such as commissions), in a certain time. . For example, any of the offers you will see in our monthly ranking are personal loans.
- On the contrary, a personal credit is an amount of money that a financial institution makes available to the client for a period of time. This amount is not given to the client at the beginning of the operation, but rather he will be able to dispose of it according to his needs, using an account or a credit card. In this case, only interest is paid for the amount that has finally been drawn down. It is common for a credit or personal credit to also charge a commission on the unused balance.
To find the cheapest credits, you must take into account the interest, the commissions and the link , just as it would happen if you want to request a personal loan. Although the first is the factor that has the most weight in determining whether an offer is expensive or cheap, you cannot ignore the others if you want to know the real cost of requesting financing.
- The interest (TIN) : it is the main indicator to understand if you are facing one of the cheapest personal loans on the market. This concept refers to what the bank charges you for offering you financing and will allow you to compare the offer that interests you with those of the rest of the market.
- Commissions : Knowing the commissions that the bank will charge you for granting you a loan (or personal credit) is essential to understand the real cost of one of these products. In fact, the TIN and the commissions are the two variables that will help you calculate the APR , which is the indicator that really takes into account all the costs that a loan will have for you.
- The link : some banks will ask you to contract certain extra products or services (such as a payroll account) to access their cheaper personal loans. These will not always have a cost for you, but they can limit your flexibility to change banks and, for example, take advantage of promotions that give you cash for direct debiting your salary.
What does the interest on a personal loan mean?
The interest on a personal loan is, in essence, the 'price' of the loan , that is, what you will have to pay the bank or finance company in exchange for being granted financing. Of course, this price does not have to reflect the real cost of a financing operation. Other issues, such as commissions or related products (and their cost) will also be decisive when calculating the real interest of any personal loan.
Next, we show you some keys that it is important that you take into account to understand what the interest of a personal loan means and how you should analyze it to know if you are facing an interesting offer:
- When requesting a personal loan, a bank or specialized company gives you a certain amount of money, which you will have to repay within the agreed period, together with an addition that is equivalent to the interest on bank loans : that is, what an entity pays you to be charged for the risk involved in the operation.
- The interest of a personal loan is usually set by each entity in its standard offers, but it can also be conditioned by the result of the risk assessment that they carry out. If you are a solvent client, with a high level of income and without debt, your chances of getting the interest on the bank loans you want to contract are reduced significantly increase.
- Low interest does not necessarily equate to a cheap loan . If you are interested in applying for a low-cost loan, it is important that you take into account other factors beyond what interest rate applies to a personal loan. We detail them in the following section.
To request a personal loan you will need to prove your identity and your income , and provide proof that you have not incurred defaults in the past, that is, that you are a solvent customer.
- You must be of legal age , have a valid identity document and reside legally in the country .
- You must present proof of income and prove your solvency : this will help the bank or finance company to verify that you have the necessary economic capacity to repay your debt. Depending on your profile and the type of loan you request, you may have to submit additional documents, such as a copy of your employment contract or your personal income tax return.
- You cannot be part of defaulter files such as Asnef or RAI: the most common is that, if you have incurred defaults in the past, no bank is willing to grant you financing. In the same way, if you have outstanding debts , you may find it difficult to request a personal loan -even if you are up to date with your payments- if the entity estimates that you have reached your maximum borrowing capacity.
There are tools, such as our loan comparators, with which you can contract online personal loans quickly and easily: today you do not need to go to a bank branch to get one of the best personal loans on the market.
Now, it is possible that the idea of getting money quickly and without having contact with a bank branch generates some mistrust or, at least, doubts about how the whole process will be carried out. In this sense, you should bear in mind that the processing of online personal loans is practically the same as what you would do when you visit an office in search of one of the best personal loans, but everything is done digitally and via messenger:
- First of all, you will have to send the documentation required by the entity from which you are going to request money.
- With all the documentation – which will arrive via the Internet or by courier – the bank will analyze your profile and decide, based on your income and debts, whether it can grant you an online loan or not. If you want to apply for a loan with a low payroll, your chances will be reduced, but your application could prosper if you have no debts and you are a good client of the entity from which you request financing.
- If so, the entity will contact you to inform you that you can dispose of that money and will ask you to sign several documents. This last step to take out personal loans online can be done at the bank offices of the corresponding entity or even online.
Which banks grant online personal loans?
Almost all banking entities - large and small - market their products through their web pages, facilitating the request for personal loans online for those who do not have time to travel to branches and speeding up the granting procedures. In fact, there are companies, such as Bank Norwegian and Oney , that are specialized in granting this type of product.
Now, if requesting a personal loan online scares you a bit, at The Newbie we want to reassure you: online financing offers have the same guarantees as traditional ones. In addition, its processing is practically the same as the one you would carry out in a visit to an office.
Personal loans with Asnef: how can you get them?
In the market there are companies specialized in granting microcredits that usually advertise that they accept Asnef, the most common delinquent file, as a hook for potential clients who would have difficulties obtaining financing if they requested a traditional personal loan. Traditional entities will automatically discard your application if you have incurred defaults in the past. The reason? The risk analysis they carry out when evaluating your profile will show them that you are not a good candidate to grant financing.
For example, in our monthly ranking of the best microcredits you will find the 10 most attractive offers available today to get between 50 and 1,000 euros, immediately and, with a return period of 30 to 50 days. None of the entities included in the ranking will automatically rule out your application for being in Asnef. Of course, remember that microcredits grant less money than traditional loans, that their repayment term is shorter and that their fees can significantly increase the real cost of the operation.
Personal loans from La Caixa, Santander and BBVA: are they interesting?
When looking for the cheapest loan, perhaps your first impulse is to consult the catalogs of the three largest banks in the country, that is, look for personal loans from La Caixa, Santander or BBVA. However, you will only find offers from the last two in our monthly ranking. The reason? There is no standardized information on personal loans from La Caixa : the entity does not offer information on its web pages about the interest it applies to its financing products, which prevents us from taking them into account for our ranking of the best personal loans. Of course, if you are interested in personal loans from La Caixa, all you have to do is go to your nearest office and request information.
In the case of BBVA , the entity does offer standard information on its offers, and, this month, its Fast Loan Without Documents falls out of our top 10 after raising its interest to 6.2%, in the case of not direct debiting the payroll . In any case, this offer is also very interesting for those looking for loans without changing banks , which allows it to be part of our ranking of the best loans without payroll .
As for personal loans from Banco Santander , its Winning Loan is left out of our monthly ranking of the best personal loans, increasing its TIN from 6.25% to 6.85%.
ING loan: is it the only one without commissions?
No, it is not. In our top 10 of the best loans there are a total of four proposals that, for example, will not charge you anything for the opening. ING's business strategy has meant that, over time, the bank of Dutch origin has become a benchmark in commission-free banking , both in terms of its bank accounts and in terms of its banking products. financing. Now, that does not mean that the ING Loan is the only one on the market that does not charge commissions or that it is the cheapest loan you can take out today.
Another issue that you should pay attention to is the early repayment commission , which is the one that is paid if you want to repay your debt (or part of it) ahead of time. In this aspect, the ING Loan also wins, since it does not charge anything for this concept. In this way, if you contract it and want to finalize the operation in advance, you will be able to do so without incurring any cost.
Conclusion: what are the best personal loans for October 2022?
Younited Credit (2.15% minimum TIN), ING (3.99% TIN) and Bankinter Consumer Finance (4.45% TIN) are the best personal loans for October 2022, as you can see in the summary table.
Younited Credit (2.15% minimum TIN), ING (3.99% TIN) and Bankinter Consumer Finance (4.45% TIN) are the best personal loans for October 2022, as you can see in the summary table.
Criteria for making the rankings
The criteria that we have followed to prepare our top 10 cheapest loans on the market are:
- Those with a lower TIN.
- The ones with the least commissions.
- Those with fewer bonding requirements.
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