We at Good Finance have over the years learned something about loans. Therefore, we have now produced a super guide where we have gathered the most important things to think about step by step when thinking about borrowing money.

Borrowing is a decision that will affect your personal finances for years to come, which means that many things should be thought through carefully and carefully. Our list is based on the most common mistakes made in connection with loans, as well as other important things that are often forgotten or that people are not aware of.

Do you really need to take out a loan?


It is always good to think about what possible loan money should be used for. So-called consumer loans (loans for, for example, clothing and electronics) are often associated with “unnecessary” loans with high interest rates, short repayment periods and products that quickly fall in value. A TV can be several thousand dollars more expensive if you finance the purchase with a loan.


  • Do I really have a need?
  • Is it worth the extra cost?
  • Do I need it right now?
  • Can I instead save up for the thing in question until I can afford to pay?

Also, keep in mind that you are usually more motivated to save for something you really want than paying back for something you already own. So avoid borrowing money unnecessarily – it is unfortunately a pretty good way to end up in financial trouble.

Always compare when to take out a loan

Comparing interest rates is the single most important tip we have for you at Good Finance. Why? On the one hand, there is a big difference in interest rates between different banks, and on the other hand, all banks set the interest rate in different ways. The more banks that compete for you as a customer, the more likely you are to find the bank that offers you the lowest interest rate. You may be lucky to hit the right bank at the first bank you apply for, but it is more likely that you will not. In addition, there is a major problem with comparing loans on their own:

A new credit report is registered for each bank you compare loan terms with. Many credit information in a short period of time degrades your credit rating and thus your chances of a good interest rate. Comparing banks yourself is also very time and energy consuming.

More and more people realize that loan brokers are solving these problems. Instead of comparing yourself, the lender does the job for you with only a single credit report even though several banks are compared (often over 20). This way you increase your chances at a good interest rate without compromising your credit rating.

Why Compare Loan Terms at Good Finance?

  • Different banks and lenders give different interest rates on the same loan
  • To feel confident that you have received the best possible interest rate
  • It costs nothing, is simple and goes fast
  • Over 30 banks are compared on a credit report

I want to compare loans now!

What type of loan should you take?

What type of loan should you take?

There are a number of different loan types to consider, where the biggest difference lies in whether the loan requires collateral or not. Private loans (eg consumer loans and car loans) are just like fast loans (eg SMS loans) loans without collateral. Mortgages, on the other hand, are associated with a collateral (often in the form of a cash deposit) as the loan amounts are considerably larger. Read about the various loans to find what suits you.

Avoid taking SMS loans!

If you decide to take out a loan, you should avoid the moderately popular fast loans or so-called SMS loans. If you can’t afford to pay today, you probably can’t afford 15-30 days even when the invoice is due.

The interest rate can be affected when you take out a loan

Of course, it costs to borrow money. The interest rate (the cost of borrowing money) varies depending on several things and thus affects your monthly cost. Most of these things can actually affect yourself, which means that you have the power to influence your borrowing costs.

Factors affecting:

  • Loan amount and repayment period: do not borrow more than necessary and repay as soon as possible.
  • Choosing a bank: expose the banks to competition – compare their loan terms! (See next point)
  • Your credit rating: affects what interest rate you receive, read more about credit rating here.

Interest rates are a big and important part when borrowing money. Therefore, we have gathered everything you need to know about interest rates; how to get the best interest rate, whether you should have tied or fixed in this guide .

Review old loans and credits: Ability to collect?

Review old loans and credits: Ability to collect?

Do you have any previous loans, credits or installment purchases that you still have not repaid? If you are going to take out a new loan then make sure to back these into your new loan by taking them into account in your new loan amount, which is called collecting loans and credits. This way you clean up your finances, which increases your chances for even better loan terms in the future.

Collect Loans Now!

Want to read more about how you go about it and about how one of Good Finance’s customers saved SEK 36,000 by collecting their loans and credits? Here’s the guide for you .

Don’t forget “Effective interest rate” when taking out a loan

A common mistake linked to interest rates is to look only at the nominal interest rate. The effective interest rate includes all costs associated with the loan, e.g. fees such as avi fee and setup fee which affect the total cost of your loan. So always look at effective interest rates when evaluating your loan offers!