How to choose a cash loan and which bank? Comparison of cash loans at banks. There is no such thing as cheap cash loans for everyone. Each of us has a different creditworthiness and creditworthiness. The easier access to financing is, the more expensive the product is.
Banks verify their client very carefully and thoroughly examine the creditworthiness of the client. Loan companies also calculate the ability to repay the liability, but:
1) are less restrictive about the ability assessment,
2) they borrow money from their own capital (and not like banks from accumulated customer deposits),
3) A loan in a loan company must be more expensive than in a bank.
Private loans are a separate group and here we strongly discourage the use of this source of financing, as it does not necessarily have to be the cheapest solution.
What cash loan? Review of banks
A loan or loan commission is a very important component of the total cost of the liability. Do not let us misinterpret advertising slogans such as: ” cash loan at 0% “, ” we lower the interest rate by 80% “, ” only this month cash loan at 3.99% “. There is always something for something. Especially when it comes to money. No bank or loan company will lend us, unless it calculates that it pays for them. By lowering the interest rate, you should increase the commission or other costs so that the profit agrees.
Before making a decision about the choice of institution in which we take a loan, you must first count all our obligations that we pay back. Why? Because in the case of loans and cash loans we give away much more than we borrowed. These are expensive financial products.
The total cost of a cash loan is a very important element of the information form, alongside its APRC. We can compare several of the same loan offers on the basis of it.
For example, you want to know what is the cheapest cash loan of PLN 14,000. And what can you notice? That if the nominal interest rate is still very low, the commission is already at a high level and can reach up to 20% of the loan costs. It can also be the opposite…
Long or short lending period
If you are already opting for a loan or a cash loan, it is best to choose the shortest possible loan period if possible. As explained by Philip Barcos, blog expert. Cheap Cash Loan Not for Everyone, borrow only as much as we really need and for the shortest possible period of time, so that the cost of such a commitment is as small as possible. At the same time, it should be approached rationally. The shorter the loan period, the greater the installment, and therefore difficulties in its timely repayment may occur, which in turn may lead to serious financial difficulties.