Are you expecting more money? Thinking about the loan, but you can’t choose the best one? In life, we are faced with situations that require more money at a time. In most cases, we are not able to save and redeem that amount of money from our own resources. Here it is good to use the possibility to borrow from the bank or other credit companies. It is mainly the purchase of your own apartment or car, or the payment of relatives in inheritance proceedings.
What we mean as meaningless indebtedness is, above all, situations where the repayment of the loan takes much longer than the useful life of the thing. For example, holiday loans or Christmas gifts. Be really careful about this.
Let’s take a look at the basic rules when deciding on a loan and its type.
How to choose the right one among all loans?
One of the most widespread loans is the CONSUMER loan. It can be used, for example, to acquire a car or to equip a property. Its big advantage is the speed of processing, when some banks are able to approve consumer credit within 30 minutes. There is no need for collateral, but it is redeemed by relatively higher interest.
Upon acquisition of real estate mortgage loans will use most often. This is characterized by the need to secure real estate. Its great advantage is the relatively low interest and the possibility of repayment for several decades.
The loan can be used even if you do not have a large one-time spending, but you want to be sure that your regular payments (rent, direct debit, …) will always leave your account. In this case, it is possible to set up an OVERFLOW loan, which will allow you to go to minus on your current account. You repay this loan with each incoming payment to your account.
If you already have loans and are not able to repay individual loans, you can use the CONSOLIDATION loan. It allows to combine several loans from different banking institutions into one and set the length of repayment and thus the amount of monthly payments.
What to be careful about when choosing a loan?
Although various financial institutions are tempting us for very low interest rates and low-interest loans, we must really choose very carefully and well. In particular, the APR can help you make the right choice. Its value shows us the total amount we pay each year for borrowed money. Therefore, the APRC not only shows us interest, but also counts on all fees and borrowing costs.
6 good tips:
- You never knowingly lie in your loan application
- Check who wants to lend you
- Just borrow as much as you need
- Do not borrow for nonsense and enjoyment
- Don’t tell anyone stranger for his loan
- Keep track of your finances
How to recognize usurers?
- Lending small amounts in the order of thousands or tens of thousands.
- Lending without confirmation of receipt for only two identity documents.
- Lending without a guarantor and without sufficient income, pressure on inadequate collateral for real estate loans even at low amounts.
- Lending without verification of client’s solvency in bank.
- Lending fast – money today.
- Lending for a fee in advance.
- Lending by a private company without a bank license.
- Lending subject to life insurance with financial penalty for premature cancellation of the insurance contract.
- Lending cash to hand home without checking the flow of money.
- Loans for APRs above 30% at a Cream Bank interest rate of, for example, 3% (common examples of usury are over 100% APR).