How To Choose The Cheapest Personal Loan
23 Jan 2015 in Finance
In the current economic situation and the existing high rates of unemployment is best not borrow if not absolutely necessary.
If you have no choice but to ask for money to cover your basic needs; or if you’re the adventurous who want to do more superfluous but important as purchasing a car, go on vacation, celebrating an event … is important to have clear two points, first and foremost is to know what a loan and then how to get the cheapest personal loan.
What is a Personal Loan
A personal loan is a loan of money you receive and you have to pay back with interest over a period of time by monthly. The interest rate that the financial institution applies to us, along with time are the most important variables to know what we are facing economic burden for repayment of the loan you need.
In addition to loans, which are returned by installments within a specified period, identical to mortgage loans but with the sole responsibility of the person’s signature and any guarantors, there are personal loans. Credits can have identical performance to loans if the borrower returns through monthly installments, but the difference is that, based on what is established in the contract, the customer can make further provisions money. Work very similarly to credit available on a credit card.
Choosing the Cheapest Loan
For starters, if we doubt between choosing a loan or a credit card to apply for the money, we should not doubt, is much cheaper personal loan. A loan has an interest rate that generally ranges between 8% -12%. By contrast, the interest rate on credit cards is much higher, between 18% -25%. On the issue of fees, a personal loan has fees, study and partial or complete, usually paying back. The best thing clear is that the commission is 0%, in any case should not exceed 3%. A personal loan with a commission of 1% is in the market average.
We should not ignore the cost of default interest and expenses for the return of a receipt in case of default. In this case may very expensive cost of a loan. In case you want to negotiate with our financial institution a reduction of cost of borrowing two main fronts: payment guarantees and linking to the bank.
Finding the Best Loan
To find the best loan, especially the one that best suits our needs we must consider four basic aspects.
Visit offices or websites of financial institutions of which we are interested in their loans.
It is important to define what kind of loan you are looking for, mainly influences this point its purpose. Not the same request money to buy a car, to study or go on vacation.
Discover and find personal loans that are sold today. At this point better than visiting the powerful personal loans comparison saving offers users completely free.
After studying all loans last step is to choose the one that best suits your circumstances.
The Car Loan Made to Measure
In addition to the points above to find a good personal loan, there is another key factor: the purpose of money requested. Some aims banks less interested than others; for example, probably less interested in financing a financial institution are loans to consolidate other debts. The reason is simple: money is lent to a person who has demonstrated not know or be able to balance your income and expenses, with the risk that entails.
However, loans and credits which aims to fund a family investment, is the study of children, reform of the house or buying a vehicle, rather more interest to the lending banks. In this case, see these goals as an improvement in the situation of applicants, not just an expense. In the case of loans to buy a car, a motorcycle or van, the improvement is based on the increased mobility or labor and trade issues (car we bought for work, for example). Best interest rates are usually offered for these purposes, but have some money saved to contribute is considered a very important role in granting point.
If you follow these guidelines and tips are sure that you will save a lot money with personal loan that you contract.