With the help of a cash loan, we can quickly finance a purchase we couldn’t afford with a one-off payment. In the 21st century, we can apply for credit online, and the formalities are completed on the same day. Although consumers are protected by various laws and legal provisions, it is still worth being vigilant when dealing with the bank. What should you pay special attention to when applying for a cash loan?
Additional fees charged by banks
Popular hooks in the loan agreement are all fees that the interest rate does not inform us. We already bear the costs when we sign the contract. The bank charges from a few to several percent commission for granting a liability.
The loan agreement may also include insurance, as well as other forms of collateral used by banks to obtain a repayment guarantee. When analyzing the cost of credit, you should be extremely vigilant and pay special attention to all issues that concern us.
The APRC will tell you the truth
Banks most often tempt us with attractive nominal interest rates. Bah! We can meet with offers in which the loan interest rate is 0%! Everything is correct, except that the nominal interest rate is only one of the costs of the loan. It informs us of the interest accrued for the commitment.
What about commissions, insurance and operating fees? The APRC informs us about the real cost of credit, i.e. the actual annual interest rate. This indicator takes into account both the nominal interest rate and all other fees.
What to consider when choosing a loan?
If you do not have extensive financial knowledge and are planning to take a large loan, it is worth consulting with a financial advisor. A visit to a specialist does not have to be expensive, and it will bring us a number of benefits. The adviser will study the contract proposed by the bank and check it for any hooks.
What’s more, maybe he will advise us on a better product at another bank, thanks to which we will additionally save on costs. A visit to a financial advisor can be a good investment that will pay off when you sign an attractive contract.