Do you expect more money? Are you considering the loan but can not choose the best? In life, we are faced with situations that require more money at a time. In most cases, we cannot save and recover this amount of money from our own resources. Here it is good to use the possibility of borrowing from the bank or other credit companies. It is mainly about buying your own apartment or car, or paying relatives in inheritance
What we mean by meaningless indebtedness are, above all, situations in which it takes much longer to pay off the loan than the useful life of the thing. For example, holiday loans or Christmas gifts. Be really careful about this.
Let's look at the basic rules when deciding on a loan and its type.
How do you choose the right person among all loans?
One of the most popular loans is the consumer loan. It can be used, for example, to acquire a car or to equip property. Its big advantage is the speed of processing, when some banks are able to approve consumer credit within 30 minutes. Collaterals are not needed, but they are refunded at a relatively higher interest.
When you get a mortgage you will use it most often. This is characterized by the necessity of real estate insurance. Its main 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 make sure that your regular payments (rent, direct debit, ...) will always leave your account. In this case, it is possible to prepare an OVERFLOW loan, which will allow you to go into negative on your checking account. You pay off this loan with every payment received into your account.
If you already have loans and are not able to repay individual loans, you can use a consolidation loan. It allows to combine several loans from different banking institutions into one and to determine the repayment period and, accordingly, the amount of monthly payments.
What should you be careful about when choosing a loan?
Although many financial institutions tempt us to get very low interest rates and low interest loans, we should really choose very carefully and well. In particular, APR can help you make the right decision. Its value tells us the total amount we pay each year for the money borrowed. Therefore, APRC shows us not only the interest, but also all fees and borrowing costs.
6 good tips:
- You never intentionally lie on your loan application
- Check who wants to lend you
- Just borrow as much as you need
- Don't borrow for nonsense and enjoyment
- Don't tell a stranger about his loan
- keep track of your money
How do you recognize loan sharks?
- Lend small amounts in the thousands or tens of thousands.
- Lending without confirmation of receipt of only two identification documents.
- Lending without a guarantor and without sufficient income put pressure on insufficient collateral for mortgages even at low amounts.
- Lending without checking the solvency of the client in the bank.
- Quick Lending - Money Today.
- Lending for an upfront fee.
- Lending by a private company without a banking license.
- Lending subject to life insurance with a penalty for early termination of the insurance contract.
- Cash lending for home delivery without checking money flow.
- Loans for annual interest rates greater than 30% at a generous bank rate, for example, 3% (common examples of usury over 100% APR).