How to choose a cash and installment loan? First of all, it should be noted that low interest rates on loans are often just a marketing ploy. Banks and financial intermediaries using such rhetoric usually earn high commissions.
Where is the best place to take a cash loan?
If you need a loan, it’s easiest and usually the cheapest to get it at the bank where you have an account. A revolving loan for account holders can be recommended. You will pay interest only on the debt, not the full loan amount. Each payment reduces your debt. In addition, you will pay a lower commission.
What to choose – cash or installment loan?
A cash loan (also called a loan) is attractive because the bank does not penetrate what the money will go for. He pays them and waits for a refund. On the other hand, the installment loan is transferred by transfer, e.g. to the account of a shop or tourist company, which you have to pay for a TV set or a trip to Egypt.
How much money to borrow and for how long?
You can borrow quite a lot, even $ 100,000. It all depends on your earnings and expenses. It can be generally assumed that if you have savings in the amount of e.g. $ 10,000 – 20,000 and your monthly inflows minus expenses are not lower than $ 1,500, you can easily count on $ 70,000 – 80,000 cash loans. Sometimes a bank can credit 100%, and sometimes 80-90% of the value of the good you want to buy. The loan term can be up to five years, and the longer it is, the higher the interest rate will be.
What are the cash loan collateral?
At lower loan amounts, simply sign a promissory note. Higher amounts may require giraffes. Other conditions that must be met to apply for a cash loan are having a permanent job (or running a business) and presenting a statement of earnings.
How to choose a cash loan best Lombard loans
Such loans are an offer for those who need cash, for example, do not want to lose their bank deposits (in order not to lose interest) or sell securities or bonds. Banks can borrow money against these assets. Unfortunately, for a short time and usually a rather high percentage. Interest will be deducted in advance from the amount borrowed.
Their representatives are in almost every store with durable goods. They offer a loan without any formalities – usually a salary certificate and ID card are all you need. It’s just that the commission on such fast money is higher (6-9% instead of 1-3%) than in the bank, although the interest rate is similar. Where do the brokers get the money from to make such loans? Of course, from banks, only that they lend them in bulk, which is much cheaper than the average Powalskie.
How to choose a cash loan?
First of all, don’t be fooled by low interest rates. Remember that banks earn commissions. Also carefully look at the offers of credit intermediaries.
The effective interest rate tempted by some banks and intermediaries is lower than the nominal annual. Often the amount of monthly installments is indicated in the ads – here also demand the nominal interest rate, because only it allows you to compare offers and choose the best one.