LOANS, TIPS FOR MAKING THE BEST CHOICE
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A personal loan is a contract in which that debtor commits to repay the cash loan in monthly installments (the customer receiving the money) and paying a rate of interest as compensation to the creditor (the financial institution). The guarantee of repayment of the debt is personal, with all revenues, rights and assets present and future.
Quotas are consistent and follow the same model as the mortgages, the French system of depreciation. In personal loans, unlike loans, may be to dispose of amounts already redeemed, with which the Contracting Party has at its disposal a line of credit with a limit available. To know more about the products that take party to our money, can download free our guide of saving.
4 tips to choose the right loan
It is very important to be clear what type of loan or credit is good for us and is better suited to our needs.
- To begin, there must be clear if the purpose of the loan conforms to our. There are loans that are granted only to buy a car, to reform the housing or financial College. Less attractive for the Bank is that we want to reunify the loan debt, being impossible if there are defaults.
- The type of interest TAE that is we apply is very important. Not us have that fix only in the fee, since there are loans that by be of little amount offer monthly payments low and, instead, the type of interest is so expensive as them cards of credit (more than one 20% TAE). Many quick loans, granted more easily than normal branch, have very high financial costs, which must be assessed.
- Choose a time that allows us to pay the fee in a comfortable way without stretching it more than necessary (since more term plus interest just paying at the end of the loan). The majority of loans of this type have maximum limits of between 5 and 8 years; only make sense to extend the deadlines if what is funded is an investment or expenditure in the long run, as a reform.
- Know the bonding required and products additional that we have that contract; many times the TAE is interesting for us, but if we start to add the costs of the insurance that force us to employ, if we have to hire an account with commissions, etc., is that it is more expensive than one with a higher TAE. It is best that bonding is minimal or non-existent, if we choose.