Credit Information Bureau Credit Trend 2017 report indicates that we often reach for bank loans in the case of higher amounts than those offered by companies from the non-banking sector. What distinguishes cash loans and how to look for attractive offers? Not everyone wants to finance a specific expense.
Many people take out loans for different needs, which is why cash loans are appropriate. Banks do not require declaration of the purpose of spending funds. Even if a question appears on the form, the answer is not binding and does not significantly affect the assessment of creditworthiness.
How to choose a cash loan?
A favorable cash loan is one that:
- takes into account the borrower’s financial capacity for repayment,
- was chosen from many offers,
- characterized by low costs,
- it is distinguished by a low total repayment amount.
The cheapest cash loans are characterized by the lack of unnecessary costs and the lowest possible commission associated with borrowing money. They do not impose an obligation on the borrower to use additional banking products, e.g. insurance or setting up an additional account.
What to check in the cash loan agreement?
Before taking out a loan, it is necessary to read the content of the contract. We usually briefly review the records, hurrying or feeling pressure from people in the queue. Remember to at least check:
- total cost of the loan, which results from interest and additional charges for banking services,
- the amount of the installment so that it corresponds to financial possibilities and does not damage the household budget,
- interest rate – the bank may apply fixed or variable interest rates,
- commission – should it be paid before the loan is disbursed or will it be included in the loan and spread over installments.
Just in case, the contract should be read carefully at home. If in doubt, you can contact the bank. The consumer also has the right to withdraw from the contract. He has 14 days to do so and does not have to give reasons for his decision to resign from the loan. Of course, this involves the return of all borrowed funds.
Credit offers – where to look?
Many people decide to take a loan without first getting acquainted with the offer of various institutions. The fact is that the cash loan offer is constantly changing. Banks adapt it to the expectations of consumers, to the current season of the year (e.g. holiday loan), introduce promotional interest rates and various promotions that are designed to attract customers.
It is worth knowing that the difference in costs between the various offers, which are so important for loans, can be as much as several thousand dollars! You have to be up to date with offers, but you do not need to visit each bank branch separately. Cash loan offers include rankings available on the internet.
Lists of the best loans
Many portals provide lists of loan offers that are very useful in choosing a specific bank and its offer. You should pay attention only to the current ranking of cash loans , because only such will allow us to actually orientate in the offer and makes sense when comparing parameters. They are in particular:
- amount to be repaid,
- amount of installment.
In this statement, cash loans are ordered from the cheapest to the most expensive. After choosing a specific bank with satisfying parameters, we can enjoy a loan tailored to the needs and possibilities.
Cash loan and payday loan
On the Internet, you’ll find cash loan rankings, as well as payday loans rankings. Just compare the two statements to see that the bank in the form of a loan can lend us more, and we have more time to pay off more cash. Creditworthiness does not always make it possible to take advantage of the banking offer, as cash loans and procedures related to their granting are subject to the Banking Law, i.e. provisions not applicable to non-bank loans.