For many Poles, the choice is simple: they take a loan in a bank, where they have a personal account. This significantly shortens the credit procedure, because the bank knows our finances perfectly. On the other hand, “our bank” does not always have the best offer. Sometimes it is worth looking for a loan from the competition.
1. Let’s only look at the APRC
Presenting their offers, Banks are tempting in many ways: 0% interest rate, no commission or the lowest installment guarantee. Let’s not be fooled, however. The only element that should interest us in the offer is the APRC, which is the current annual interest rate.
The lower the APRC, the more favorable the loan and the lower the installment. The APRC covers all credit costs: interest, commissions, preparation fees or insurance. The best banks currently offer APRC below 10%. We can easily find large banks, which the APRC significantly exceeds 20%.
2. Via the Internet or in the branch?
Some banks offer their loans entirely via the Internet. This is a great convenience, because we will receive money without leaving home and without visiting a bank branch. Online loans include, among others, Allwe Bank (up to $ 150,000) or T-Mobile Banking Services.
On the other hand, some banks use a marketing ploy: they call their product a loan over the Internet, and in fact the customer must visit the branch. This is a wrong strategy that can irritate the person looking for an online product.
3. Additional insurance? No thanks
Insurance for credit is expensive and significantly increases the installment amount. If someone is very interested in insurance against loss of job or illness – it is worth using a separate offer of the insurance company. The bank will come out more expensive. Unfortunately, for larger loans, insurance is compulsory.
4. Let’s use calculators
Several banks provide loan calculators. After entering the loan amount and repayment period, the calculator automatically shows us the amount of the monthly installment. It’s a great way to quickly compare offers and choose the cheapest loan. Cash loan calculators can be found at Allwe Bank, uBank or SG UniSavers Bank.
5. Without opening an account
Some banks, along with the loan, force the customer to open an account. Therefore, before signing the contract it is worth explaining it with a bank employee.
6. Installment adapted to our capabilities
Let us remember that life brings constant changes that also affect our finances. Let’s take an installment that we will be able to pay back not only on the day the contract is signed, but also in the event of a deterioration in our finances.
7. Check before you sign
Before signing the contract, check that everything is correct: loan amount, repayment period, total repayment amount, installment amount and APRC. If in doubt, explain it to your bank.
8. Something went wrong?
Hastily you took a loan or found a better offer? It’s not a problem. Within 14 days of signing the contract, you can withdraw from the loan contract without giving any reason. This is guaranteed by the Consumer Credit Act. Withdrawal from the contract means that it is treated as not concluded.