We think that it is advisable to take a loan in two cases. First, if life and health (one’s own or one’s loved ones) depends on it. For example, an urgent need for expensive treatment.
Secondly, for any global purchase, such as an apartment. But only in the event that the market has this position and the purchase is not spontaneous, but planned for a long time. In other cases, you can either wait and save, or you can temper your wishlist.
Consumer credit, good or bad, has long been an integral part of the lives of millions of people. Unfortunately, many borrowers still do not know the rights and obligations that appear when concluding a loan agreement.
But credit is not only rights and obligations. It is important to carefully choose a loan, to be able to compare it with other products, to find the pros and cons. The borrower must be able to correctly assess their financial burden, not to assume more obligations than they are able to fulfill.
You can advise you friends not to apply for a loan unless necessary. And if you still have to borrow inevitably, approach this wisely and follow a number of rules.
Decide what part of the income you can give to the bank. It is desirable that it does not exceed 30-40% of monthly income after all necessary payments. If you have dependent children and other relatives, do not forget to take into account the expenses for them. Having calculated the payment acceptable to you, determine how much and for how long you can receive. The larger the amount requested, the longer the loan period will be.
When choosing a loan, find out what conditions are offered by a payroll bank or a bank with which you already had relations. Usually for «their» clients, loan organizations offer more favorable percents. If this option does not fit, pay attention to the offers of other banks.
In many online banking sites it is most convenient to find a profitable loan. It is enough to specify the necessary parameters (amount, term, collateral, etc.), and our search will select the appropriate products. Pay attention not only to the percent, but also to related expenses (insurance, fees for lowering rates, etc.). As a result, you will receive a list of credits that can be sorted by the size of the bet. Each product is written «expertise»: its advantages and disadvantages. Banks Selection also operates at many online banking sites. It is a personal loan selection service that helps customers select the necessary banking products with a high probability of approval.
Focus on the average percent on unsecured loans. Now it is around 20%, but it is quite possible to find banks that lend you at 14-15%.
Try to avoid banks that offer lower interest rates when certain conditions are met. Often, for this service, the bank takes a large commission. Typically, such programs initially set a high percent, and then it decreases with timely repayment of the loan. If you make even a slight delay, the bet will return to its original value. The commission, by the way, will not be returned. Just as with early repayment. When dreaming of a percent reduction in the future, do not forget that the highest percent is valid at the beginning, when percent is calculated on the full amount of the debt.