Foreseeing all types of incidents is almost impossible, and often, even if you have a savings fund, there are often unforeseen events that are reflected in your finances. You may need to apply for a personal loan or some other type of consumer best loan. Here we leave what you should consider before requesting it.
What are you looking for the best loan?
Before choosing the loan with the financial institution or bank indicated, you should ask yourself what kind of loan you should request. If the goal is to buy a new car or pay for a vacation, this type of question is essential because the interest, the amount of money you can request and the payment term can vary greatly depending on the purpose of the loan. Ask yourself how necessary it is to apply for the loan if you really can not with the financial burden you currently have.
Compare the market
For obvious reasons, you should know all the options you have and are offered in the market so that you do not end up with the first option offered. You can go directly to banks or consult online where you will find a lot of information about personal loans or long term loans in UK, for example. This type of alternative financing, without banks, has usually more flexible and convenient conditions for all parties, so we recommend that you consider it seriously.
It is advisable to first attend the financial institution with which you have already contracted other services. Being an existing customer, they tend to be more accessible and flexible when applying for a loan. Sometimes, when you choose an entity with which you have no previous relationship, you are obliged to contract additional services and products with the loan, which are added to the payment installments.
What should you check at each institution you attend?
- All loan contracts have different fees. Do not overlook them! These are the different types of commissions you can find:
- Commission for early cancellation: it is charged in case of canceling the loan before fulfilling all the payments. A percentage of the amount that remains to be paid is taken as a reference.
- Opening Commission: the payment is made when the operation is finalized or the contract is signed and generally goes on the amount that is lent.
- Commission for the change of conditions: it is paid when changes are made to what was stipulated at the beginning of the loan contract.
- Commission study: payment for studying the feasibility of granting the loan.
It is what you will pay at the end for the loan. You should always choose the one that has the lowest interest and that stays stable throughout the loan payment. If it is variable, worry about knowing the adjustment parameters. Generally, fixed rates are for short-term loans and variable rates are applied to long-term loans.
In the contract, everything that has been agreed with the entity must be explicit before signing. Take the time to carefully read all the clauses and pay special attention to the late payment interest in case you can’t pay the loan on time.