Cheapest cash loan 2019 – how to find it?
When making a decision to take a loan, we should be aware of our own financial situation and the commitment we are able to afford. When we determine our needs and financial possibilities, it may turn out that the cheapest cash loan will not be the best solution. Why? There is a relationship that the shorter the loan period you choose, the lower the cost you will incur. However, the number of installments should be adjusted not to the cost of the commitment, but to the possibilities. If the calculations carried out on the basis of the household budget show that we are able to allocate PLN 600 per month for repayment, it is not worth risking and applying for financial support, which requires a higher installment. Why?
The cheapest cash loan 2019
When we decide on a higher installment than the budget foresees, we focus on the financial liquidity of the household and good credit history. When taking such a risk, you should be aware of any repayment problems.
In what bank the loan?
Cash loan for any purpose is one of the most popular products offered by banks. According to the latest annual report of BIK “Kredyt Trendy”, the number of borrowers using this source of financing increases every year. In December 2016 installment and cash loans contracted 8,012 thousand. people. At the end of 2018, there were already 8,188,000 No wonder that these are products that we will find in every bank with an offer for individual customers. Before making the final decision on the application, we should review the available proposals. The competition is high, and hence, lenders encourage customers with numerous promotions, rebates or attractive interest rates.
The answer to which bank you will find a loan in your household budget. Much also depends on individual preferences. Some will choose the product with the best promotion, others will focus on standard offers that meet their needs.
Where is the best place to take a loan?
When we get the most important information about financial needs and possibilities, the question arises where it is best to take a loan. If we are counting on submitting the application without unnecessary formalities, it will certainly be worth leaning towards the offer of the bank in which we have a personal account. It does not guarantee that it will be the cheapest cash loan. However, there is such a chance. Banks often offer attractive promotions to retain customers.
It is worth noting that new customers also have a chance at promotional offers. An example would be a -50% rebate on a commission at mBank.
It happens that before submitting a question about the conditions, the creditor encourages to take advantage of the offer tailored to the individual situation of the person concerned. On the basis of regular remuneration transfers and outgoing orders, they have the opportunity to pre-assess creditworthiness and then tailor the offer to the client. People who have a given bank can also count on a reduced interest rate or lower commission. However, that’s not all!
Cash loan and creditworthiness
Banks inform their clients that in order to have a chance for a loan, a positive assessment of creditworthiness must be obtained. On this basis, the creditor determines whether or not the applicant can cope with the commitment. The whole process is divided into two stages: qualitative and quantitative analysis. The first one includes credit history as well as information on the client’s detailed financial position. We will be asked about the number of dependents, seniority, position etc. Then the bank will check the data about us in the registers, including the Credit Information Bureau and the Economic Information Bureau.
The second stage, quantitative analysis, is based on numbers. This means that the lender will take into account the amount of income and its source, the cost of living and active liabilities to other institutions. The amount of remuneration should be confirmed by relevant documents. If you are wondering where to take a loan and limiting the formalities to a minimum is an important criterion, it is worth making an application at the bank where you have an account. In this way, we will eliminate the need to provide a certificate from the workplace or fill out additional statements. The replacement will be the transaction history for the last few months.
Where’s the cheapest loan? How to find?
As we have already mentioned, before making a decision about using a specific offer, it is worth getting acquainted with all those available on the market. In this way, we have the chance to choose the cheapest loan. However, checking the website of each bank takes time. If you don’t want to lose it, it’s worth using financial service comparison websites. They offer access to a wide range of products, including cash loans. To choose the best proposal, just go to one website.
After selecting the product category, specify the parameters we are interested in using the virtual calculator. The loan amount should meet the needs, while the loan period must be adapted to our capabilities. Then the system will generate a list of banks that have the cash loan we are interested in on offer. At this stage, we receive information about the monthly installment and the total cost of repayment. In this way, we can evaluate the proposals and choose the cheapest loan. However, it is worth verifying your decision by checking the rankings, as well as the opinions of experts and customers. In addition, it is necessary to check the conditions set for customers. Let us remember that the lowest costs do not guarantee that this is the best offer.
If you are planning a renovation of a residential premises or the purchase of a new house or flat, you might want to look at mortgage loans. This is intentional financial support that allows you to make your dreams of your own four angles come true. However, before submitting your application, you should read the detailed information on each offer. First, let’s pay attention to the cost and the own contribution required. The fees include:
- the interest rate usually consists of the WIBOR rate and the bank’s margin,
- a fee for verifying that the money was used for the right purpose,
- sometimes a fee for the appraiser’s report,
- and additional costs, such as: early repayment of the loan, the possibility of taking credit holidays or possible calls to meet the obligations.
Secondly, you should check the requirements your lender sets for you. In this way, unnecessary submission can be avoided. It is worth remembering that negative credit decisions can cause a decrease in creditworthiness and difficulties in obtaining the necessary financial support. Therefore, in the case of both mortgage and cash loans, it is recommended to first analyze the offers and the current financial situation.