26 May ADVICE AT THE TIME OF REQUESTING A LOAN
When it comes to requesting money, the important thing is to know how much you need, how much time you need to amortize it and if you are able to return it . From here we can take the next step, which is to know the market: to whom to apply for a loan .
What to look for in order to compare
There are five key aspects to choosing the most suitable loan for us: interest rate, APR, fee, term and commissions . Perhaps the most important is the interest rate, the price they charge us for leaving that capital, but it is not a comparable data. There is an interesting video by Gonzalo Bernardos that explains the nominal interest rate versus the effective rate (APR or annual equivalent rate). Is this: What is the APR?
The interest may not change too much from one entity to another, so the data to monitor is the APR that we are given for a loan of a certain amount, term and installments, in annual terms and with the commissions already included.
The next point to control is the monthly installments . This is very important because they tell us if we can or can not make the commitment within the estimated timeframe. With fixed-rate products, the fees do not vary during the life of the loan and allow a hair-by-hair comparison of two or more options, which is always easier than looking at the interest rates, the APR and the commissions.
This previous calculation of the quotas allows us to evaluate if reducing the term we can save. The shorter the term, the lower the interest we will pay. However, sometimes it is convenient to pay more months, but reach the most comfortable fees.
There is the option to change the conditions of the loan once we have already begun to pay, but another series of commissions that can destroy the advance amortization of the capital enter.
Main commissions of a loan
Three types of fees are mainly applied :
The study , which are those made by the entity to decide the viability of the operation (they represent a percentage of the total amount).
The opening ones , which include the services for the formalization of the contract (they also represent a percentage of the total).
And the commissions for cancellation or early amortization , that the consumers do not know and that can give more dislikes. They are the ones that charge us for advancing money or canceling the loan ahead of time. They vary from the first year, but they are penalties. In long loans it is convenient to know them before signing.
Before deciding, compare the nominal interest rates and, if you are clear about the amount and terms, the APR and the quotas that result.
Try to avoid additional guarantees (guarantees that involve another person) and related products.
Read carefully what you sign and ask what you do not understand. Put yourself in the worst and value if you can afford the operation. Do not hire if you are not sure you can return it.