2023-06-13 09:09:47
13.06.2023 – 08:09h Updated 06.13.2023 – 08:09h
Do you need to take out a personal loan, but don’t know where to start? Interest, commissions or repayment terms are some of the aspects to assess when contracting this type of financing. The goal is to get the best conditions that fit the needs of each client. And look for the maximum savings and comfort in the return of the money.
Precisely, one of the advantages of this type of financial product is that it can be used as a means of financing when buying a house and, in fact, there are methods that allow you to save money with a personal loan instead of a mortgage.
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6 aspects to take into account when choosing a personal loan
To choose a personal loan, there are several aspects that must be taken into account, although the most relevant can be summarized in the following: repayment termsas well as the amount of money fixed to pay in installments.
Although there are also others that should not be overlooked, such as associated commissions, amortization terms and characteristics and conditions of the product. Because there are personal loans of all kinds. From the largest to finance large-scale projects, to the smallest, such as quick loans to cover unforeseen events or small debts.
If you need to contract a personal loan, below you can consult some of the keys and fundamental factors to take into account to make the best choice.
interest rates
One of the first aspects to take into account when choosing a personal loan is the interest rate. Specifically, there are two concepts that must be studied and they are the APR and the TIN.
- The APR or equivalent annual rate refers to the total cost of the loan after applying the expenses related to interest and commissions that the customer has to pay. Therefore, it is the key factor when choosing the best personal loan and that it does not go much in price.
The difference between the amount of money you request and the total amount of the APR is the amount of interest, expenses and commissions that each entity charges for contracting the loan. And it is the aspect to analyze in detail so as not to have to return an exorbitant amount to the entity.
- For its part, the TIN is the money paid for the money borrowed. In both cases, the ideal is for this percentage to be as low and adjusted as possible so that the client does not have to return excessive amounts to the entity that lends them the money.
repayment terms
Another factor to assess are the repayment terms associated with each product and find the balance between mortgage contracting time and installment to pay each month. In general, products contracted for fewer years have a higher share. Reason why before contracting it you have to do the math and check if you will be able to pay this fee on a regular basis.
On the other hand, in the case of loans contracted for a longer term, they have a much more comfortable fee to pay. The disadvantage is that the client usually pays more interest than in the shorter terms.
For all this, the The best option is to choose a personal loan that has an intermediate term. In this way, there is no risk of assuming a monthly fee that is too high, or paying exorbitant interest in the long term.
Associated commissions
Before contracting a personal loan, you must assess the commissions associated with that product to reduce expenses as much as possible. Above all, you have to pay special attention to specific opening or early cancellation.
In this way, by saving the expenses for contracting the product or for wanting to amortize it early if the client can afford it, they allow greater flexibility in payment and reduce the expense items associated with contracting.
specialized loans
The entities offer specialized personal loans that are aimed at covering certain purposes. In other words, before looking for a generic product, it is recommended that you find out if there are personal loans to buy a motorcycle, to start a business or to study, because in these cases the different entities offer different conditions and specific products that may be more advantageous than generics.
Speed in contracting
In the event of an emergency or unforeseen event, speed is essential. Therefore, contracting a personal loan in an entity that can manage the contracting of the product of quickly and in a short time is one of the aspects to take into account.
In the case of not being in a hurry, that the entity can resolve the procedures quickly and that the personal loan application does not take too long in time is also an added value that the client ends up thanking.
compare offers
Finally, once the different aspects that must be evaluated to choose the best personal loan have been clarified, all that remains is to compare offers. To hire the product that best suits the needs of each client and best conditions can offer in each case.
It is one of the most tedious steps when contracting the loan, but it is the only way to ensure that you contract the best product of all those available on the market.
If you want to read more news like How to choose the best personal loanwe recommend that you enter the category of Loans and Credits.
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