How to choose a payday loan? More and more people are looking for the perfect loan for their needs. Banks and credit institutions, precisely for this reason, move in the direction of users with specific needs to come to grips with. We propose five points that explain how to choose an ideal loan, among the wide range of present proposals.
Check the TAN and choose the best one.
When you ask yourself how to choose a loan, remember that the first thing to consider is the adoption of a loan based on the TAN: the TAN is the Annual Nominal Rate, the interest rate for the banks used to fix the amount of the installments to have to cover monthly. Obviously, the more the TAN is contained, the more convenient the loan installment is, essential for the return. Evaluating the cheapest TAN is therefore a fundamental step, but it is also necessary to compare the loans considering the ancillary costs, not included in the TAN. The reference rate, in this case, is referred to as the APR. So if you’re considering how to choose a loan, don’t forget TAN and APR.
Ancillary costs are often very important.
Usually, in the cost of the loan, financial and banks also include the so-called ancillary costs, not necessarily linked to the repayment of the loan obtained or the payment of interest. Instead, it is a list of expenses related to the services necessary for the management of the loan, such as preliminary expenses, installment management fees, closing costs and much more. To compare, therefore, the various proposals, it is necessary to consider the aforementioned APR, the Annual Effective Global Rate.
Insurance is not always mandatory.
To choose the cheapest loan it is necessary, in fact, to verify in the first instance, if there are insurance coverage to be signed at the signature. This serves to mitigate the risk of insolvency, but without doubt the financing costs can increase. So if you’re considering how to choose a loan, remember to evaluate the costs and benefits of these insurances.
By reporting a guarantor for the practice of your loan, you will be more likely to access it: the guarantor is the one who ensures coverage of the amount to be repaid, in the event of insolvency on the part of the user.
The longer the duration, the easier the loan will be to obtain.
Distributing the repayment of the loan over several years will ensure a more convenient installment and will make it possible to obtain the requested loan more easily.
Now you know how to choose a loan, in reality the world is much more complex but these 5 steps are a good starting point. Oh we forgot, when you ask yourself how to choose a loan there is only one answer that will never make you make a mistake: trying to elect, search and read and search and read again.