Comparison of cash loans – The newest banks | The latest loans
Comparison of cash loans in a bank is a quick search for loans and cash loans in banks. Check not only how much the estimated installment will be, but also where to go for such a loan.
Everyone who needs a cash loan wants it to be the cheapest cash loan. We are looking for such loans before holidays, before Christmas, for renovation of a flat and purchase of a car. We check and compare bank offers, ask friends and look for up-to-date information.
However, there is one rule that allows you to find a favorable loan: compare cash loans. This is the only way to find a cheap loan.
A cash loan or cash loan can be issued for any purpose. This money, especially for a relatively small amount, can be obtained quickly and without unnecessary formalities. You can choose a bank with a standard offer, as well as find a bank with loans over the internet or with a guarantee of the lowest interest rate or installment.
The cheapest cash loans – what to look for?
The vast majority of people who are looking for loans pay attention primarily to the nominal interest rate and installment amount. But neither the interest rate, nor the more the installment, indicate whether the cash loan is cheap or expensive.
Nominal interest rate refers only to interest costs and can be low. Especially when it is a small amount of cash loan with a short repayment period.
With the interest rate, the banks would not be able to save… They add additional fees, for example: commission, insurance or additional fees.
The insurance increases the cost of a cash loan. Answer the question of whether you need such insurance and whether you will be able to use it. It may provide protection, for example in the event of dismissal or illness, but it is necessary to analyze the costs of such protection!
The commission is a cost which is a fixed amount or calculated as a percentage of the loan amount.
All these fees together determine whether the loan will be cheap, expensive or very expensive.
When comparing loans, not only cash, pay attention primarily to the APRC, ie the Real Annual Interest Rate. This amount of APY is a proof of whether it is the cheapest cash loan or maybe one of the most expensive on the market…
Comparison of cash loans
Compare cash loans is a tool that does not allow you to search for the cheapest cash loan, but it allows you to estimate the installments.
Equal installments will not change throughout the loan repayment period. Decreasing installments at the beginning are larger, but with each subsequent installment are smaller – cash loans are cheaper.
Anyway, no calculator or comparison of cash loans is to choose the cheapest loan, only to present proposals of banks in the cash loan segment.
No comparable cash loans calculate the exact amount of loan installments, even the calculators on bank websites, only estimates them. The credit cost, and thus the amount of the installment depends on the INDIVIDUAL credit offer.
The cheapest cash loan APY
It has already been mentioned above that you should pay attention to APRC if we want a cheap loan. The actual Annual Interest Rate is currently the best indicator for comparing loan offers, not just for cash. The formula for its calculation is complicated, so there is no point in giving it, but it is worth knowing what factors affect its height.
The actual annual interest rate is such as:
- interest rate denominations,
- commission for granting a loan,
- insurance cost (if insurance was chosen),
- payment for processing the application,
- payment for additional services,
- the time value of money and the repayment period.
If we look at the components of the cost of cash loans, it is very common to note that at low nominal interest rates, the commission is set at a high level. Therefore, they should not mislead advertising with a nominal interest rate of 2.99%, only the offer of cash loans according to APRC should be compared.
What if we have several cash loans in different banks? Read about the fact that cheap consolidation loan in the same bank may be a beneficial solution. It is not worth taking a new cash loan to pay off your debts. Consolidation loans are slightly cheaper than loans and cash loans.