For many of us, consumer credit is a real opportunity to quickly solve your problems or make your life more comfortable and convenient. However, the lack of the required amount is no reason to make money in a high and sometimes very high percentage.
Despite the variety of offers from different banks, it is not always possible to find an offer from which you can take out a low-interest consumer loan. There is away! Specifically, there are several secrets on how to choose the right bank and which one makes the most sense to contact.
What is the interest rate
When a customer contacts a bank for a specific purpose – to get a consumer loan in cash with a low-interest rate, he compares his material possibilities and examines offers. To a certain extent, the customer himself, his reputation and much more can influence the size of the interest, but it basically consists of many other factors:
- Inflation rate;
- the cost of managing public deposits;
- the economic situation in the country;
- the cost of maintaining the bank’s office and its employees.
All of these factors are in no way; the customer cannot influence them in any way. However, there are a number of circumstances under which you can get consumer credit on more favorable terms.
How to lower the interest rate on the loan
Obtaining a low consumer interest rate in the bank can give a customer ideal credit history. That is, at the time a money loan is issued, the customer must have the loan closed immediately. A lack of creditworthiness cannot influence the rate cut.
One of the effective ways to lower the rate of credit is to participate in a payroll project. No income certificates and guarantors are required. That means Good Credit consumer loans with low-interest rates are available to customers who receive their earnings on a plastic card from this organization and may not submit additional documents when applying for a loan.
The last option is to issue a loan with collateral, that is, leave a deposit or win a surety. In this case, the bank minimizes the risk of non-repayment of the money and reduces the interest rate on the loan. In the event of the client becoming insolvent, he collects the claim from the guarantor or sells the assets left as security.
What to look out for
Of course, today the customer is looking for the lowest interest rates for consumer loans in various banks on the Internet and comparing the offers. As a rule, bank advertisements only attract the attention of a potential customer and promise a lot of money “almost for nothing”.
In the following, each ad is described in the small print on What conditions and which group of people can receive a low-interest loan? This suggests that not every customer can get a low-interest rate on the loan, but they can apply for and approve the loan, but the amount of the compensation differs significantly from that shown in the ad.
And the last trick of the banks is an online application without visiting the office. That is, the customer fills out a questionnaire on the organization’s website and is approved in advance. But after that, he definitely has to bring documents to the office where the loan terms may be slightly different.
How to choose a bank
Now you need to determine how to choose a low-interest consumer credit. There are many branches of different banks in each city, and each of them has bright and attractive advertising. However, you don’t need to take a passport and walk to the first available office. It makes more sense to use the internet and compare all offers online.
The search will take some time because it is not only necessary to go through many offers, but also to read the terms carefully. In some banks, insurance is mandatory for the customer, and this is at least one percent of the loan amount. In other banks, favorable conditions only apply to borrowers who apply again.
In general, it is better to deal with each bank separately, calculate their options and use the loan calculator. It often happens that a loan with a higher interest rate is ultimately more profitable for the borrower.
Now it is worth checking the rating of the most popular banks and the credit terms they contain, comparing the terms and determining which banks are the most advantageous and for what reasons.