How Do You Choose the Right Cash Loan Offer?Uncategorized
You need extra money. For renovation, washing machine, departure – is it important? You have sent the application, you are waiting for a phone call from a bank adviser because you want to take a cash loan. What will you choose The bank who will call back first? A bank that tempts you with a lower interest rate, or a bank that doesn’t require a heap of documents? What to ask, how to check the offer and how to choose the best cash loan? Advise!
Get ready to talk to a bank employee. The consultant will ask you at least a dozen questions – the answers will allow you to verify your creditworthiness.
Interview with a consultant – what will he ask about and what to ask?
Depending on how you receive income, you may hear the question about:
• Source of obtaining income. You will need company details – address, tax identification number, REGON number, telephone number – yours or the one where you work. Remember that not all banks allow consultants to check this data themselves in CEIDG, so just in case have a business card with you. This will definitely speed up the process.
• Data from the ID card. All you need to know is the date of issue and expiry, series and ID number, because the document will be verified later.
• Income – your declaration is usually enough.
• Your monthly expenses. Depending on the bank, you may only be asked about your expenses or household expenses.
• No arrears with ZUS, US or other institutions – if you run a business.
• Commitments. Some banks will ask about the date of conclusion and repayment of the housing loan.
• Consent to data processing for marketing purposes. This consent cannot be required – so if you do not want to receive marketing correspondence, you can refuse.
• Consent to verification in BIK. In most banks, the verification will be carried out already during the conversation.
• Consent to verification in BIG databases.
The conversation with the consultant lasts a long time, so when sending a notification, you have several dozen minutes to spare, which you will be able to devote to him. Thanks to the answers to your questions you will know the initial credit decision. You will find out what cash loan you can count on and what the path to grant it will look like.
Don’t forget to ask about
• Total cost of the loan. Do not just suggest interest rates. Why? About it below.
• Insurance. In some banks it is required, in some… sold out. Ask for the installment amount with and without insurance and be sure to ask about the conditions before you decide on them.
• Possibility and possible cost of early repayment of the loan (the bank should not charge for it).
• Process and required documents. If the consultant directs you to a bank branch, ask about the documents you should take with you. It may turn out that you will need an account statement for 6 months (additionally confirmed by a bank stamp) – and you do not want to log into electronic banking on your consultant’s computer?
• You can take advantage of the cash loan promotion. It may happen that you hear the terms of the standard offer and you saw the promotional interest rate compared. Ask if and under what conditions you can lower the interest rate on your cash loan and ask for this specific promotional offer of the bank.
Cash loans – why check the APRC?
When choosing a cash loan, pay attention to the APRC, which includes all additional fees, including commission, preparation fee and insurance. It may turn out that the loan with an interest rate of 0 percent. it will have 12% APRC – these are the additional costs that we often don’t even pay attention to. To calculate the total cost of a cash loan, you can use the free APRC calculator tool.
Always ask for the total amount to be repaid
you will find out how much your cash loan will actually cost you. The most important rule you should follow is: The lower the APRC, the better the loan. How to lower the interest rate on cash loans?
The advantage of buying insurance through a bank is that it will take care of all formalities, and may also affect the amount of commission or interest rate. However, before you get persuaded, compare the total cost of the loan with and without insurance – check which version will be better. Take into account that insurance is an added value, not just a cost.
Also check whether the bank will lower the loan interest rate if you decide to set up a personal account there. If such a bill is free, then take this into account, but if your bank charges you for keeping your account, then calculate how much you will pay extra for it throughout the entire repayment period.