I need a personal loan. What should I bear in mind?
Buying a car, a dental treatment, a home renovation or paying unexpected expenditures are some of the situations that may require taking out a personal loan. We may sometimes find ourselves in an emergency and immediately think of a personal loan, but we must never forget to:
- Compare several options
The APR or Annual Percentage Rate shows the bank’s price for lending the money. It also includes the expenses and fees, and it’s a good way to quickly compare between several options.
- Bear in mind every related cost
A favourable interest rate may sometimes entail other fees being charged, taking out an insurance or service or other guarantees. Work out the total amount you will be paying so that you can have a general overview of the most affordable option.
- How much will I pay every month?
The longer the loan term, the more interest you will be paying, although the instalment you’ll pay each month will be lower, and vice versa. Work out how much you’ll pay every month in order to select the option that best suits your needs. Remember that, if instalments are unpaid or payment is delayed, the credit institution may charge higher interest than the regular one, as well as an outstanding payments fee.
- How much money do I need?
The more money you request, the higher will the instalment and the total interest be. Adjust the requested amount to your actual needs and you’ll avoid a higher cost.
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