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Tips To Evaluate A Personal Loan

With the last quarter of the year, you have come to schedule vacations or make some improvement in the house that can be enjoyed, for example, during the summer. Facing it 100% in cash is not in the possibility of many, even if it comes saving for such purposes.

 

The plans of installments without interest with a credit card are an excellent alternative for the items or businesses that still maintain this benefit. The other possibility is to obtain a personal loan that allows us to pay in cash the good or service that we are going to contract, often obtaining a better price than if it were financed.

 

Tips not to fall into any trap and know what is being hired

1) Personal loans do not carry any real guarantee (as it happens with mortgages or with pledge). The awarding depends only on the credit assessment made by the customer’s bank.

 

2) Before signing, look at comparing rates and conditions of two or three entities, the key data is the CFT, the total financial cost. Although the advertised interest rate is lower in bank “A” than in bank “B”, in the final account it may end up being more expensive. The CFT includes commissions, expenses, insurance if applicable, etc. On average, it is around 45% per year. The cost is high, but it is lower than that is charged by credit cards for refinancing the monthly balance.

 

3) In general, the bank where our salary is credited offers more advantageous conditions. There are also promotions and bonuses if you contract directly through the bank’s website. The rate can go down a few percentage points.

 

4) What type of credit to choose? There are currently fixed rate loans in pesos and loans adjusted by UVAs. In the first case, during the agreed period, which can be up to 5 years, the same monthly fee will always be paid. In the second, that of the UVA credits -which at the moment only the Banco Ciudad and the Banco Provincia are available- the fixed interest rate is much lower (between 8% and 12%), but the capital will be adjusted by the Unit of Purchase Value (UVA), a coefficient that began to be used for mortgages and that reflects the variation of the price index, that is, inflation.

 

5) Fixed-rate loans have higher monthly payments (an average of $ 3,500 per month for a loan of $ 100,000 for five years). UVA credits have much lower quotas, but they are not fixed. For these cases, the fee of $ 100,000 is around $ 2000 / $ 2,500 per month.

 

6) The fee, in general, cannot exceed 30% of the salary of the family group. They allow adding income in most banks. The lower the fee, the greater the total amount that can be requested.

 

7) The early cancellation of a loan has a cost according to the time that has elapsed since it was granted.


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