Banks are fighting for clients by offering more interesting loan offers. We usually deal with this type of advertising during increased shopping periods, especially before Christmas. How to find the most favorable for us among so many offers. The case is not so simple when comparing many loan offers requires not only time, but also at least basic knowledge of finance. On the Internet you can find a lot of tools that will help us, such as a loan calculator, but we do need some basic knowledge about loans. It’s all for the good of our finances, because we will pay back the loan. In this article we will try to introduce you to the basic issues related to credit. After reading this article, you’ll know how to choose the best offer.
Credit – characteristics
What characterizes a loan? First of all, that only a bank can give it. Banks operate in accordance with the provisions of the Banking Act. In addition, the Polish Financial Supervision Authority also keeps banks’ credit policy in check. From time to time, it issues recommendations that banks must comply with. Hence, banks have to set high standards for their potential borrowers. In the case of a cash loan, the potential borrower must demonstrate earnings at an appropriate level and good credit history at BIK. People who previously had problems with timely repayment of loans and borrowings are unlikely to have another loan. Currently, you do not have to go to the bank in person to apply for a loan. Just go to his website and complete the application. The application should include personal data, information on employment and the amount of earnings, as well as specify the number of dependents we have. On this basis, and on the analysis of the BIK, BIG and KRD databases, the bank will assess our creditworthiness. If the decision is positive, the money can go to our account the same day. We will repay the loan in monthly installments
Of course, these are the requirements to be met in the case of cash loans, by far the least complex of all loan offers. The requirements for a mortgage will be completely different. Here, the bank may require a significant own contribution. Therefore, this type of loan is available to people with a wealthier portfolio. It should also be remembered that the money from the loan should be allocated to a specific purpose. If we use a mortgage, we can allocate the funds only to the purchase or construction of the house. We cannot spend them on consumption.
Best loan offers
What are the best loan offers on the market? First of all, the cheapest are the most attractive. To assess the cost of credit, we should look at the APRC, i.e. the Actual Annual Interest Rate. It is given in percentage and reflects the relationship between the cost of the loan and its sum. The APRC calculation method is strictly regulated by the Consumer Credit Act. Therefore, banks calculate this parameter according to a uniform method. This gives us a great tool to compare credit offers. The APRC has it that it takes into account not only nominal interest rates, but also a commission and preparation fee. In a word, it takes into account all costs that are associated with taking out a loan.
You can also use the loan calculator to compare loan offers. You will find lots of websites with loan calculators on the internet. It is important that such a calculator provides a clear and understandable instruction manual. So that we can enter the data correctly. Because entering them incorrectly can significantly distort the calculator result. We usually enter the amount we want to borrow, the repayment period and interest rate. The calculator will perform credit simulations, thanks to which we will get demonstrative results on what our loan may look like. We must remember that these data may differ from the real bank offer.
Cancellation of credit
Loan offers usually look very tempting. Often, the decision to take a loan is too hasty, often on impulse. Sometimes, after signing the contract, we come to the conclusion that we made a mistake. How to get out of such a situation? Can I cancel a loan agreement? The answer to this question is yes. You just have to take care of several formalities. First of all, you have to be on time. You have 14 days from the date of signing the loan agreement to resign from the loan. This results directly from the provisions of the Consumer Credit Act. Cancellation of a loan must be in writing. Of course, you must repay the entire loan amount. In turn, you have 30 days from the date of submitting the letter of resignation.