Applying for a loan is a relatively simple process with potentially significant benefits. At best, comparing loans can save you thousands of dollars. However, it is not advisable to wade through the supply of the loan market just for individual and larger purchases, but to regularly tend for loans.
It is easier than ever to apply for loans.
During the pre-internet period, you had to visit several banks individually to request a loan quote. Nowadays, the internet is full of various loan comparison services that make up a customized offering for the loan market. By using the loan comparison service, you save both time and money. You do not need to physically move anywhere on your home sofa to get loan offers and can easily select the most suitable and affordable loan for you.
A loan comparison begins when you complete a few basic information about the loan comparison service, such as your information, the amount of loan you need, and the loan repayment period. When getting a summary of your loan offers, it is important that you carry out a thorough analysis process. Make an honest assessment of your own ability to pay and choose a loan that will suit you in terms of monthly installments, interest rates and repayment terms. Remember that a long taxi payment period will always increase the total cost of the loan.
When should loans be tendered?
Large individual purchases
It is always a good idea to bid for loans if you need additional financing for a specific purpose from outside. Usually loan money is used to arrange a wedding, get a car or boat, renovate a home or go on a family vacation.
If you have more than one loan that you pay at the same time, you may want to bid for the loans. You can combine several loans, such as a wedding loan, a car loan, and a single consumer loan into one loan. The idea behind a compound loan is to find a loan that is cheaper in total cost than having to pay off several different loans at the same time and pay off all your previous loans at once.
When paying on several loans at the same time, you should also remember the maturity dates of all loans with monthly installments. If you forget the due date, you will be reminded with a note payment and the total loan amount will increase again. There are also practical benefits to a compound loan, as you only pay the loan by one due date and monthly installment.
It is a good idea to bid regularly for loans as you can always find a new loan on better terms. Even if your financial situation improves, you can apply for a lower margin loan with a shorter payback period and pay off your loan at once. A shorter payback period on your new loan will increase your monthly installments, but will save you the overall cost of the loan. You will also get a cheaper and faster loan repayment. The same applies if you get a co-applicant for your loan, for example, a partner for a boat purchase. If the loan has already been withdrawn, it is worthwhile competing again, because with the power of two people, the loan can be paid off faster and can be done on better terms.
The new interest rate cap will increase the attractiveness of composite loans
On the first day of September, the law limiting interest rates on loans came into force . The new law stipulates that interest rates on consumer loans must not be 20% higher and the total cost of loans must not exceed USD 150 per year. The legal reform will significantly simplify loan comparisons as the consumer is more aware of the factors affecting the total cost of a loan.
The new interest rate cap that came into effect in September applies only to loans raised after September 1, 2019. However, you may benefit from a new interest rate cap even if you have raised your loans before the legal reform comes into effect. Combined loans are ordinary loans, so the interest rate cap applies to compound loans in the same way as all other loans. Even in the case of compound loans, the interest rate is also limited to 20% and the annual cost of the loan may not exceed USD 150. That is, you are likely to make significant savings by combining your pre-reform loans. When combining loans, it is a good idea to remember that you should not raise your loan any more and your previous loans should be repaid at once. Otherwise, a compound loan is of no use.
Our goal is always to communicate the terms and amounts of the loans as clearly and clearly as possible. That is why we are also thinking of a new law reform that limits interest rates on consumer credit.