$100,000 is quite a big amount in American realities. If we are forced by various life situations to spend such an amount, we will most often have to use a cash loan taken in one of the many commercial banks operating on the American market. However, we must take into account the fact that obtaining such a loan will not be easy if we do not show enough income because the monthly installment in the case of a loan of USD 100 thousand will be quite high. Let’s see what the banks can offer us in case of a loan offer of 100 thousand USD.
How much does a 100,000 loan cost and why so much?
A credit amounting to 100 thousand USD will not be cheap. It would be like that if we decided to repay it within 12 months. However, the installment would be so high that hardly anyone would decide on such a solution. In our calculations, let us assume a more realistic version of the loan repayment within 5 years, i.e. in 60 monthly installments.
In the promotional offer of one of the banks we will repay 119 000 USD in such a loan. The offer is quite advantageous because the bank gave up charging commissions and set the loan interest rate at a level similar to 7%. The installment in this case is almost USD 2,000. In the case of similar loans with commission we will pay in general about 20 – 30000USD more than we borrowed. This amount consists of the interest rate, i.e. the bank’s margin, WIBOR and commission for granting the loan. Sometimes the insurance may still be added, but we do not take it into account in the calculations because it is optional.
We should also remember that according to the law we can withdraw from a cash loan agreement within 14 days and we do not have to give any reason for our decision. We must do this by sending a letter to the bank and within 30 days returning the entire amount of credit.
Helpful Credit Comparison Engine
Although the differences between the banks will not be too great when debt is incurred for such a period of time in the amount of 100000USD, it is still worth using a credit comparison engine to choose the cheapest option. You will learn from it that the loan installment will not differ in any way, but by repaying the loan in 5 years you can save several thousand USD. Or maybe we will be lucky and find a promotional offer for new customers, thanks to which we will pay noticeably less. In order to find such a price engine, just enter “credit price engine” or “credit calculator” in the search engine.
What are the types of bank loans?
Cash loans for individuals can be roughly divided into two main types: housing and consumer loans. Mortgage loans constitute the vast majority of housing loans. As far as cash loans (consumer loans) are concerned, here the range is slightly larger and we can distinguish, for example, car loans or student loans. Individual loans may differ slightly in terms of costs and granting conditions.
Why is it worth paying off your loans on time?
It is very important to pay off all credit commitments within the agreed deadlines. In the 1990s, an institution called the Credit Information Bureau (the office) was established. It was established by banks to collect and share data on borrowers. The database contains information about which credits we have taken in the past and whether we repaid them on time. If there is a record of delays in the repayment of any credit in the database, then in the future we will have problems with receiving another loan. Therefore, it is very important to take care of a positive history in the office. Especially if in the future we are planning to buy an apartment using a mortgage. In this case, we can be 100% sure that the bank has thoroughly reviewed our credit history before making a decision.
Online credit
Thanks to the development of the Internet there is no problem to get a cash loan, even for such a large amount of money completely online. All we need is a computer with Internet access. All formalities will be dealt with using a web browser. It will not be necessary to send scanned documents. All data must be entered in the form. Then we will probably have to confirm our identity by sending 1 gr from the bank account registered on our details. After the acceptance of the agreement and regulations, credit funds will be disbursed and a paper copy of the agreement will be delivered to us by post or courier. This is a significant facilitation that speeds up the whole process of granting credit and makes it more accessible to a larger number of customers.
Credit 100 thousand
