Banks fight for customers by offering more and more interesting credit offers. This type of advertising is most often used during the increased shopping periods, especially before Christmas. How to find the most advantageous among so many offers for us. The matter is not so simple, when comparing many credit 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 make it easier for us, such as a credit calculator, but we must have some basic knowledge about credits, however. This is all for the good of our finances, because we are the ones who will pay off the credit. In this article we will try to introduce you to the basic issues related to credit. After reading this article you will know how to choose the best offer.
Credit – characteristics
What are the characteristics of credit? First of all, it can only be granted by a bank. Banks operate in accordance with the provisions of the Banking Law Act. In addition, the credit policy of banks is also kept in check by the Polish Financial Supervision Authority. From time to time it issues recommendations which banks are obliged to follow. That is why banks have to make high demands on their potential borrowers. In the case of a cash loan, the potential borrower must demonstrate an adequate level of earnings and a good credit history with the authorities. People who have previously had problems with timely repayment of loans and credits are unlikely to have a chance of another loan. Nowadays, in order to apply for a loan, you do not need to go to a bank in person. All you have to do is go to his website and fill in the application form. The application must include personal data, information on employment and wages, as well as the number of people we depend on. On this basis, and on the basis of the analysis of databases, the office, the application and the National Court Register, the bank will assess our creditworthiness. If the decision is positive, the money may be credited to our account on the same day. The loan will be repaid in monthly installments.
Of course, these are the requirements to be met in the case of cash loans, which are by far the least complicated of all credit offers. The requirements for mortgage loans will be completely different. Here, the bank may require a large amount of own contribution. Therefore, this type of credit is available for people with a more affluent portfolio. It should also be remembered that the money from the loan should be allocated for a specific purpose. If you are using a mortgage loan, you can only use the money to buy or build a house. We cannot spend them on consumption.
The best credit offers
What are the best credit offers on the market? First of all, the cheapest ones are the most attractive. In order to assess the credit costs, we should look at the RRSO, i.e. the Real Annual Interest Rate. It is given in percentage terms and reflects the relationship between the loan costs and its amount. The method of calculating APR is strictly regulated in the Act on Consumer Credit. Therefore, banks calculate this parameter according to a uniform method. This gives us an excellent tool to compare credit offers. The APR has this in common that it takes into account not only nominal interest rates, but also the commission and preparatory fee. In a word, it takes into account all the costs associated with taking out a loan.
Credit calculator
You can also use a credit calculator to compare credit offers. You’ll find lots of credit calculator pages on the internet. It is important that this calculator provides you with a clear and comprehensible instruction manual. So that we can correctly enter the data. If you do not enter the data correctly, the result of the calculator may be significantly distorted. Usually we enter the amount we want to borrow, the length of the repayment period and the interest rate. The calculator will perform a credit simulation, so that we can get an overview of what our credit may look like. We must remember that these data may differ from the real offer of the bank.
Cancellation of a loan
Loan offers usually look very tempting. He often decides to take out a loan too hastily, often on impulse. Sometimes, after signing a contract, we come to the conclusion that we have made a mistake. How to get out of such situations? Is it possible to cancel a credit agreement? The answer to that question is yes. There are just a few formalities to be followed. First of all, you have to be on time. You have 14 days from the date of signing the loan agreement to cancel the loan. It results directly from the provisions of the Act on Consumer Credit. Cancellation of a loan must be in writing. Naturally, you must return the entire amount of credit. You have 30 days from the date of submitting the letter of resignation to do so.
Credit offers
