Anyone who intends to take out a cash loan tries to find the cheapest one. Nobody wants to pay too much commission. It is better to use this money for other purposes. To find the right credit for us it is worth to use different types of price engines and calculators. Credit ranking is an invaluable tool, allowing us to save a lot of money.
What is a cash loan?
Without going deeper into the definitions described in the difficult legal language, we can say that a cash loan is a transfer of a certain amount of money to be used for any purpose by a bank. We declare to repay this amount of money within the agreed period of time together with additional fees, which constitute the bank’s earnings. All issues concerning the amount of the loan, the number and amount of installments, as well as the amount of interest and commissions are defined in the loan agreement. Cash credit, otherwise known as consumer credit, is only one of the types of credit that we can get from the bank. To buy a flat you will receive a mortgage loan, which will be secured by a mortgage in favour of the bank. You can also get a credit card, which is another type of credit for everyday shopping.
What is the difference between a credit and a loan?
These two financial products differ primarily in terms of legal issues. The rules for granting and repaying loans are regulated by the Banking Law Act. It clearly states that only banks that are supervised by the Financial Supervision Authority can grant bank loans. The conditions for granting credit are quite strict and all banks must comply with them. Therefore, it can be quite difficult for people with low creditworthiness to get a loan. Here too, the whole procedure is much simpler, because any company or person who has sufficient resources for this purpose can lend money. The conditions of granting a loan are included in the agreement between the lender and the borrower. When granting a loan, we are not controlled by the Polish Financial Supervision Authority.
Credit Ranking – How to choose the best one?
When choosing the best loan, we should first of all be guided by the total cost of obtaining it. Most of us, however, are suggesting the amount of the instalment, which is a mistake. The amount of the instalment is not really related to how much the credit costs. We pay the smaller installment monthly and therefore it seems to us that the loan is cheaper. Unfortunately, the smaller the installment the longer the repayment period and in the end by paying the lower installment to the bank we will give much more money than in the case of larger installments. Therefore, the basic criterion should be the total cost of the credit. In promotional materials this value is usually not given. We get to know it only while browsing the agreement or in the calculations from the credit comparison engines, which we will mention in a moment. In promotional materials banks usually give the value of APRSO. Probably they wouldn’t do it, but that’s the law in the USA. Therefore, this information is usually shown in small print somewhere at the bottom. Comparing APRSO in many different offers we can check which credit will be the cheapest. APR is an annual real interest rate. It includes all the costs of the loan in percentage terms.
In order to make searching easier, it is worth to use credit comparison engines, which provide all this information (APR, credit cost, instalment amount) in one place for different credit variants in different banks. It is enough to enter the amount of credit and the length of repayment in months once to receive calculations for all banks granting credits in the USA. Very convenient and useful tool.
Is it possible to resign from a loan?
American law allows for the possibility of cancelling a signed credit agreement within 14 days. We do not need to give reasons for our cancellation. The only requirement is that our resignation must be made in writing. We must then return the entire amount of money within 30 days. We will not have to pay any additional fees. This is a tribute to those who have made a hasty decision to make a commitment and want to withdraw from it, or have found a better offer.
Low-interest credit
If you are interested in a low amount of credit maybe it is worthwhile to take a look at the moments? Many companies offer interesting promotions consisting in the fact that the first loan we receive completely free of charge. We do not have to pay any administrative fees, commissions or margins. We borrow 2000USDi and give back 2000 USD. The only requirement is to repay the entire amount within the required period of 30 or 60 days. If we are late at least one day with the repayment, we will be charged the same fees as for a standard loan, and these are much higher than for a traditional bank loan.
Credit Ranking
