How to decide which Bank is better to take a loan

The Author of this article works in one of the large European banks, which are widespread in Russia. Are familiar with the specifics of financial services, particularly loans and credit cards. This article will not promote specific companies, however, you will find useful tips that will help you to define, in what Bank better to take the credit.

What is a loan? We will not refer to dictionaries and teaching materials for employees of the Bank for the precise definition. We only note that the loan - this financial service, you have to pay. You pay the Barber for what he was doing you a haircut. Pay the travel Agency for the proposed permit and the visa, if granted. And pay the Bank because they give you the money right now. Of course, you could save up the money yourself. You could wait half a year or couple of years. However, this is not always justified: sometimes it is better to overpay, but to get the desired thing in the near future. For example, you have a broken TV. You could save over half on a new TV, but it is better to take the credit in Bank and to live these six months with the necessary comfort. And some areas of life - medicine, education, important events in your life - cannot wait. And then you have to pay attention to the financial services market and to decide in what Bank better to take the credit.

Free cheese is only in a mousetrap. Every Bank needs to obtain the loan with the profit. Agree, no Bank could exist if it had not received from their customers a solid percentage. However, not all of these businesses operate quite openly. In some cases, you may encounter unexpected costs.

How to understand in what Bank better to take the credit?

First, please only the world's major banks with a significant client base. For famous Internet portals you will be able to meet the rating of banks to learn, how many clients, how many years they work in the market. Reliable large institutions serviced 20 million customers. If the company appeared on the market relatively recently - you run a great risk of making it credit. However, the difference between two large banks with a client base of 20 and 30 million customers is almost there, look at current rates and not the Bank itself. Rates in these institutions are constantly changing, so a company that offered the minimum rate last year, can be quite expensive taking into account the situation of the current year.

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Second, find out, does the Bank charge a service fee in excess of the interest on the loan. Today this is rare, but be sure to check this item. Some banks take with their customers money for a service card, which was transferred a loan. You may require additional funds for insurance, for sms-alerts, and much more. To rid yourself of surprises, ask an expert, drawing up credit, what is the exact amount you will have to pay including all additional costs. Employee well-known Bank can't hide the truth from you.

Third, find out whether your rate the possibility of early repayment. Paying off the loan early, you will significantly reduce overpayments, saving on the extra interest. Always try to pay the loan ahead of schedule - part or full. It will be for you a very profitable operation. However, before to transfer to your account you can Deposit call your Bank. Probably, you would first have to write the application for recalculation of interest.

Fourth, before you get a Bank loan, ask them to calculate your overpayment. The annual percentage rate does not reflect the overpayment. The actual overpayment is calculated by complex percent. Rate of 70% per annum can lead to overpayment of 20-50%, depending on the amount and term of the loan. By entering into a financial enterprise, take your time with the statement "I want to take out a Bank loan," ask more about the current rates, monthly payment and required documents. Most banks can issue the credit according to two main documents, but with a maximum interest rate. Determining which Bank is better to take a loan, don't forget to take the help form 2NDFL, and a certified copy of the work book - this will help you cut costs. Be careful and wisely choose the Bank, then you will be able to protect themselves from all sorts of trouble.