Every borrower would like to issue a loan under the terms of which they would have to pay back as much money as they borrowed. However, no matter how strong the desire to believe the promising advertising of financial institutions, unfortunately, there are no such credit programs. It is worth remembering that such types of lending are simply prohibited by law. If you can not do without a loan at all, then you can try to choose the most favorable offer.
The acquisition of the “here and now”
Today, the lion’s share of banks ‘ loan portfolios is taken up by consumer loans. They are designed quite simply, and people sometimes can not resist the temptation to make a purchase here and now. Moreover, such a loan will not require a lot of time, or any “supernatural” certificates, or guarantors, or, sometimes even, additional costs in the form of an advance just a passport and a code will be enough. Sometimes you don’t even have to look for a lender in shopping centers, credit specialists themselves can offer you a loan for a product you like.
However, before rushing with your passport in hand to the first specialist who interested you in a loan offer, it would be useful to think about whether it is profitable? After all, the easier it is to issue a loan, the more you will have to overpay.
Who is in a hurry?
The main thing to understand is that a quick loan in half an hour can never be inexpensive. If you intend to take a profitable loan, you should not focus on Express varians, since these are probably some of the most expensive loans.
If you want to take a really profitable loan, it is better to apply directly to the financial institution. The registration process will be longer (it may take up to several days), you and your solvency will be carefully checked, but the interest on such a loan will be significantly lower.
What kind of profitable consumer credit is it?
A profitable loan should be understood as one that implies a minimum of overpayment. Initially, its size will be affected by the credit rate. Therefore, the main task of the borrower will be to find a lender who will lend money at a minimum interest rate. However, to do this, you need to adopt not only this indicator but also such a concept as the “effective interest rate” (the full cost of the loan.
This indicator can dramatically change your opinion about the amount of the proposed loan since it includes all possible commissions and insurance premiums.
By choosing a lender with the right conditions, you are already, in fact, taking out a profitable consumer loan. However, you should also consider the following important points that can reduce the overpayment on the loan, which you can influence yourself.
Choosing a term
When choosing the period for which you borrow money, you should understand that interest will be accrued for each month of use. Accordingly, you take a loan for a short period of time you pay less. However, you should not miss an important point here: the shorter the borrowing period, the larger the amount of payments will be, and this can already become an overhead for the family budget.
The way out is this; if the loan you are making involves the ability to repay the debt ahead of time, you can issue a loan for a longer period, and then simply pay it off before the terms assumed by the agreement. After that, the interest will be recalculated, and the overpayment will decrease.