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Given the large number of offers that we find in the current market is difficult to differentiate the cheap loans from the credits that only seem so. There are several factors that we must take into account to compare the different loans to know if we have a good offer. These are the factors that we must take into account:
- Interests: it is the most important factor, but not the only one. Each type of loan has a different cost depending on the purpose for which they were designed. Cheap personal loans to finance projects have an average cost of 8% APR, while private loans of small amounts cost around 1% per day. It is important to look at the APR (Annual Equivalent Rate) and not the TIN (Nominal Interest Rate) to compare between prices since the APR includes the cost of other factors such as commissions, while the TIN only shows the interest that is shown. will generate.
- Commissions: only when we want to get cheap personal loans since private loans do not have commissions, although lately there are more and more entities that eliminate all the commissions of their offers. The most common commissions are those of study, opening, and amortization.
- Bindings: these are products that we must hire to access the financing we want to achieve. There are two types of linked products: free products such as direct debit or payroll or receipts or those that have an additional cost such as the purchase of insurance. Many entities offer the optional hiring of these products in exchange for interest rebates. If it’s about free links, it’s a good offer; although if it is cost-related, we must calculate which of the two options is the best one for us.
- Additional expenses: the most common is the signature before a notary in the largest loans since the expenses are borne by the borrower.
Taking into account these factors when comparing offers we can make sure that we choose the cheapest offer. In addition to these features, to get good deals on cheap loans we must take into account other factors such as the convenience of requesting them (the fact of being able to request and hire them 100% online, for example.).
5 tricks to pay less for loans
In addition to the above characteristics that allow us to differentiate between the cheapest loans, we can apply small tricks that will help us save on interest in any type of financing:
- Evaluate the expense: we must have a detailed budget of the amount of financing we need and the repayment term that best suits us. By requesting only the capital that we need we can save since the interest will be generated on a smaller amount.
- Compare between offers: we should not be afraid to go to other entities of which we are not customers. Comparing other offers from other lenders will help us get the best cheap loans, even if that means moving to another bank.
- Shorten the term: the longer the term, the more interest will be generated during that time, which is why the loan will be more expensive. That is why we must shorten the deadline and increase the monthly payments always within our possibilities of reimbursement.
- Take advantage of the amortization: if the entity allows us to repay the loan without cost we must always take advantage of the additional liquidity to return a little more and shorten the term, which will result in less interest.
- Negotiate with the entity: having compared between different offers, we can go to the entity where we want to obtain financing and try to match the conditions of the other loan. This option will depend to a large extent on the entity and our bargaining power.
With these tricks, we make sure we can get the loans we need at the best price and not overpay. Being able to get cheap loans does not mean that we should hire them since it is advisable to request financing only when we are totally sure of being able to reimburse it. Otherwise, we can end up over-indebted and end up paying more.
How to get cheap loans online
Thanks to the installment loan application of new technologies in their contracting processes, entities can perform pre-grant analysis much faster and since the entire process is online, at the moment they receive the signed contract they will make the transfer of the money requested- click here to apply.
It is more common to find cheap online loans that are offered by private equity lenders. The reason is that most entities of this type landed in our financial market with the online world implanted in their business model. This fact has generated a reaction in the banks and nowadays we can find cheap loans online also commercialized by the banks.
To know which banks work with each lender and choose the company that works with our bank to get the requested capital, we can download the free guide prepared by the experts of HelpMyCash in which we can learn what depends on the delay of the transfers and the tricks to get the money we need in the best possible conditions.