Cash Injection – How to Get a Cheap Online Cash Loan
Cash Injection – How to Get a Cheap Online Cash Loan?
Everyone is wondering how to do it to get the best loan at the lowest possible cost, so we decided to present the most important issues that will help you get the most advantageous loan.
Low interest rate, zero commission, no insurance, – what exactly determines the cost of the loan?
A low interest rate does not mean that our loan will be cheap. Many of the offers available offer a low interest rate, but something for something to get a favorable interest rate is required to pay a commission or life insurance premium. What should we pay attention to?
From the point of view of the future Borrower, the total cost of the Loan / Loan is precisely valid, and all costs that as a consumer we are obliged to incur in connection with the consumer credit agreement. In particular, it is about interest, fees, commissions, taxes and margins as well as costs of additional services in the event that their incurring is necessary to obtain a loan – for example, the cost of an insurance premium.
All the aforementioned credit components and loans decide on its actual cost – Interest rate is only one of the components to which we should pay attention.
Commission or insurance – What to choose?
When deciding on this cost, we should analyze what will be more profitable for us. If we intend to pay back the cash loan earlier, it would be more beneficial for us to choose insurance instead of commission, because the commission cost is not refundable after the loan has been repaid earlier. In the case of insurance, we can count on a refund of some funds. In addition, the insurance is dedicated to all those who are concerned about repayment of the loan / loan in the near future. The credit insurance in this case will be a lifeline that will secure the repayment of monthly loan installments, e.g. in the event of job loss. A more favorable option will be to pay commissions in a situation when we plan a long loan period and we will not make early repayment.
Keep in mind that:
- the commission is charged once for the loan amount borrowed
- the insurance premium is high for a long loan period
Many customers, however, prefer to pay a commission and avoid insurance without analyzing their individual situation. The reason for this is usually the bad experience caused by unreliable sales of the insurance product, which is why, when someone hears about insurance, you do not even want to delve into the details.
Choosing a cash loan with time insurance may be more beneficial to us than offering a loan with a commission for granting. Remember, the commission after early repayment of the loan is non-refundable – a variant beneficial for the bank. In the case of an offer with insurance, we can count on the return of the insurance premium, which is due for the unused period of insurance.
APY – what is it?
Actual Annual Interest Rate (APR) – thanks to this parameter we have the opportunity to compare loans, taking into account the same loan period (repayment period). The actual annual interest rate includes not only the interest rate of the so-called nominal credit / loans, but also a commission for granting a loan / loan, handling and preparation fees, a method of calculating the interest on charges. All this is due to the Consumer Credit Act, which provides that the total cost of a loan includes the value of additional services when it is necessary to obtain a loan.
You may encounter a situation such that the nominal interest rate of the loan granted is, for example, 6.99%, and the value of the APRC parameter is 23.4% and the additional credit costs (commission, insurance, etc.) have an impact on it.
When looking for the best loan, compare the loan offer based on the APRC, which must be presented in every credit offer.
When you are not sure whether you need a product at all, do not fill out the contact form. In this way, you do not waste time with other customers who at that time expect quick help from us, thanks to which we can keep high standards of service and a fast process.
If you are looking for a phone for us, you will not find it here. We do not run the Call Center department because it is related to the costs of a special line (recorded calls) etc. By filling out the contact form, you give us a clear signal that we will contact you in a specific matter. However, if you like to hang on the helpline and talk to a pseudo-adviser about generics, go to another place instead of specifics!
How to get a favorable interest rate – credit / loan terms?
The terms of a cash loan / loan depend on several factors, including from:
Sales Channel – distribution
In one bank you can meet with various offers, eg bank X offers a loan on simplified terms without documentation via a remote channel – electronic banking, which encourages you to receive a loan “on the spot” up to PLN 2,000 or an offer prepared by Call Center (caller) consultant). However, when you go to the same bank X (branch), the advisor submits to you another proposal definitely more attractive if we talk about costs. What is it related to?
First of all, we have to go through the whole process of credit verification and present documents in the scope of obtained income to the loan application. Therefore, quickly and easily – it does not mean cheap. We also point out that the bank partners (broker, broker, credit advisor, financial advisor, etc.) may offer a better offer more favorable than the one currently offered by the bank branch. For banks, we are a valuable source that provides the customer, so they care about this by offering us various credit campaigns. And the same may be the case when a bank only puts its channel of distribution – the branch network.
Usually, the branch will never be cheaper – the Branch has its break-even point – profitability, which must be implemented by the Director of the facility, so it is not profitable to sell cheaply, and it is forbidden – plans and other important factors for the bank must be realized!
Bank offer X
Analyzing the offers of various banks, it may turn out that the differences in loan proposals diverge significantly, for example: Nominal interest rates range from 0% to 9%, – loan terms vary depending on whether we use the offer variant with or without insurance.
Negotiate always is worth it whether it is in the case of a loan or when we are shopping at the Shopping Center. It may turn out that we can pinch ourselves a bit. Usually, in such situations, it should be set that the bank can go hand in hand, but it will involve the purchase of an additional product, eg. Create an account and declare a monthly level of income from remuneration or will be associated with receiving a credit card from which we will have to use. All this should be analyzed, because it is associated with additional costs and additional conditions that must be remembered – card account turnover, credit card turnover, etc.
What does the Bank know about us – how does this affect the parameters of the loan granted?
The Credit Information Bureau (Retrodatabase) there provides banks with information on all borrowers regarding loans that have been granted and how they are serviced. Are we repaying loan installments in a timely manner or we are delaying – so there is information about people who pay their liabilities to banks on time and, above all, people who have numerous slips or accidental situation in paying the liabilities they have incurred.
In the Bank Credit Information you can find information about the obligations we have and also those that we have paid off. All credit products are reported there, ie cash loans, mortgage loans, installments loans and guaranteed loans. If there is no information, which information does not bode, it is not good for us – we will get a loan under worse conditions or we will receive a refusal to grant credit. Therefore, it is worth building a positive story much sooner, if we are going to apply for a mortgage for a year so that we will not be surprised by the refusal to grant a loan or the possibility of granting a much lower amount that would satisfy us as a dream about your own apartment will have to be postponed. It is worth to buy something in installments or take out a small loan to leave a positive mark for a future bank that would consider granting us a larger commitment in the form of a mortgage.
The Bank analyzes the extent to which all credit limits are used, whether in the account or on credit cards. A more risky customer is one who usually uses the limit in the entire amount available. Banks give clients the so-called a risk segment, e.g. letters. The higher segment – the more risky, your offer will be more expensive. If you have poor scoring then you may have a problem getting a loan. Therefore, also in the case of a cash loan – a cash loan to obtain the final information on the interest rate, a loan application must be submitted and the bank will analyze the client’s situation, assess the Retrodatabase and the scoring. After this analysis it is possible to get complete information on all credit costs – interest rates.
You should not suggest ads on TV, the Internet or billboards, because in order to get the interest there, you often have to be immaculate, have a long time job and higher earnings to get what is shown, sometimes it is unachievable – pure marketing treatment.
Questions worth asking a credit counselor when we try to get the best cash loan:
- What components have been included in the calculation of the APRC? – what makes up the cost of the loan (commission, insurance)
- What can we do to reduce the cost of credit? – ie what additional products will influence the possible lowering of the interest rate
- Is there a provision in the contract about withdrawal from insurance? In the event of possible early repayment of the loan.
- A request to submit an offer with the lowest APRC?What pays off?