Here’s how to compare loan types and choose yours

Getting a loan is a very important decision that must be looked upon with great responsibility. That’s why we at Low Interest list the types of loans that exist and what you should consider when choosing.

What kind of loans can I get?

What kind of loans can I get?

Currently there are two available credit types on the market: the payroll and personal. Regardless of the type of loan, it is important to consider your income as it is from it that you will pay off the loan amount.

Payroll loan

Payroll loan

Payroll-deductible loans are the most popular alternative, and the interest rates applied upon the annual correction are always lower than in most cases. However, if you intend to make a loan, you should know that in this mode, the amount of the installments is debited automatically and with the salary received by the contractor every month until the end of the contract.

In a way, this ensures a certain security in the borrowing of both the bank and the loan applicant. The fact is that while you are working in such a company, installment payments are made automatically, with minimal risk to the bank and institutions. Always comparing loans and rates included should be focused as the main criterion.

Personal loan

Personal loan

This other type of loan is also a great credit opportunity available on the market. This loan option should also be very well compared and evaluated before signing the contract. In this case, the rates are more diverse and end up varying according to the amount borrowed and the line of credit that fits the customer profile.

Compare the loans

Compare the loans

It is crucial that the value of the installments and the dates on which they are mature are in accordance with carefully planned family planning. It is therefore very important to take into account the peculiarities of each operation. In cases of installation arrears the interest ends up being exorbitant within the reality of the contractor. Be aware that the interest charged by financial institutions is much higher than the amount received at the time of the loan.

Being aware of this is more than fundamental to compare loans. The tax burdens included in the credits released by the institutions are somewhat abusive and should be annualized in the short, medium and long term by an individual or legal entity seeking such a loan. Ideally, you should talk to your bank manager before finalizing a contract.

Watch out for the parcels

Watch out for the parcels

It is very important to be aware of the amount and amount of the repayments on your loan. It is therefore interesting to have a real sense of your financial situation, as it is ideal that you repay your loan without causing financial problems.

Auto or Bank Financing Credit

Many people still have the dream of buying the first car or buying a zero kilometer car. But without cash for cash payment, only financing remains as a form of payment. However, there are some more advantageous options than others regarding auto finance.

Once you have decided on your vehicle model, year, and version, you need to decide between financing methods. There are two credit options for auto finance, namely: auto finance and bank or finance finance. Knowing how to choose the right option can cost you some savings.

What is the best credit option for finance a vehicle?

What is the best credit option for finance a vehicle?

Like many issues, there is not exactly one option that is best for all cases. However, some cases may benefit from advantages over one line of credit. An example of this is if you have a pre-approved credit at a bank or finance company before you even try to get financing at the automaker. This step forward may cost the interest rate charged by automakers as a bargain.

Being prepared for financing is the first step for anyone who wants to get good financing for their vehicle. This preparation requires a clear name, credit pre-approved by a bank, an updated registration form and a credit history on the green Serasa Experian Score Credit score. These peculiarities help consumers get financing more easily.

By being prepared, you will have several possibilities to finance your vehicle. The next step will be to research the interest rate charged by the automakers you intend to buy the vehicle from and the banks and lenders that provide auto finance lines. After researching, you will know which option is best for you, as some funding requires different criteria from others, so only you can decide which one is best.

How to get a loan?

How to get a loan?

To get good financing for your car, you must first run bank simulations to see if you have pre-approved credit. The bank or lender conducts a credit analysis to determine the risk in financing a vehicle for you, the entire process takes about a few minutes.

If you have credit pre-approved by your institution, your funding will have the rule that the amount of the installment may commit only 30% of your monthly income, which is a legal determination of all financial institutions. Another important detail you should know is that the longer the payment period, the more interest will be charged to you.

To save money, you should first discuss bank interest rate reductions and special financing conditions. But if you are not satisfied with the bank’s offer, you can still turn to other banks and lenders or auto makers. With your credit simulation in hand, you will be able to borrow conditions that are better than those offered by the bank.