Cash loan – what to replace?
The operation of a cash loan is known to almost everyone, so you do not need to explain what it is and what it is intended for.
The most important thing is to be cheap and above all fast. Often one does not go hand in hand with the other, so you have to compare offers with each other.
It is worth answering the question
How much do I really need for my needs? The answer will not be unambiguous, for example, what installments can I afford and can it not be replaced by another solution? It is possible, you only need to search well. One such solution is just credit card credit.
Distributed in equal installments, it is sometimes a guarantee of a cheaper cash loan. Many bank branches already have such an offer. A large debt limit allows you to use cash for any purpose. You do not have to remember the next loan repayment date, because it is the bank that collects the appropriate amount from the account.
Another option is a revolving loan in your personal account
It is worth emphasizing that this solution is much cheaper than the cash loan itself. The method of calculating interest is also different, so it is worth asking specialists from the bank in which we have an account. They are calculated on the sum that we actually used, not as in the case of cash loans, on the whole sum borrowed.
If we do not use the whole sum, the bank does not charge interest. Each payment to the account causes that the debt decreases. Either way, you’ll notice that this method is slightly different. Nevertheless, there are customers who forget what a revolving loan is.
In order for the loan to not be too heavy in the future, there are a few rules to keep in mind. At first glance, this is the interest rate. However, do not confuse the interest rate with the cost of credit, because these are two other things.
The interest rate on the loan
Is set by the bank branch, while the cost of the loan is the total expenses associated with it. Often, customers fall into the trap, because banks almost tempt with attractive interest rates. In most cases, they don’t even mention the cost of the entire loan, trapping customers. Additional credit costs include, for example, credit insurance, interest rate, preparation fee or insurance due to loss of time.
Before you decide on a loan after watching a colorful advertisement on TV, think carefully, also look at offers from other banks. It is not uncommon for the last offer to be much more attractive.