When choosing to take out a bank loan, you must be on your guard. Above all, your approach is dictated by the need for capital and by your need for liquidity. The ideal offer should therefore both meet your expectations without having too much impact on your budget.
The Importance of Comparing Credit Offers
By comparing the loans before signing an offer, you will have the opportunity to find a loan that meets your needs and that will come back to you at a lower cost. This also saves you from unpleasant surprises by escaping the traps of banks. Indeed, a small difference on the APR can weigh heavily on the total cost of the loan depending on the amount borrowed and the repayment duration. And most of the time, borrowers tend to just look at the interest rate and forget about the loan terms and other fees. Compare the loans before you start then remains a priority, not to say a necessity.
Things to consider when comparing loan offers
For a first comparison, you can use the APR as a basis. However, in order to fully understand the hidden costs of your loan, also consider the following:
- The interest rate: it allows you to have an idea of what you will have to pay to return the requested amount.
- The intervention threshold and ceiling: it helps you to determine if the said offer really meets your needs.
- Modularity: it gives you the possibility to adapt your income to the payment of the contracted loan.
But in the end, do not rely solely on these elements, but rather on the total amount of the loan. Remember to find out about active establishments and their detailed offers. Here are small details that seem trivial and yet could inflate the bill in the end. They are not always highlighted, but are still indicated in the APR (Annual Effective Annual Rate). It is therefore important to base your comparison on the total cost of your loan by including the elements mentioned above, but also:
- Bank charges;
- The repayment period;
- Loan insurance;
- Administrative and warranty costs;
- Application fees applied;
- the broker’s remuneration (if any).
This lets you know the intricacies in the set before you choose.
How to do a loan comparison?
A more than essential step before applying for a loan, the comparison is not to be taken lightly. You can choose to do it yourself, or call on outside help. But in any case, do not neglect this procedure.
For example, you can hire a professional broker. This credit expert will accompany you and guide you throughout the process. From the comparison to the advice until the signing, he will be able to take care of the negotiation and will indicate the good plans to you.
Otherwise, you can conduct online market analyzes. With some comparators, you do not have to provide your contact details. This applies especially if you are still at the information stage and you prefer discretion. With others, however, you will fill in the loan details with a standard contract offer. You can directly sign and finalize it on the site itself by delivering them the few documents required.