In itself, a cheap loan is always the better choice, as it really brings a financial advantage compared to other offers. But too much fine print often obscures the focus on the essentials and the advertising of individual credit providers is too tempting. Those who do not thoroughly study the respective offers will sometimes experience a nasty surprise. A quick and objective overview of bad credit payday loans guaranteed approval offers comparison portals on the Internet- useful reference.
Bad credit payday loans guaranteed approval: Stock up on cash you need
A cheap loan is clearly defined by low interest rates. However, it is important to penetrate deeper into the matter, because interest is not equal to interest. Although fees for credit processing and credit checks may not be offset since 2014, there are still costs that are included in the calculation. The main cost factor is the interest. The nominal or nominal interest rate depends on the market situation, on the respective terms negotiated and on the solvency of the customer. There are both loans with a fixed and fixed borrowing rate available. Any deductions, as well as the repayment terms, also have a significant impact on the calculation. In addition to the debt interest, the consumer contracts therefore also show the effective annual interest. This APR defines direct credit costs in percentages and per year. This makes the comparison much easier. If the cost-determining factors and the interest rate change over the term, the initial annual percentage rate of charge is stated.
Caution additional costs!
With a larger loan, it is often customary to demand a discount, the so-called discount. In this case, the credit institution reserves the right to withhold a certain percentage of the full loan amount. The discount is an interest prepayment, which later reduces the payment burden. It is important to pay attention to the additional credit costs. The indirect additional costs do not necessarily have to be preserved in the comments on the effective interest rate, but they are included in the consumer contracts, which should, therefore, be read carefully. These include, for example, account maintenance fees or provision interest. Remaining debt insurance also belongs in the category of additional costs. These insurance policies serve to secure loans and loans.
If residual debt insurance is required by the lender, then he must show the costs for this with the effective annual interest. Residual debt insurance is customary in particular for credit without a credit check or generally for real estate loans. If the insurance is taken out voluntarily, it is worthwhile taking out a direct contract with the insurer, as many banks require additional commissions for this purpose.