Sometimes, before choosing a loan or loan, we decide to visit a branch of the bank to find out about the terms and conditions. Although it is the duty of the financial institution to provide all the information, we may have unanswered questions after the visit.
We need to be cautious and informed about the loan, so it is important that we do not make a decision that will later have a negative impact on our lives.
How to inquire before applying?
Many people argue that instead of applying online, they would prefer to contact a bank employee in person. When they cross the threshold, banks may naively think that they will receive all the necessary information over the next few minutes. In fact, however, they will feel that the counselor is giving them ambiguous answers. Eventually they return home without having any overview of the loans. Moreover, the bank will only inform them of its own products, so they will not have a comprehensive picture of loan offers.
Written descriptions are thorough
When personally informed, it may easily happen that not everything is clear to us. It is possible that we do not understand some of the terms, but we do not want to talk to advisors. Therefore, it is best to request all product information in writing.
At home, it’s much more convenient to read everything in front of a computer. If we do not understand something, we can try to find an explanation on the Internet or make a note of our question, and with the questions prepared, visit the bank to explain what we need.
Which is the best choice?
Talking to a counselor can take quite a long time without reaching any conclusion. If we compare the available offers at home, for example, using comparison sites at the bank we selected, we only need to complete the process. The main thing is that we make a rational decision, not an emotional one. For example, choose the offer that is the most advantageous, and not the one offered by a nice advisor at the bank.
A few things to look out for before you sign a loan agreement
The most basic information about the loan is the amount requested, repayment period, interest rate. But that’s not all. The main indicator by which we can compare bids and then select the most advantageous bid is APRC – the annual percentage rate of charge.
As an increasing number of loan applications are submitted online, it is not difficult to find a better offer if one does not suit us. This is done by the aforementioned comparison websites.
Ancillary costs that may be added to the loan amount
One of the biggest misconceptions is that the loan can only be increased by the interest rate. However, this is not true because there are other costs or fees. These are included in the APRC indicator. But this is still not enough, as there are fees that providers may not add to the APRC. There are also late payment fees or a reminder fee.
The information shall also include what happens in the event of late payment or non-payment
After careful selection of the loan, we should not get into such a situation, but banks should still inform applicants about these matters before signing the loan agreement. It is important to stress that the APRC does not include these fees and costs.
What we buy from a loan can make our lives more enjoyable because it enables us to realize our dreams. At the same time, it is very important that we get enough information about each lending option, because this is the only way to make a responsible decision.