Connect with us

Business

Compare Loans: What, Where and How to Compare Them

Kenneth Rice

Published

on

When it has been decided to ask money from a financial institution, it is usual to make a comparison of the loans offered in the market to know which one best suit the personal circumstances of each applicant. Do not bother comparing loans, in fact, we include it in the top five of failures when requesting a credit in the post Choose a loan: do not make these 5 mistakes! Because a lower interest loan than another may be very attractive in principle, but we could end up paying more for it if we do not pay attention to other issues.

Next, we want to make it easier for you to compare loans, giving you some guidelines on what you have to look for the comparison to give good results and showing you some pages were to compare them.

What to consider comparing loans

The first thing to be clear about is that we meet the requirements to request a loan. Then, to get the best offer, when comparing loans you have to look carefully at what each bank, savings bank or private financial institution offers and assess which one best suits our needs. Thus, we must pay attention to:

The TIN or Nominal Interest Rate:

What the financial entity will charge us for leaving the money, which is usually a fixed percentage of the borrowed capital. It can be annual or monthly and it is important to verify in the loan contract that this is well specified, since our loan will be more expensive depending on whether it is one or the other.

The commissions:

Another percentage cost of the money borrowed that some entities charge for processing the loan. They can be of opening (for processing the granting of the loan), of study (for valuing your application), of early repayment (penalty that the lender usually charges to recover the interest that stops entering when we want to amortize capital to cancel a loan before the contracted time) and / or notary expenses (if the lender requires your presence to sign the loan; it is not included in the Annual Equivalent Rate or APR).

The APR:

Percentage resulting from a standardized mathematical formula that takes into accounts the TIN, the commissions and the term of the loan, but the expenses to third parties or related products. The higher the APR, the more expensive the credit will be.

Related products:

Although it is not a requirement in Currency Now, some traditional banks usually require the contracting of other products of theirs (life insurance, non-payment, deposits …) or the direct debit of the payroll before granting the loan.

Convenience in the request and agility with the delivery of money:

The procedures in a traditional bank or cashier are always longer and more uncomfortable than in an online financing entity, such as Currency Now. In front of the annoying queues, paperwork and waiting, in Currency Now you will know in a matter of minutes if your loan has been approved and if the answer is affirmative, it will not take you much longer to have it in your account.

Where to compare loans

In the digital age, it is much easier to compare loans thanks to the Internet. At a time when practically all companies and businesses have a website like Market Watch (if not, one could almost say they do not exist), we can compare loans looking for page by page among the lenders the conditions that best suit us, or We can go to one of the many search engines that are in the network.

Kenneth is a veteran journalist who started his career back in 1987 when journalists used ballpoint pens, notepads, and good old fashioned legwork to track down stories. He’s since embraced the digital tools his younger colleagues favor, but he refuses to move on from the core principles of journalism: fact-checking, protecting sources, and journalistic integrity.

Continue Reading

Trending