Cash loan, necessary information
Cash loan is one of the most popular forms of borrowing money from financial institutions. Thanks to it, we get the opportunity to finance the renovation of an apartment, the purchase of household appliances or the dream vacation trip. Before we decide to make such a commitment, there are a lot of questions aboutcash loans that we will answer.
How much do you have to earn to get a cash loan?
One of the first concerns of people who intend to apply for a cash loan is the amount of their earnings. The cash loan can try each, regardless of how much he earns.
Each bank sets its own criteria for granting loans, thoroughly analyzing and assessing the ability of individual customers to repay the loan. From the financial institution’s perspective, the most important thing is not how much we earn, but what is our creditworthiness when we apply for a loan.
In a situation where we earn relatively little, but so far we have paid all our financial obligations on time and we are currently not in debt, we still have a good chance of receiving a cash loan. On the other hand, the situation of people who earn very well, but at the same time have problems repaying their existing debts is much worse.
Where is the best place to take a cash loan?
Cash loans are offered to us by virtually all banks. Their offers often differ significantly, even in terms of commission charged, debt interest rate or APRC. The decision on which of these financial institutions should apply for a loan should therefore be preceded by a thorough analysis. Online cash loan comparison websites and loan calculators are useful tools that have already helped many people in their selection. They present the offers of various institutions in a quite clear way, depending on our individual needs and requirements.
How much time is waiting for a cash loan?
We have to wait the longest for the bank to decide to grant us a cash loan. How long this procedure will take depends on several factors. One of them is the amount of credit we are applying for. In the case of smaller amounts, the decision can be made within a few minutes, but if you are applying for a slightly larger cash loan, it is usually necessary to provide additional documents, which takes more time. Much faster, we can also count on a decision in a bank where we already have a personal account, because it has information about our financial situation.
However, once the decision is made and it is positive, the money can reach our account even on the same day. Of course, a lot depends also on the time of day when the transfer will be ordered. If these are afternoon hours, we will usually have to wait for the money until the next business day. We can also count on quick credit collection when we decide to pay it out in cash.
How to pay off your cash loan quickly?
Each person taking a cash loan must pay it back within the time limit that is set at the stage of signing the relevant contract. Usually, every month, we are obliged to transfer the appropriate amount, including interest, to the bank. Each of us can, however, decide to repay the loan faster than expected. This is especially recommended if we have a surplus in our budget that we can transfer to such a loan.
Some are afraid that they will bear the cost of early repayment. Unnecessarily, because the Act of 2011 gives borrowers the right to repay all or part of the debt before the date specified in the contract. And any compensation for the bank in this respect should not be higher than 1 percent. the amount to be repaid early.
What should you pay attention to when taking a cash loan?
When deciding to take out a cash loan, we should first of all determine our options when it comes to repayment. Let’s analyze our budget and determine the maximum monthly installments we can afford. Think about whether we need cash loan insurance.
While reviewing the offers of subsequent banks, carefully check the conditions proposed to us, focusing largely on the total cost of the loan. It is both about its interest rate and commissions charged, but also APRC, which is the actual annual interest rate.
It is also worth remembering that each bank is required to provide us with an information form before we sign a contract with it. This is very important because this document contains all information regarding each fee we pay in connection with the loan.
Before we sign the contract with the bank, it is also good to think about whether equal or decreasing installments will be a better solution for us. In the first case, we pay the same amount every month to your cash loan. Such installments then include the repaid debt with interest. At the beginning of the loan, we pay back more interest and less capital. However, at subsequent stages, the proportions are reversed.
As for decreasing installments, they get lower as time goes by. They consist of a fixed amount of capital (debt repaid) and interest which is accrued on the outstanding debt. Therefore, we repay the capital in a shorter time and, in addition, the sum of interest is lower than in the case of equal installments.