Searching for a cash loan that is right for you, you have certainly encountered the situation that the enormity of various offers from the bank can effectively discourage you from continuing your search. In order not to get lost in the maze of offers, one should carefully check each offer and write its terms on the card, together with the amount of any credit installment, because it still has a decisive influence on our choice. This is completely unnecessary, since various cash loan comparison websites, for example mortgages, have been operating on the Internet for a long time. Cash loan comparison helps us reduce the time needed to find a favorable loan offer to an absolute minimum. Thanks to it, we are able to save up to several thousand USD in the case of larger loans. But even when we are looking for smaller loans, thanks to comparison websites, there will be several dozen or several hundred USD in our portfolio, which we can spend on other, more pleasant things than interest.
How does the cash loan comparison tool work?
The operation scheme of such a comparison tool is very simple. Banks provide all the conditions on which they grant cash loans to their clients. The comparison system downloads this information every day and saves it in its database. This ensures that this information is always up to date. When we enter the comparison website, a special form will be displayed at the very top of the page to enter the amount of the expected loan and the period in which we intend to pay it back. And that’s enough. Based on this data, the system will calculate the total cost of the loan and the amount of any installment in all banks in its database within a few seconds.
What’s more, if we want to shorten or extend the loan period and check how the installment will change then we can do it within the next few seconds. Thanks to this facility, we are able to compare the offers of all banks for different repayment periods within a few minutes. We can also observe how the total cost of the loan increases and the monthly installment decreases as the repayment time increases. Appropriate analysis of this data will allow us to choose the most suitable credit offer for us, thanks to which more money will remain in our portfolio.
The values provided by the calculators cannot, however, be binding when signing a loan agreement. They are only estimates and do not constitute an offer within the meaning of the law. We will receive accurate calculations only after submitting the online loan application on the bank’s website. If there were no major errors in the comparison system, these values will not be too different. The maximum difference may be a few USD in installments.
What makes up the total cost of the loan?
The total cost of the loan is expressed in the APRC value. The actual annual interest rate gives us an idea of how much our loan costs on an annual basis. The APRC consists of the bank’s margin, which must somehow earn on the fact that it provides us with a certain amount of money. Usually the margin is a few percent higher than deposits offered in the same bank. In the long run, the difference between these values is the earnings of banks. In addition, WIBOR is added to the margin. This is the rate at which banks borrow money. A commission for granting a loan is added to the whole. This is not a rule, as some banks give up this type of fee as part of various promotions. All these values combine into the overall cost of the loan. Depending on the repayment length, it can amount to over 50% of the loan value. Therefore, before choosing the right offer, it is worth looking at it carefully.
Cancellation of credit
However, if we accidentally chose the cash loan offer that was not very favorable for us, Polish law left us a certain gate. Within 14 days of signing or approving a loan agreement, we can withdraw from it without giving any reasons or incurring additional costs. The only condition is that the entire amount borrowed is returned within 30 days of delivery.
Is it worth using payday loans?
An interesting solution on the credit market are the so-called payday loan. If we intend to borrow a small amount of money but do not want to pay it back in monthly installments and pay back the whole amount at once, this offer is perfect. The more that for new customers such payday loans are completely free. This means that by borrowing USD 1,000 for a period of, for example, two months, if we transfer USD 1,000 to the account of the loan company before the repayment deadline, we will not incur any additional fees related to the loan.