Requesting financing is not an easy task. There are many variables that we must take into account before choosing between the best personal loans and many times, given the number of offers on the market, choosing can become an impossible task. Knowing what are the factors that most influence consumer credit and what is essential to ask will get the best loans in the market. Bad credit loans with guaranteed approval are some of the best types of loans available in the market.
The most important factors of personal loans
The price of personal loans depends on a wide variety of factors that directly or indirectly influence their costs. To know what we are facing, before deciding on one or the other, we must look at these 4 variables that will allow us to know which of all personal loans is the cheapest.
1.- The interests
It is the factor that everyone takes into account, however, we must take special care to look at the APR (Annual Equivalent Rate) and not only in the TIN (Nominal Interest Rate) since the first will indicate the effective cost of credit, including both interest and commissions. This is why many times a loan may seem cheap because your TIN is very low, but by having additional fees, your APR will be higher.
2.- The commissions
Its price is included in the APR, they are expenses that we must pay to the entity to be able to access personal loans. The most common commissions are study and opening. Luckily, we can currently find a large number of personal loans without commissions such as the ING Orange Loan, with which we can get up to € 40,000 to 6.95% (7.18% APR) without additional fees or paperwork.
3.- The linked products
It is a factor that we must take into account because its cost is not reflected in the APR. These are financial products that we must hire to be able to access personal loans. Some links have additional costs, such as contracting insurance or using credit cards, resulting in an indirect increase in the cost of the loan. However, other links are completely free, such as direct debit or receipts.
The Personal Open Loan requires us to direct our payroll and three monthly receipts to access the financing we need, links at no additional cost and, in addition, in return it offers us a reduction in interest, so that by complying with these free links we can access up to € 18,000 to 8.50% (9.76% APR, since it has an opening commission of 2%)
4.- The reimbursement period
The time it takes to repay personal loans greatly influences the cost of credit. The longer the repayment period, the more expensive the financing we request.