Choosing the best cash loan is not easy. Most customers go to the selected bank and sign the loan agreement under the influence of advertisements. Later it may turn out that this was not the best offer and monthly installments are higher than at another bank. This situation can be avoided. The ranking of cash loans compares the offers of all banks and helps to take advantage of the most advantageous offer.
How does the cash loan ranking work?
The ranking of cash loans is a tool that helps you choose the best bank offer. Financial analysts compare many parameters associated with a particular type of loan:
- loan amount,
- number of installments,
- interest rate,
- bank’s margin
- additional insurance.
See what calculators to use when choosing a cash loan.
APRC – shows the total percentage cost of the loan
All these elements make up the APRC, i.e. the Real Annual Interest Rate, which determines the real costs of the loan. The lower the APRC, the lower the cost of credit. Borrowers applying for a cash loan should take this indicator first into consideration before making their final decision.
For some people who suddenly need cash, costs are not the most important thing. When choosing a cash loan, they are primarily guided by the amount of installments that should not upset the balance of the household budget.
The ranking of cash loans allows you to choose the best offer also in this respect. All you have to do is compare the installment amount with the APRC and find the best offer, although the cost of the loan may be higher.
Also check the consumer loan ranking.
What else is important when choosing a cash loan
When applying for a cash loan, you should not only consider the lowest costs, but also the conditions for obtaining it. The creditworthiness and repayment history of credit will be decisive in this case.
Creditworthiness is the balance of income and costs of living and existing commitments. The balance must ensure that the loan can be repaid.
The customer’s credibility is demonstrated by his history in BIK and BIG, which present the history of repayments of previous liabilities. A positive story makes it much easier to get a cash loan.