If you have already decided to take a loan in one of the financial institutions, you are certainly the lucky owner of this car, which uses so little fuel outside built-up areas, or maybe you bought a trip on which you will take all your family. Either way, the cash loan you applied for has probably already been spent. Now you have a few months or even years of regular repayment, which may tarnish your household budget a bit. How can you effectively adjust your loan so that its repayment is painless for your wallet?
Many banks give their clients the option of choosing an installment payment form
Thanks to this, you can decide yourself if you prefer to transfer a fixed amount to your bank account every month, or you can organize everything so that its interest rate gradually decreases. Bank branches offer their clients fixed and decreasing installments. Click and check.
Many consumers do not know that there is a significant difference between the two forms of repayment. It is clear that banks prefer a fixed monthly amount that the customer must pay back. As a result, they earn much more, and the borrower has no idea that interest is much higher than when paying the decreasing installment. A client paying back loans in the form of fixed installments must take into account that the bank charges interest in a slightly different way. However, if the customer decides on decreasing installments, then the first installments will be several zlotys higher, after which they will gradually decrease. Here, the method of calculating interest is definitely more favorable for the consumer, and in order to see it for yourself, it is worth asking a bank employee to prepare a calculation of both forms of repayment of installments. Then it is easy to see what speaks in favor of decreasing installments.
It is worth noting that the bank can also suggest to its clients the most appropriate type of loan repayment. Fixed installments are recommended in particular for persons between 25 and 45 years old, with an established and stable professional position, where the risk of losing a job is low. The decreasing loan is dedicated to the elderly, after 45 years of age, who in a few years at a key moment of retirement may experience a sudden drop in monthly revenues, which can definitely affect the difficulties with repayment of the loan. The decreasing installment is therefore ideal for older people.
Which affects attractive credit terms
Banks show much greater confidence in their clients. So if you are a long-time consumer of one of the financial institutions, your credit history and income are known, then you have a much better chance of getting a good credit offer than a so-called street person. After all, it is worth checking the offers of other banks, where it may turn out that granting a loan not only lasts much, but its interest rate is much more attractive than at your bank. The attractiveness of the offer also includes the client’s age, professional position and regular income and movement on the savings account. Banks practice one of the sales methods called cross-selling, which involves selling several products to one customer. Be careful when making decisions, especially with credit. The bank may offer, for example, life insurance in exchange for a fee-free commission, where after careful checking it turns out that this insurance significantly exceeds the costs of the said commission. Internet comparison websites are a good place to check the credit offer of several banks at once.