To know which loan is ideal, it is important to define the use that will be given to the money. This will depend on the type of loan to be requested and the specific entity where to apply. If you have asked yourself the question “which loan suits me best?”, This post is of interest to you.
How to know which loan suits me best?
Loans are a good option to buy the car of your dreams, make a desired trip, take a master’s degree, or just to get out of trouble. Currently the loan market is very large, so it is recommended to examine all possible options. Below we show an example of the options that exist to acquire a car through a loan.
If you are going to apply for a loan to buy a car, consider these three options of lenders:
1- Car dealer
The loan option offered at the dealership itself can become very basic. This is due to the added value they offer and are the additional services. An example of this would be: maintenance services and all-risk insurance, among others. Many people opt for this type of loan for additional services, and not for loan benefits.
2- Online Loans
This type of loan fits very well to the needs of each client, since it has a wide range of options. The loans that are in the market are around USD 10,000 to USD 100,000, which facilitates the purchase of virtually any car model. On the other hand, this option is of interest to those who want to take out insurance on their own, and do not want additional maintenance when buying a car.
3- Bank loans or credits
The most classic way to request money is through a bank. In banks you can find specific loans for the purchase of vehicles, and sometimes dealers offer specific loans from banks, the latter thanks to agreements that exist between the two. In this option, the amount of loan money is conditioned by the limit offered by the bank.
Factors that determine the ideal loan
There are some factors that should be considered when applying for a loan, the main ones to evaluate are TIN, APR and payment time.
The TIN is the nominal interest rate, which indicates the interest that must be paid at the end of each year. For its part TAE is the effective annual rate, this is responsible for including the nominal interest rate, commissions and the term of the operation, that is, all the expenses of the loan. It is important to look at these two factors, especially the APR, since it is the one that has the greatest influence on the general expenses of the loan.
On the other hand, payment time is a determining factor depending on the term chosen. When the term is longer, it ends up paying much more money than requested. Therefore, at Ideal Loans, we always evaluate the best options to help you answer the question, which loan suits me best?