Who really gets a loan? A bank should consider who can borrow money and not, and when it is borrowed. It can be difficult for us borrowers to find out in the jungle of loan offers. To make it easier to compare different offers, it is statutory that all lenders must state the effective interest rate on a loan.
They will usually have answers to these questions:
1. How safe is it that the loan will be repaid.
2. What should the loan be used for and how much of the value must be financed through a loan?
3. How much income is it likely that the borrower will have during the loan period? The banks prefer not to lend more than approx. 2.5-3 times gross annual salary.
4. What ability to save has the borrower shown in the past?
5. How well thought out is borrowed Did the borrower, for example, prepare a budget showing the ability to repay?
What does it usually cost to borrow?
Give yourself time. On the one hand to find the car, partly to the dealer can get a car. If you wait a few months or three, he can usually give a better price.Have the dealer send the quote on paper or email. So, you have more than just his words. Save money by renting your holiday car. No cost of wear and tear, make your car rental cheaper by renting than. Inheritance and Money Transfers Minimize Fees and Save Money.
It’s easier for someone to shop on a phone because you don’t feel like you’re wasting your time by letting a retailer that won’t give you a discount, you came for.
Don effective interest rate is what the loan actually costs us. The effective interest rate depends on the nominal interest rate (the interest rate the loan is based on), what fees we have to pay and how we pay the interest rate (down payment or arrears, monthly or annual).