The economic situation of families is better today than it was a few years ago, and many households reapply for personal loans to finance projects such as the purchase of a car or home renovation. Due to the qualitative improvement in demand, banks have increased their supply of consumer loans and many of them have even lowered the interest rate on their products to make them more attractive.

However, taking out a loan is still an expensive operation, so before doing so it is advisable to take certain precautions to avoid getting into excessive debt. Go for the online loans no credit check there now.

What to do before requesting a credit

Although contracting a personal loan involves having to face various costs (interest, commissions, etc.), it is possible to save a significant amount of money by taking into account several keys. From the comparator they recommend taking into account five aspects before contracting a consumer credit:

Analyze the repayment capacity: it is essential to assess whether sufficient regular income is received to pay the loan monthly payments throughout the repayment period.

Do not ask for more money than is strictly necessary: ​​the higher the amount requested, the more you must pay in interest, so it is convenient to ask for the least amount of money possible. In this sense, it is advisable to dedicate a part of the savings to pay for the project that you want to finance.

Compare several loans before opting for one: it is also important to compare the conditions of several loans to keep the cheapest offer.

Do not choose an excessively long term: it is rarely taken into account, but the repayment term is the factor that makes the price of personal loans more expensive. If it takes a long time to repay a credit, you will have to pay much more money in interest, so it is always advisable to repay a loan in a shorter term.

Read the credit agreement in depth: it seems like common sense, but there are not a few people who ignore the fine print and then find unpleasant surprises.

The APR, the best indicator to compare prices

One of the things that must be done before contracting a personal loan is to compare the conditions of several credits to know which one is the most convenient. To do this, several aspects must be taken into account: the amount and repayment period of each product, the requirements of the lender, the speed of the concession, the application process (whether it is online or not, for example), etc.

Of all the aspects that we can compare, the price is the one that will help us determine which the best personal loan is. There are several factors that can increase the cost of a credit, such as the nominal interest rate (TIN), commissions, related products, etc.

To find out what the real price of a loan is, it is best to look at its annual equivalent rate or APR, which includes both interest and commissions and other expenses, and read all the clauses of the contract to see what the additional expenses are, such as the cost of related products or possible payments to third parties.