Which loan is best for me?

Which loan is best for me?

To know which loan is the ideal, it is important to define the use that will be given to the money. The type of loan to be requested and the specific entity where to request it will depend on this. If you have asked yourself the question " which loan is best for me ?", This post is of your interest.

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How to know which loan is best for me?

Loans are a good option to buy the car of your dreams, take a desired trip, take a master's degree, or simply to get out of a hurry. 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're applying for a car loan, consider these three lender options:

1- Car dealer

The loan option offered at the dealership itself can be 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 comprehensive insurance, among others. Many people choose this type of loan for the additional services, and not for the benefits of the loan.

2- Online loans

This type of loan adjusts 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 a value from € 10,000 to € 100,000, which facilitates the purchase of practically any model of car. On the other hand, this option is of interest to those who want to take out the 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 dealerships offer specific loans from banks, the latter thanks to agreements that exist between both. In this option, the amount of money of the loan is conditioned by the limit offered by the bank.

Factors that determine the ideal loan

There are some factors that must be considered when applying for a loan, the main ones to evaluate are TIN, APR and the 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, APR is the effective annual rate, this is responsible for including the nominal interest rate, commissions and the term of the operation, that is, all loan expenses. It is important to look at these two factors, especially the APR, since it has the greatest influence on the overall costs of the loan.

On the other hand, the payment time is a determining factor depending on the term chosen. When the term is longer, you end 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 is best for me ?

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