When we intend to borrow in a bank with a cash loan, the first criterion we take into account is the amount of the installment, if any. It usually determines our choice. It is important for us that the loan repayment allows us to pay the monthly budget and does not cause a loss of financial liquidity, which in turn could result in further loans. Therefore, we often choose the option with the longest possible loan term and with the lowest installment. We forget, however, that in such a case the total cost of credit is very high and may amount to even as much as we borrowed. Then it turns out that the seemingly cheap cash loan turns out to be quite expensive. To avoid such situations, we should have at least minimal knowledge about how a cash loan works, what its cost is and what alternatives we have.
Cheap cash loan – How do you find it?
To find a really cheap cash loan in the maze of offers, we’ll have to spend a lot of time analyzing all offers or use a convenient credit comparison tool. Such comparison websites are publicly available on many websites and we will need a few minutes to find them. Just enter “credit compare” or “credit rank” in the search engine. We will receive a lot of results related to various types of loans, including those that interest us the most, i.e. cash loans. We will receive all necessary information there, such as the total cost of the loan, the APRC amount and what interests us the most, i.e. the amount monthly installment. To determine which loan is the cheapest, we will need the most information about the total cost of the loan. Then we will be able to realistically assess which credit option is the cheapest and most favorable for us. By changing the data on the repayment length, we can easily see how much the cost of the loan changes. If the repayment is set for a maximum period of 120 installments, it turns out that the total cost almost double the value of the loan.
Who is cheap cash loan for?
Anyone who has a valid ID card can take out a cash loan. This is the basic condition. Gaining age and Polish citizenship allows us to take advantage of banks’ offer for cash loans. The rest depends on our financial capabilities and the bank’s decision. The bank will first assess our creditworthiness on the basis of data provided by us and analysis of certificates from the workplace. In addition to how much and where we earn, it will also be important how much we spend. So we will have to provide all our fixed monthly expenses. Calculating how much is left for us, the bank will know whether we can afford another commitment. For small amounts, achieving creditworthiness will be quite easy. Things can get complicated with larger amounts or, for example, in the case of mortgage loans, where installments can amount to several thousand zlotys. If we have had any delay in repayment over the last few years, we can also forget about a positive credit decision.
What if the bank’s negative decision?
If the bank refuses us, we have several options to choose from. We can apply for a smaller loan amount or spread it over a longer period of time to lower the installment. We can also get a handy repayment from a third party. The last possible option is to apply to a loan company. The loans they offer are more easily available because the rules for granting them are subject to the Civil Code, and not as in the case of banks under the Banking Act. Thanks to this, obtaining them is not so restrictive. We can receive a small loan without the need to submit any certificates and without checking the credit history in BIK. All you need is an ID card. The only downside is that the loans are much higher than bank loans, so in the end this is not a very financially attractive offer. This is actually the last resort if we need cash and we have met with the bank’s refusal.
Cancellation of credit or loan
Remember that both in the case of credit and loan we can resign from it within 14 days from the date of the contract. All you have to do is send a letter to the lender. The content of the letter only informs about the resignation of the contract and we do not have to provide any reasons for our decision. There is one condition: Within 30 days we must return the entire amount borrowed to the account of the lender. We will not have to make any additional payments.