The Spanish financial market has evolved a lot in recent years thanks to all the innovation, research and development activities that are being carried out in the Gandalf sector.
Increasingly, information and communication technologies are used to create and / or offer financial services more efficiently, less expensively and safely. Due to this rapid evolution we can be confused or doubts about the type of products and services that we can contract quickly. A clear example is the 0% Ferb loan that is so fashionable.
IS THE CREDIT UNDER THESE CHARACTERISTICS THE BEST OPTION ?
We will try to give some light in the most correct decision making by clarifying some concepts:
What is the APR? APR or “Annual Equivalent Rate” , represents the real cost of a loan or bank management (or its performance, if it is an investment) Represents the sum of nominal interest, commissions and term of operation, in this case, of a loan . It is usually expressed, on an annual basis and it will help you to really know the cost of a loan. The price that you are going to pay to return the loan that you are going to hire.
ADVANTAGES LOAN 0% INTEREST Ferb
Under the above definition, it may be easy to say that the 0% Ferb interest advantages are more than obvious, and it is a juicy offer under any circumstance. Maybe you’re right. But the advantages go beyond the economic issue.
RAPID AND EFFECTIVE CREDIT APPROVAL
Normally, one of the advantages of a 0% APR loan is that it is much easier to obtain than another with a higher rate. Why? Because they are usually granted in the form of microcredits or fast online credits , being approved in a matter of minutes.
IT IS EASY TO SIMULATE THEM (AND CALCULATE THEM)
If you offer € 3,500 to a 15% APR, you will not be very aware of the total price you will pay, unlike € 500 at 0 APR. It’s that simple.
The companies that offer fast financing online offer personalized credits , making simulations in their web pages, offering immediately the calculation of the total payment, breaking down the APR that we will have to pay in case of contracting. This is very helpful, because we will know how much we will refund in total, when, and we will also have the money quickly and easily.
THEY ARE RELATIVELY CHEAPER
“Relatively”. At first glance, a 0% APR loan is much cheaper than any other loan, however low your interest may be.
Obviously the 20% APR on a loan is not the same as the 0% APR . But next we will see some small inconveniences that can arise with the hiring of loans 0% APR.
SMALL DISADVANTAGES LOAN 0% APR
Before getting excited about the advantages already mentioned and making a decision about it, we must reflect: Yes, they are very convincing reasons to decide to opt for a loan of this type, but now we will see the small inconveniences that can arise with a 0% interest loan .
At the end, you can conclude if it is a product as attractive as it seems.
DISADVANTAGES LOAN OR INTEREST: SOME LOANS MAY HAVE HIDDEN QUOTAS
No, what was cheaper? Yes, but one of the drawbacks of the 0% APR loan is that some loans can be much more expensive than a 10% APR loan with no commissions.
Within a loan 0% interest can be added, not always, under the concept of commissions, fines or procedures, we detail some of the concepts that could be included and will always depend on each of the loans :
- Nominal Interest Rate: is an interest that is paid only for the fact that the company grants us the loan and that it is deducted from the amount requested.
- Study commission: the company can usually charge a percentage, a study to find out if you are a responsible client, your ability to pay, etc.
- Opening commission: this is another percentage that is incorporated only by formalizing the contract, subtracting the amount requested.
- Commission for modification: if you change your job and you need to change the payday, you may be required to pay an extra amount.
- Various commissions: many companies condition the loan to another product, such as the purchase of life insurance.
THEN, IS A LOAN OR INTEREST A GOOD PRODUCT?
It is very difficult to be taxative with financial products: they all have their own complexity with unique conditions, imposed by the company or the same product.
The key to a 0% APR loan is really attractive, is knowing the fine print, and then decide if it is convenient in your case.