Based on this data, the online credit calculator will display all loan offers from banking and non-banking companies in a clear comparison. The right choice of the best and best loan will be just a few clicks away.
For a representative example, we compare 2 loans – bank and non-bank. Both loans will be in the amount of USD 100,000 – for example, Lite bank Loan and RegU Credit Flexible Loan will be used.
Lite bank offers its loan online at 4.9% and is one of the cheaper consumer loans on the market. RegU Credit with Flexible Loan offers 13.88% interest.
Although interest is more than twice as large, its size still keeps moving in single digits. Smaller loans (microloans or SMS loans) have interest and the APRC is so high that it often doesn’t even mention it. The figures are hundreds of thousands of percent a year.
The table shows that for an Lite bank bank loan, you pay USD 5,183.86, while for a RegU Credit non-bank loan, you overpay USD 15,094.91. The graphs below show the difference between the ratio of installments and interest paid:
The loan calculator only counts on interest, not on the APR, which includes all fees associated with the loan. In this respect, non-bank loans would be even worse as they often involve high fees.
How to choose the right loan?
To help you choose, we offer some useful tips that are generally applicable to most cases. Credit is a serious commitment and as such should be taken. It pays to keep in mind when choosing a loan from a credit calculator.
Do not borrow more than you need.
The amount lent should cover only the transaction for which savings are not sufficient. Borrowing a few thousand extra for something unnecessary is not worth it. The higher the debt, the more money you overpay and the longer the loan repays.
Try to pay as much as possible from savings.
The more you can pay back on savings, the better. One does not have to borrow the whole amount and therefore does not have to overpay the bank.
Compare APR rather than interest.
APR means the annual percentage rate of charge. The APRC, unlike the interest rate, includes all fees associated with the loan. Although the interest may be lower for a loan, but if there is a fee for management or negotiation, you will spend more on it for a year than you would spend on a loan with a higher interest rate.
Do not borrow money unnecessary things.
If this is not really necessary, try to avoid debt. No one can predict the future, and what now appears to be a relatively safe loan for uselessness may become a nightmare in the future.
For small amounts, try alternatives.
Rather than taking a loan for a few thousand, it is better to try to apply for a small loan to someone from your family or friends. It is definitely a more sensible solution than borrowing with a microloan or an SMS loan, which these sums often offer.
Make sure you borrow from a proven provider.
Rather than for individual banks, this advice applies to non-banking companies. There are many on the market and not all of them “play fair”.
It is best to read reviews of people on unbiased sites (i.e., never published directly on the provider’s site), social networks and company profiles right there may also be appropriate.
Solve any problems with the loan immediately.
If you find yourself in a position where you are unable to repay loans, report this immediately to your bank. Most often in such a case, a repayment schedule is arranged or temporarily postponed. Definitely avoid rash steps like arranging other loans to repay the current ones.