The biggest mistake when borrowing!
Lots of people are borrowing nowadays, as we have come across such favorable loan rates for a long time. Many people are not careful enough about borrowing, so they make mistakes. But what is the biggest mistake when borrowing? The details will be revealed below! Before borrowing, it is a good idea to look carefully at the banks’ offers. The Sir Fritz Polly loan calculator can be a great solution. All you have to do is enter your information and the system will give you a list of financial institutions where you can get a loan. All you have to do is choose the best design.
Credit institutions often give preference to borrowers
Who undertake to become clients of the institution. When it comes to borrowing a larger amount, it is not a question of taking advantage of this discount, but the bank will encourage you to open a checking account with them, even for a small amount. The question then arises, is it really worth it?
The bank not only benefits from interest but also from various services (account management fee, card issuance fee, etc.). Therefore, it does not matter to the financial institution whether or not the applicant applies for a current account. If you take the opportunity, the bank will usually reward you with interest discounts.
For a large loan, it is worth switching to a bank
Even if you do not have a discount, but the interest rate is still lower. Unfortunately, this is not the case with the majority of the population. It is a bad habit for Hungarians to go to the bank holding the current account and take out a loan there. Therefore, it may be that the interest rates on new personal loans are far more expensive than the cheapest loans.
Since there are huge differences between banks, it is not a question of switching from one bank to another, as there are tens of thousands of repayers and millions of differences in total repayments. So it’s worth taking the time to look at the offers of several banks. Don’t just rely on your account manager’s bank.
It is very good for a credit institution to open a current account with a small personal borrower, but this is not mandatory. Here, too, the question arises whether it is worth borrowing a small amount from your own bank or choosing a better deal.
In case of a smaller amount of borrowing
Say 500 thousand HUF, the difference between the banks may be about 3 thousand HUF per month. This does not seem like a significant amount, but if you look at the amount paid out over a total term of 60 months, the difference is well over a hundred thousand. With a bad decision, you can lose almost 25-30% of the amount you take.
Conscious borrowing can save you a lot. The less conscious one is, the more vulnerable he is financially. Unfortunately, Hungarians are generally not well-informed in finance, so this can cause the most inconvenience when borrowing. Therefore, it is a good idea to be properly informed before borrowing. If you think you are not alone, seek the help of a specialist, as it turns out that with a badly chosen loan, you could lose hundreds of thousands or even millions of forints.