Loans to do works at home
Did you know that we spend an average of € 7,000 a year to make reforms in our home? Even less expensive jobs, such as some carpentry repair or painting the house, can already cost us approximately € 3,000.
And there are few users who choose to apply for a loan to meet these expenses. Especially when they find reforms that were not planned but that become urgent. For example update the bathroom or reform the pipes.
What should I look for when hiring a loan to do works at home?
So that this project in your home is not too expensive, it is best to buy several different loans and find the most interesting one for our case. Therefore, from Pointed Credit we advise you that whenever you look for a financial alternative, take a look at the following elements:
Check the APR
Many financial institutions choose to advertise their loans talking about the TIN or Nominal Interest Rate. However, this information is not enough or true to know how much a loan will cost us. In the TIN only the interests of said product are reflected but not the rest of the expenses associated with it. As for example the possible commissions or the payment of related products.
To truly know how much we are going to spend on a loan we have to take a look at the Real APR or Annual Equivalent Rate.
If there are linked products
Many banks offer very low interest but in exchange for hiring other related products. This can be a real trap for our pocket. Since these products include an extra expense that we may not be interested in adopting. For example, in the case of mortgages, it is quite frequent to force the client to take out home insurance with them. Alleging that after all they will have to take one and thus the interests go down. However, these insurances are not usually very cover or very suitable for the client.
So you know, check if there are linked products and what cost to accept them. Are you really worth lowering interest in return?
Check if the loan conditions are flexible
It is clear that when we acquire a loan both the company that offers it to us and we perform a calculation to ensure that we can pay it in the agreed monthly installments. However, it is also important to keep in mind that with the passing of the years unforeseen events may arise that prevent us from complying with these payments. Hence, it is interesting to check the flexibility offered by the lender in question. Both in terms of deadlines, and the possibility of enjoying a lack.
In the case of Point Credit we can offer you a deficiency during the first year so that you only pay interest.