At every step, we see various bank ads. They reach us from the TV screens, from the computer monitor, or from newspapers. Usually, banks advertise their loans and credits, because on these products, they earn the most. As it is easy to guess, since most banks offer us their credit products, they must fight for clients. And it is best to make the application in the given institution the lowest price possible. Therefore, it is with low costs that banks tempt us. But you can not cut costs indefinitely, because in the end banks will not make money on loans. That is why the banks found a way to convince us to apply for a loan or a loan. They simply show us in advertisements only what they want to show us and what is meant to make the possible client tempted by their offer. So what do you pay attention to when viewing bank ads?
The banks in advertisements want to prove to us, first of all, that their offer is the cheapest. Therefore, they will tell us that their loan has an exceptionally low interest rate. Of course, they will show us this in the form of a low installment, which we will have to give back to the bank. And many people unfortunately do not pay attention to anything else, because they think that this offer is the cheapest compared to others. But it may turn out that the lowered interest rates banks “make up” by raising the commission. Or by offering a lower interest rate on the condition that you apply for a credit card that generates some costs for us. We can also turn it around. The bank may advertise its product, showing potential customers, for example, no commission. But it can raise the interest rate a bit. And so you can speak in several variants. Also watch out for “promotions”, which unfortunately do not last too long. For example, a bank may advertise a low interest rate, or it will only last for three months. And other similar tricks. Of course, there is a way you can easily compare the offers of banks, which customers often forget. And this is the APRC, which is the Actual Annual Interest Rate. This indicator shows us the total cost we have to bear to the lender by repaying the debt. Banks usually show us this indicator with a small print, just so that customers do not pay attention to it. And it’s worth it, because it’s the best way to find the cheapest loan.
Banks can also fight for clients in a different way. They can offer various types of “free” gifts. But we are perfectly aware that there is nothing in life for free. So like a free gift, the bank will compensate for the increased commission or higher interest rate.
The most important thing in choosing the best offer should be common sense. Thanks to this, we will not be able to “catch” the trap of the bank and we will not overpay for borrowed money.