Whether there are credits “ free “?
are so heated Nothing by heart of the economical person as the credit with a zero rate. Even if this person perfectly understands that “ zero “ the credits do not happen: who - who, and bankers will never work to themselves at a loss, for them money is goods. And, as we know, it is necessary to pay for goods.
Banks as sellers of money, advertize the goods too, as well as sellers of any other goods. And their goods from the point of view of the buyer have to be as much as possible qualitative, convenient and available. And inexpensive. But inexpensive money does not exist.
It is considered that the effective rate on a consumer loan (that is a rate which already included all commissions and additional expenses) cannot be less than 30 annual interest rates. As a rule, it fluctuates within 40 - 50 percent. You know many banks, consultants whom, without reminder and additional requests from the buyer or the borrower tell about all “ undercurrents “ and credit subtleties, additional payments and commissions?
Naturally, nobody will frighten the buyer of money (that is the borrower - and whom to other he is how not the buyer of money?) in such huge percent. It is much simpler to declare the minimum credit rate or even about the zero credit is all the same what to declare that money “ are on sale “ free of charge. But in addition to the credit it is necessary to incur some expenses on its registration.
Such “ insignificant “ can be expenses:
1. Registration commission and issuance of credit.
As a rule, such commission is one-time - but it is its only plus. And this “ trifle “ about 20 - 25 percent from credit cost can reach.
2. Credit service charges. by
raises every time when you pay for the credit. Makes 1 - 3 percent from the credit sum. If you took “ interest-free “ also you pay the credit for a year monthly, by means of credit service charges you pay another 12 - 36 percent from the credit sum. Here to you and zero rate.
3. Substitution of concepts - for the credits with minimum, but not “ zero “ rates.
At the monthly service commission its percent can calculate from the cost of all credit, but not from the rest. That is even at the last payment when it is necessary to pay, for example, from the credit for the sum of 1000 dollars, one-percentage charge for service of the credit not 1 dollar, but 10 can make 100 dollars.
4. Annuity - for the credits with minimum, but not “ zero “ rates.
Annuity - such form of payment of the credit when the debt is satisfied by equal parts and percent also are on all body of the credit, but not for the rest. At the long term of payments and an identical interest rate (even if also the most minimum) such form of the credit can be 1,5 times more expensive to your purse.
5. Card credits.
Cashing in of the credit through a card can cost you in 1 - 3 percent from an amount of payment. Even in that case when you got a credit card free of charge and does not demand any additional expenses. There`s nothing to be done, service of ATMs demands expenses too, and, as a rule, these expenses are withdrawn from a pocket of the user (borrower), but not the owner of this big iron box, with lots of money (bank).
6. Insurance. If the credit is taken
for a large sum, the bank can demand from you to insure the life or health. Perhaps, even in that insurance company, the owner or the shareholder of which he also is.
7. Contract with shop.
It is no secret that goods of the increased demand and production enjoying popularity in the market are not sold on credit at the zero rates. Or are on sale, but it is already a little at other price that the shop and bank could compensate the work. Or the goods lingered on the shelf a little and it it is necessary to sell quicker to release trading floor for another, more modern and bearing big profit goods.
So before to be delighted to such favorable offer as “ free “ the credit or the credit under the minimum interest rate, will be not superfluous to become interested in in all the commissions and additional payments and to summarize them - perhaps, results very much will surprise you.
If the person is not able to afford any goods for 100% of its cost - that as he is able to afford to buy the same goods at the price in 130 - 150%?