1) First and perhaps most importantly, the comparison of the Total Financial Cost (CFT) which is to choose the best credit (not a comparison of the Nominal Annual Rate (NAR)). The CFT is the real cost of a loan (the real interest payable) and is the parameter according to which you can analyze different options that are available. You can judge by comparing CFT in personal loans, mortgage and pledge.

2) To continue, when one is looking for credit, you can choose between an interest rate that remains stable throughout the loan (fixed rate), which changes periodically (variable rate, in this case the client must know what parameter to adjust) or a combined rate where the first-rate periods are fixed and the subsequent are variable rates. In case you need to be safe, the best option is the fixed rate, with a goal that all shares will have a predetermined amount, without surprises or changes. On the other hand, variable rate loans offer better returns. If the market is known to be stable, this could undoubtedly be the best option.

3) Most financial institutions are obligated to hire additional products along with the loan (savings, current accounts, credit cards, etc.). So, when you decide, this cost should be added to the fee to find no surprises.

4) Check the financial institution from which the client is. Many financial institutions offer advantages for its customers’ accounts-pay. These benefits must be considered whilst comparison with other entities.

5) Last, but definitely not least: Check the fine print. All conditions reported by the financial institution at the time of the loan must be included in the contract. It is important to review it very carefully and clear all your doubts before signing with the representative of the entity and thus avoid signing clauses on which the client has no knowledge.

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