For you to be able to know that you are doing business with the right bank, one method is to compare bank interest rate. Many people disregard interest rate thinking that it is normal to pay for interest. Yes it is but if truth be told, there are many banks that implement high interest rate – higher than what is the normal rate and this will always lead to more debt. Remember, you are force to take a loan because you are in need of instant cash and the last thing you want to do is to pay for huge interest rate. Did you know that many people have neck debt high not because of their loan debt but because of their interest rate that keeps on growing?
Yes it is true. If you don’t take time to compare bank interest rate, you will be shocked at the rate you will be paying. So, how to compare? Here’s how:
- Determined what the bank offers in terms of interest rate. There are two different types of interest rate – fixed rate and variable rate. Fixed rate are those interest rates that stays the same all throughout the whole duration of your loan. Variable rate on the other hand changes every time over the entire duration of the loan and that will depend on the bank. If you want to make sure that you have the budget and the resources for paying for the interest rate, choose bank that offers fixed interest rate. However, if you have plans to make another huge loan, choosing a variable interest rate is the best for you.
- Compare. If you are still having doubts on which rate you should choose, try to compare the interest rate. Get the annual percentage rates (annual) of the loan that caught your attention. Afterwards, determine which percentage is lower and choose that one.