In the past year, the borrowing spirit in Hungary has been unbroken: we have borrowed more than HUF 1,000 billion for various purposes. Most users are now aware that the best way to compare individual loans is to compare GHDs.
However, less so that WRLs may not necessarily include all the costs involved, or more precisely, they are not always included, and additional extras, convenience services, or even insurance that often do not increase WRLs are often “packaged” with loans, but for the borrower. This is especially true for loans offered to BAR listers , as they they have fewer borrowing opportunities than average clients, and are more easily led into unfavorable schemes.
Nonetheless, the APR is an important and useful indicator that greatly facilitates basic orientation, for example, helping you narrow your selection from eight to ten options to two or three offers, which we then examine in more detail. Important: GHD is always calculated based on start-up costs!
Credit for amenities
The APR also lacks the costs charged in the event of late repayment of the loan. Such extra costs are the interest on late payments and, in the event of long-term default, the recovery and cancellation fees. Often, the debtor is also charged if the representative of the financial institution comes in person , or even the cost of mail. We have already seen a 0% commodity loan with a default interest rate above 10% (of course, if we do not calculate the delay, then this is another good deal).
In addition to loans, some credit institutions also sell convenience services that do not include WRLs , but ultimately increase the burden on the customer. This type of solution is most often encountered with smaller unsecured loans and quick loans.
For example, within Provident’s home services, representatives of a financial institution go to the customer’s home , which greatly simplifies the process of borrowing, as we can arrange a review service in our home. In addition, being on the BAR list is not an obstacle to borrowing . However, home administration is not free, but it increases the cost – everyone has to decide for themselves the extra cost they offer.
What do you need to pay attention to?
Before choosing the right loan, it is advisable to compare the various offers, read the contracts, the small parts so that we can make a responsible decision with all the costs involved. We can also use the National Bank’s loan and lease selection program as a decision support tool. With a little research and advance information , we can save a huge amount, even hundreds of thousands , for the entire duration. Beyond this, all you have to do is select the most optimal offer for us and then carefully read the terms of the contract before signing.