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What criteria do I use to choose a loan? 

by Lisa Baker
When choosing a loan, whatever the type, mortgage, personal, commercial, it is necessary to take into account a series of elements to be able to compare some credits with others. 
  • Interest rate : we must identify if the interest rate they offer us is fixed, variable or mixed. 
  • Credit term : you have to establish the time during which you want to manage your credit, since many times the interest rate is set based on it. 
  • Total Annual Cost (CAT) : considers both the initial interest rate and any other interest that is paid at the end of the loan term
  • Total amount to pay , taking into account the interest rate, commissions and extra costs. 
  • Forced times : check well the conditions in which they offer you the credit, since some institutions, after a certain period, decide to vary the conditions of the credit and the rate. 
  • Interest calculation : it is always cheaper to have a loan where the interest is calculated daily. 
  • Opening and management commissions .

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