November 29, 2021
Updated on 11/27/2021 19:22
This Bank is it better for me to apply for a mortgage or a car loan? If you are planning to acquire financial productIt is important that you compare what each entity is offering so that you do not have any surprises or financial problems later.
MORE INFORMATION: Find out how to read your credit card statement
In the country, there are more than 50 financial entities including banks, savings banks and companies that offer different types of products with a wide range of offers and advantages that you should choose according to your needs.
“When you acquire a financial product, which is a relevant acquisition in your life, it is always important to know whether it matches your income level in order to meet the obligations associated with the product. It is essential to make a decision according to your needs and which satisfies them ”, says Bárbara Castro, professor at Pacifico Business School.
The specialist indicates that it is important for people to educate themselves and visit various entities before purchasing a product so that they can analyze the most practical. He stresses that it is essential that they look at the annual effective rate which, unlike the interest rate, encompasses all costs associated with financial products.
HOW TO COMPARE THE PRODUCTS OF A FINANCIAL INSTITUTION WITH OTHERS?
The considerations depend on the product you are purchasing:
PERSONAL LOANS, MORTGAGES, VEHICLES AND MYPES
- Compare loan rates: it is important to know the effective annual rate (TCEA) and for this you can go to Compare the deadlines and SBS.
- Evaluate whether it is practical to take out insurance to protect property, such as the vehicle, and endorse it with the financial institution. In this case, it must be taken into account that the rider will be made annually during the term of the credit.
- It is necessary to know the annual effective cost rate (TCEA) which includes the additional costs at the ordinary interest rate. Although TCEA involves a number of assumptions, it is a first indicator of comparison to take the financial product.
- Analyze and compare the cost of the membership commission for the cards and ask the police to exempt you from this charge.
- Analyze the services and benefits provided by the membership fee and determine if they particularly generate value for me, such as loyalty programs offered by cards (miles, points, etc.)
- The promotions and discounts they offer for consumption. For example, interest-free charges or discounts at establishments such as restaurants.
- Analyze the type of insurance coverage offered by credit cards.
- Check whether in the app they have the option to block the availability of cash and purchases abroad.
To buy the convenience of one account or another, it is important:
- Check if they charge maintenance: if they have maintenance fees, a minimum balance should be maintained.
- Find out about the number of free transactions they have at the teller: if there are many over the counter transactions, it is advisable to choose an entity with the highest number of free transactions.
- What types of transactions are counted in these transactions without fees, only withdrawals or also deposits?
- Ask if the entity’s automatic teller machines are on public roads or within establishments: depending on the location, this may restrict the hours of availability by the user.
- Check if there is a maintenance fee for an additional debit card
- Compare the cost of interbank transfers, and from what amount. It should be taken into account that with the increase in digital consumption, the cost of transfers is relevant when choosing a financial institution.
- Request free trades without paying a commission.
- See what types of transactions count as free, only withdrawals or also deposits? Ask if there is a maintenance cost.
- General recommendation: Consumptions of frequent use (supermarkets, schools, payment of private insurance, among others) should not be financed by the TC. Only one paid option.
- You can take advantage of the promotions and discounts they offer for consumption. For example, interest-free fees or discounts at establishments.