Why should you make a comparison of interest rates? Today there are many products and it is necessary to know them to make better decisions. And it is that one of the fundamentals of financial education is always to compare, an action that will allow you to put on a balance the options to choose what suits you best.
For example, when you are looking for a personal loan, not comparing interest rates could cause you to end up paying more at the end of the loan than in other institutions, which will undoubtedly be a bad financial decision.
You should be very careful in this comparison exercise
Since on many occasions the published interest rates do not always turn out to be comparable, simply and simply because they refer to different periods: biweekly, monthly or yearly. You should also consider commissions for credit opening or administration, as well as in some cases the costs associated with a premium, which could distort the value of the total amount when comparing.
For you to make a better comparison, there is what we know as CAT or Total Annual Cost, which is an indicator that not only takes into account the interest rate, but also other types of financing costs. This indicator lets you know how much you will pay for the credit, since all credit grantors are required to indicate it.
Importance of comparing interest rates
According to the calculators of the Condusef, in an example where a user requires a payroll or personal credit for 50 thousand pesos, for a term of 36 months, a monthly periodicity and with an income of 15 thousand pesos, the rate Annual interest that could be paid in a financial institution could range from 21.60 to 50 percent.
On person-to-person loan platforms such as Good Finance, loans with rates from 8.90 percent to 28.90 percent are offered, which places it as a better competitive interest rate in Mexico.
The interest rate that will be applied
The interest rate that will be applied to you at Good Finance depends on your credit history, the better this is, the less you will pay, which is one of the great advantages of this P2P platform. The amount you will pay on interest will be directly related to your behavior as a payer, and will not be estimated from a general formula as most financial institutions use.
Besides that in Good Finance no commissions are disguised, there is nothing hidden, only the rate they charge is the one that will be established in your contract, according to your score, but in that sense the company is very clear, there is no commission extra.