Find out how to know which financial institution is best for you

That Bank Is it better for me when applying for a mortgage or vehicle loan? If you are thinking of acquiring some financial productIt is important that you compare what each entity offers so that later you do not get surprises or have problems with your finances.

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 various types of products with a wide range of offers and benefits that you must 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 if it matches your income level in order to meet the obligations associated with the product. It is vitally important to make a decision according to your needs and that satisfies them “, indicates Bárbara Castro, professor at Pacifico Business School.

The specialist indicates that it is important for people to inform themselves and go to various entities before purchasing a product so that they can analyze the most convenient. It highlights that it is essential that they look at the annual effective rate that, unlike the interest rate, encompasses all the costs that are 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, MORTGAGE, VEHICULAR AND MYPES LOANS

• Compare loan rates: it is important to know the effective annual rate (TCEA) and for that you can go to Compare well and SBS delays.
• Evaluate whether it is convenient to contract an insurance to protect the property, such as the vehicle, and endorse it to the financial institution. In this case, it must be taken into account that the endorsement will be made annually during the credit period.

CREDIT CARD

• It is necessary to know the annual effective cost rate (TCEA) that includes the additional costs to the ordinary interest rate. While the 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 policies to exempt yourself from this charge.
• Analyze the services and benefits that are provided for the membership fee and determine if they particularly generate value for me, such as the loyalty programs offered by the cards (miles, points, etc.)
• The promotions and discounts they offer for consumption. For example, fees without interest or discounts in establishments such as restaurants.
• Analyze the type of insurance coverage that credit cards offer.
• Check if in the application they have the option to block the availability of cash and purchases abroad.

DEBIT

To buy the convenience of one account or another it is important:

• Check if they charge maintenance: if they have maintenance costs, a minimum balance must be maintained.
• Find out how many toll-free transactions they have at the counter: if there are many counter transactions, it is advisable to choose an entity with the highest number of toll-free transactions.
• What type of operations are accounted for in these operations free of cost, only withdrawals or also deposits?
• Ask if the entity’s ATMs are on public roads or within establishments: depending on the location, it can restrict the hours of availability by the user.
• Check if there is a maintenance charge for an additional debit card
• Compare the cost of interbank transfers, and from what amount. It must be taken into account that, with the increase in digital consumption, the cost of transfers is relevant when choosing a financial institution.
• Ask for free operations without paying commission.
• Consult what type of operations are counted as free of cost, only withdrawals or also deposits? Ask if there is a maintenance cost.

RECOMMENDATIONS

• General recommendation: Consumption of frequent use (supermarkets, schools, payment of private insurance, among others) should not be financed with TC. Only one-fee option.
• You can take advantage of the promotions and discounts that they offer for consumption. For example, installments without interest or discounts in establishments.