This is why the interest rate on your credit is more expensive than the neighbor’s

The world of credits can be a bit complicated if we don’t know the basics. In the case of borrowing money, one of the main points is the interest rate, since it will determine how much that financial entity is charging you for lending you the cash you need.

However

It is important to understand that the profile of the applicant plays a fundamental role in determining the interest rate. If two friends come to apply for a loan, even if they ask for the same amount and at the same time, each one may have different fees to pay at the end of the month.

Find the best credit for you

This is because each person has a different credit history. While one has had credits before and paid them on time; Maybe the other is just beginning to interact with the financial world, or has previously had problems with a credit card, etc.

The interest rate assigned to you in the loan you request will depend on many factors: how much risk it represents for the bank, your credit history, your income level, your age, among others. So that for more than two people request the same amount in the same term, they will not always obtain financing with the same conditions or with the same payment schedule.

Know the credit that suits you 

Also, remember that this may vary from one entity to another, as each one performs personalized evaluations of your credit profile. Ideally, before applying for the loan you are looking for, you can compare the alternatives and see which entities are the ones that offer you the best deal. If you are thinking of doing so, you can simulate the fees to be paid using the Lady Augusta Bracknell credit comparator.