How to cheat banks. Widespread cheating banks in interest calculations and monthly commission

Banks in different ways to make money on loans. Necessary for them to final percentage is ensured not only dictated by the rate of credit and commissions, but more artful ways. In fact, it - cheating banks.

How to cheat banks in lending?

For example, a well-known bank fraud related to the full entanglement of the borrower on where there is interest on the balance of the debt, and where monthly comission fee (typically accrued to the original loan amount).

This is achieved by means of "word games." It has long been among some of the banks has become popular to dictate its terms to "mask", confusing the borrower.

For example:

"Rate: 0.9% *"
and at the end of advertising booklet transcript barely noticeable fine print "* per month of the amount of credit."

It would seem to be multiplied by 12 - and get the annual rate of 10.8% ... NO!
Please do not fall for the deception of the bank! After all, we know how it should go charging of interest on the loan - for the remainder of the debt, and not on the original amount of the loan each month.

In this case, the bank simply replaced the term "monthly fee" to "rate per month." Rightly or not - the second question. Since such descriptions adorn already from several banks, then they legally protect themselves somehow. And we do not have to care. We just need to calculate how much the loan is "worth" in fact.

Under these conditions "rate 0.9% *" consider a loan of $ 20 000 for a term of 5 years. Ie at 0% APR, with monthly fees 0.9% of the original loan amount. By using the Excel RATE (more about this feature here), we determine the effective interest rate loan (the full value of the loan) - 18.50%. And it is not 10.8%. The numbers speak convincingly.

But on the final results of this is more or less harmless example of how deceiving banks.

But drugyo example. Who would have guessed that in the phrase of one of the largest Russian banks' rate of 2% per month, "hiding the real annual rate of more than 40%? And this is without a commission!

It's simple. It turns out that the bank offered a month of 2% of the original loan amount, ie essentially again dealing with the same bank fraud - "replacement" classic interest rate loans to the percentage monthly fee.

Considering, for example, a 2-year loan for $ 10 000 with the help of RATE, get the value of the effective rate of 40.88%!
Imagine how clients of this bank is perplexed. You bet! Not every time the bet "2% per month," so much has a pocket ... And many of them really believe that "honest" loans at 2%. Ie people often do not even see how to cheat banks!



However, not only monthly commission may enter your expenses. Today, banks often earn well in insurance, which impose when granting loans. And your insurance costs should also be taken into account when calculating the effective interest rate (the full value of the loan). In addition, there are loans with variable rates and differential method of amortization (when it was returned to duty in equal parts, and not the total monthly payment). In all these cases, the need for more detailed calculations.

In my work I use preprogrammed universal credit calculator that considers the full cost of the loan (effective rate), the overpayment, the amount of credit on income and other important parameters of credit on the basis of any initial conditions. It is very convenient to compare different banks. In the application of DVD-set 'Secrets favorable credit' I give a calculator for each type of loan.