File analysis fees, commission credit granting, management fee, commission for the anticipate payment, mortgage property tax assessment, management fee credit or non credit, commission of tracking credit , notification or non guarantee are only part of fees charged on a loan. Are different from bank to bank, but also from a loan to another within the same banking institutions, depending on the amount requested, guarantee, repayment period, or advance paid. It represents a total of about 40% from the cost of credit. Are hard to detect, initial offers including only in some cases these costs. Can be derived as a difference between the initial purchaser and effective annual interest rate. We recognize that every bank has to gain from business that has set it up. That’s why they made the interest and bank fees. Not only that the bank must win, but must have almost zero risk. So were invented insurance policies, the financial risk of non-payment, the civil liability of life, own life insurance and, of course, ensuring the building. Although we agree with the laws of the market, we must stress that the risks, fees and credit interest rates are still costs that hit the bank customer’s shoulder.
If interest has always been regarded as a mandatory cost of any type of loan, and it was 
always the reference point chosen by any customer, currently, in the case of loans for housing, this is no longer valid. The smallest interest rate announced by a bank it does not mean it is the cheapest loan. On the contrary, we have cases where loans with the lowest interest rates in the market come to have an effective annual interest rate of over 12%, so an extra 5% per year added to the bank base rate. Even though, if long-term credit, the law did not impose calculating the annual percentage rate (APR), such an exercise is very useful to be able to really choose the cheapest loan.
Although banks are required to display the effective annual interest rate (APR). Even in that case of knowing the APR, you still cannot have a complete picture of the final cost. That’s because banks resort to various tricks, so-called marketing strategy that often dazzled the customers. One of these methods is announcing a promotional interest for one-two years, but return to an interest “market” in the rest of the period. In these conditions it is difficult to have a picture of the total amount of payment. There are common to all bank fees and specific fees. Some perceive the beginning of the credit, others passing through the filter of marketing and get the bill only after one or two years of paying commissions .But they are costs that don’t appear on any list such as account opening fee or commission for withdrawing money, which reach up to 1% of the amount paid
Benefits of displaying annual interest rate
Both traders, as well as representatives of banks say that the obligation to show the APR is an extremely convenient measure for customers. Because of this indicator, people can more easily compare offers banks, because now they know exactly what is the real cost of credit. And for sure they will choose the most advantageous offer.
Disadvantages of displaying annual interest rate
While most networks that practice sales system on rates rushed to comply with the law, the rules anxiety on their heads. Interest may be confused by the effective annual interest applied to clients with balance, which can affect sales. But the difference between them is extremely high. APR includes, besides interest applied to the balance, and those fees, which until now were hidden.
