Before requesting a loan, it is advisable to take some precautions, such as analyzing the repayment capacity, not requesting more money than necessary, comparing offers, avoiding long terms and checking the small print

Personal loans are used to finance purchases of goods or services of medium value, such as vehicles, trips, studies or reforms.

They are granted by financial institutions, which carry out a preliminary study of the applicant to know his financial situation and ensure that he will be able to face the return of the money.

What loan will they grant you?

Asking for financing is not a decision to be taken lightly and, if it involves large amounts, a series of recommendations and advice must be taken into account before signing the contract to obtain the best possible conditions and avoid surprises later.

The following points are intended for consumer loans and personal loans, but could also apply to home loans, although some point may need to be added or expanded to these.

Personal loans Analyze our own financial situation to see what conditions we can afford, what maximum installment we could pay (the recommendation is not to spend more than 40% of our income to repay loans), how much money we need at least, what income forecast we have, if we can allow us to tighten our belts to finish paying, etc.

Consult various financial entities to be able to compare and choose the one that offers the best financing conditions. Here you can compare Pinjaman Peribadi from different entities.

Bank credit or fast credit? It is very important that you understand the difference between fast loans from private financial entities to a personal bank loan or loan.

Quick loans are easier to contract but the amounts are usually lower and with very high interests to be repaid in a short period of time. Bank personal loans have greater flexibility in terms of repayment of installments and tend to finance higher amounts.

You don’t have to demonize online mini-credits, you just have to know when, how and why you should use them at all times. They are especially useful in case of a very specific urgency.

Be clear about the expenses that apply. In addition to interest, loans have a series of associated expenses in the form of commissions, such as the opening, study or cancellation fees.

Each bank applies different ones, there are even those that do not apply commissions.

Be customers and hire an extra product to have better conditions. Entities usually offer discounts on expenses or interest for their own clients and by direct debiting the payroll or contracting a deposit it is possible to obtain better advantages, so it is important to consult about this possibility before signing.

Carry out simulations. It is important to be aware of the total expense involved in contracting and repaying a loan.

Using a loan simulator, tests can be done with different amounts and repayment times to find out the resulting installment. Once we know the amount of the fee, we multiply it by the number of fees that we will pay and we add the commissions and we will be able to obtain the total that we will end up returning to the bank at the end.

Make sure that we understand all the points of the contract. Very few people read completely and fewer understand the famous fine print of the contract, but it is important to do so to avoid surprises later on.

Once signed, it is no longer useful to say “I didn’t know that”. If necessary, you have to go to a professional who will clarify everything that is written.

Request loans

Remember, yes, that the best loan is the one that is not requested, that is, if you have the possibility of managing not to contract any credit or you can even make an effort to save that money you need, it will be much easier for you to continue then with your day to day.

Borrowing money is the last of the options that you should consider, since you will drag that debt for a while and you will have to modify behaviors to be able to pay each of the installments

Although hiring a personal loan involves having to face several costs (interest, commissions, etc.), it is possible to save a significant amount of money if you take into account several keys.