Getting extra cash in a pinch can be useful in many people’s financial lives. It is difficult to predict, for example, when the car may break down, the renovation of the house does not move, unexpected medical expenses arise, the monthly payment of the child’s school is up. delayed or the life of the credit card keeps growing. At these times, ads like: “Personal loan now!”, “Easy money and no bureaucracy!” they appear as quick and simple options to get out of trouble.
But You need to be cautious when taking out a loan, as one misstep can cause a lot of headaches. The possibility of having extra money falling into your account tempting, but it’s not worth taking out a loan, for example, to buy something superfluous, like a new cell phone., If you have expensive debts (credit card and overdraft), exchange for a cheaper one, such as personal credit, a good option.
Know how to identify if you Do you really need an extra credit It is important not to curl up later, when paying the installments. The situations that we are able to resolve only by turning off the spending tap and avoiding paying interest unnecessarily.
Map your expenses
Evaluate your expenses and see where you can cut expenses. Even if you can’t save enough to solve your situation, need what about money at the end of the month to pay off the loan. See if you can not reduce the amount of trips to restaurants or buy products from cheaper brands on the market, two expenses that weigh heavily on the Brazilian budget today. Do the financial control It is essential not to fail to pay some installment and end up indebted even more.
Assess the goal of taking out a loan
Identify the reason you need the money. It is essential to be clear about the real need for credit. Using it to buy a car, pay for travel or have more money to shop, which is not planned can put you in an even more complicated financial situation. In the case of renegotiation of overdraft or credit card debt, a power loan lower interest rates to less than half. Also Is it acceptable to use the money for unforeseen events related to family health, for example, or to undertake or do that reform in your property putting it off for a long time. But It is essential that planning is done to pay off life.
Analyze whether the loan is the best way out
Take a loan really necessary or Is it possible to get the desired amount while saving for some time If the answer is yes, it is advisable to collect the necessary money and do not take the loan, avoiding paying interest unnecessarily. Good Lenders Credit can help you save: read our post 50 tips to learn how to save money Borrowing money from relatives and friends a good way out, however, one should be aware that money owes be returned in the same way as to a financial institution.
Research options before taking out a loan
The tip the same for when you going to buy some goods: do some research before going out to hire a credit. In addition to talking to your bank manager to find out what they can offer you, also search the market, in competing banks, finance companies and now also credit over the internet. Because they have leaner operations, institutions that offer an online loan are able to offer cheaper interest rates and still facilitate the contracting process. Good Lenders Credit compared 6 credit options online, see here. If you have any restrictions in your name or already have other loans, it is likely that you will be presented with higher interest rates. In Good Lenders Credit It is possible to consult your CPF situation free of charge. And be careful when choosing the financial institution were to take a loan, as there are many shell companies that take advantage of this type of situation for scams. Search the internet for references and acquaintances before closing a contract.
Plan the payment
Before entering a debt, keep in mind how to exit her. A loan cannot become a debt with which you don’t get to honor it. It is important to note that the value of the installments to be paid monthly does not exceed 15% of your monthly income. Be cautious when accepting proposals of gentle benefits, as they are usually many! important are you always consider the “Total Effective Cost (CET), which includes all costs related to the loan, such as interest and taxes.” Also pay attention to the contract and charges such as a fine and permanence fee, in case of delay in payment of installments. Also check if other big costs will arise, such as a child’s college or the purchase of a property, for example. Do not forget that unforeseen events can also occur,
Read the contract
Unfortunately, most people are not in the habit of reading loan agreements. However, reading the document fundamental (and mandatory) so that there are no surprises along the way, such as maintenance fees, price adjustments, possibility of cancellation only by paying fines, among other things.
Collect the necessary documents
In general, the financial institutions request the following documents for the realization of the loan: CPF, RG, proof of address and proof of income. These documents may vary according to the requests of each institution, but they are all relatively easy to obtain. Financial institutions that offer credit online tend to be less bureaucratic and faster in the process of releasing money.
Deliver your documents and wait
After choosing the financial or bank that offers the best credit solution for your need, s deliver all requested documents and wait. But beware: handing over the documents and not having restrictions on the CPF is not it guarantee that the loan will be released. Each company has its approval policy, which may include payment history, disposable income, economic profile and the existence of other loans. For this reason, do not make loans by relying on the loan money before having a return from the financial institution.