At times, your payday financial situation may be unfavorable. Whether it’s an unexpected emergency spending, unemployment, or for those who’ve gone bankrupt for lack of planning. Then the need to take out a loan is imminent. But do you know the best practices for not making mistakes when taking this step? What to take into account to apply for a loan or what care should you take? Here are some borrowing tips that will make this decision easier.
Tips for getting loan
First or last option?
The loan can be one of the first options that come in mind to solve the financial problems. However, experts recommend that this practice be the last option.
As good as the credit line may look, we must always remember that along with it come interest rates . So be aware that getting a loan should have motivations like emergencies or more expensive debt swaps .
Get organized and plan!
Organization is one of the best tips to get loan.
Paper and pen or a good Excel worksheet will help you right now. Make a list with all your expenses. Include also existing debts. Make another list with the recipes and winnings you receive. This will help you understand what your real situation is.
Take advantage of this exercise to check if there is a possibility of cutting costs on some item. Another option is to make substitutions for other practices and acquisitions more in account.
At this point, you might even find positive surprises. Sometimes you may realize that your financial situation is not as troublesome as it sounds. Then you can even get away from the need to take out a loan.
Among the tips to get loan, payday loan is undoubtedly the type of loan with the lowest interest rates on the market. This is because this modality brings financially less risky work. The installments to be deducted are made directly from your salary or your INSS benefit.
If you are salaried, look for the information in the bank that you receive your benefit. He who can release your consigned credit.
For public sector workers, the Central Bank reports that interest rates are even lower than for private sector workers. However, for both profiles the values and percentages vary from bank to bank.
Find out well before hiring. For retirees and pensioners of the INSS there is no rule of exclusivity with banks. Thus, the decision of which financial institution to contract becomes more flexible.
The payday loan is the best option for those who are not salaried and have no right to payroll deductible loans. It should be considered before even getting to the point of needing to install payment of the credit card or use the overdraft.
The information in the payday loan, the rates fluctuate greatly from month to month, being able to reach more than 20%. They are also different in each financial institution. In this case, a thorough research is carried out to determine which company offers the lowest interest rates and payment terms.
Total Effective Cost
Many people are unaware of the Total Effective Cost (CET) of the operation and do not weigh this item when it comes to getting a loan. The CET must be evaluated along with the interest rates of your financial institution. It will reveal the charges charged by the banks.
That is, the option with the lowest interest rate is not always the one with the best CET, which includes taxes, insurance and the registration fee.
Stay tuned! According to the Brazilian Institute of Consumer Protection (IDEC), all banks and financial institutions are obliged to indicate the CET to the consumer.
Take advantage of the various digital tools and simulate your loan. Thus, you will have the real dimension of how the loan will interfere in your life.
Too good to be true
Link the “distrust button” to promises that give too good conditions, such as promises of swift credit approval, or very different from the market standard.
Something may be camouflaged in the information you are not seeing. Check out the financial reputation and carefully check all the risks and values involved in hiring your loan.
The internet and the convenience of new financial markets, also known as banking correspondents, allow you to borrow directly through your cell phone and in a few clicks. However, sometimes they can bring on headache and feelings of injury.
In this case, it is also worth checking the company’s reputation in the market and seeking to know which company or bank is behind that credit.
Do not be defaulted!
These tips to get loan for sure have helped you to think about what to take into account to apply for a loan and the care you should take.
Now the decision is in your hand and you need to focus on maintaining your financial health.
Getting a loan can help a lot to catch the breath you need, but it should not be a reason to relax and let things run out of control again. Keep discipline in control of your incomes and expenses and do not default.