If you need a personal loan, you must be sure that you have found the best option: personal loans and good refinance rates. Find unbiased advice here to help you make the best decision.
Personal Loans are used by clients for what they deem convenient (paying other debts, purchasing devices, traveling, medical emergencies, etc.) However, since they are not guaranteed by pledge; that is, for the object to be acquired, they tend to have higher interests.
How to obtain it?
Requesting it can often be a cumbersome process if you do not know how to do it or if you do not know how to negotiate. If you are thinking of requesting a loan from a financial institution, be sure to take advantage of and know all the details before accepting the deal.
First, ask the advisor about the benefits that your entity offers you by becoming your client. Don’t forget to evaluate the “tied products”, in this way you will be able to obtain better interest rates; for example, some institutions offer to offer you a preferential rate if you also have other accounts or a credit card with them .
An important point to keep in mind is to comment to the advisor on the offers proposed by other financial entities, in this way they will seek to provide you with better benefits so that you can obtain credit with them.
You must choose a term according to the budget you have, so you can define the time in which they can finance the loan. Pay fees by getting good refinance rates from rateking. that allow you to continue the month without major financial adjustments, but also do not pay the minimum monthly, since you will end up generating more interest.
Finally, if you have recently had a bad financial time and are thinking about applying for a personal loan , you should know that your information was registered and all the entities to which you request the credit can access it, so they could see you as a risky customer. However, there are actions you can take that will help you obtain the personal loan you are looking for:
- Start with small amounts that are easy to return, this way you demonstrate to the entity that you can return the money.
- Look for a salary account so that the financial institution verifies that you receive a monthly income and that you have the possibility of returning the money that you are requesting.
- Resort to more flexible options, not only banks grant loans, there are also financial or municipal savings banks. Ideally, you should look for and compare different options.
Summary Sheet
The summary sheet is a document that will be delivered to you along with the requested loan contract and in which it is explained as a summary, as its name says, the main data and conditions of the loan.
This document is delivered when the contract is made, so you should review it and make sure you understand all the information. Once you have finished reading it, you must sign it together with the representative of the financial institution that is granting you the credit.
Many people are afraid to ask for a loan because they do not fully understand the contracts and information of refinance rates, but this summary sheet is a great help to have the main data and obligations written in a simple and clear way, to know exactly what is being hired and avoid being left with doubts.
Remember that each institution is different, so it is better to compare the alternatives before choosing the final option. One way to do this is through Comparabien’s personal loan comparer.
Additional Expenses
Before making a decision about the personal loan you are requesting, you should make sure that you know all the details regarding the payments that you must make, in order to avoid surprises for payments that you didn’t know were included.
Remember that each financial institution handles different interest rates and conditions, so not all of them will end up paying the same, since there are extra costs that are applied to credits and that increase the amount that must be returned monthly.
These additional expenses may include life insurance, unemployment insurance, commissions, maintenance, among others. The exact charges depend on the entity that contracts, since each one handles a different policy. That is, while one may include life insurance and charge maintenance, another bank may charge you only unemployment insurance and disbursement commissions.
In order to know exactly what the real cost of a loan will be, it is necessary to ask for the TCEA, the Annual Effective Cost Rate, since in addition to the interest rate (TEA), it includes all the additional ones mentioned.
Debts
If you have applied for a personal loan and are having trouble paying your installments, the consequences may be more expensive than you think.
Paying off monthly loan installments is essential to keep your finances in good condition, since this way you will be able to continue accessing them in the future. Many people overlook this and don’t prioritize installment payments, which ends up giving them more of a headache.
First, you should know that the debt will continue to grow, not only because of the unpaid installments, but also because of the interest that the delinquencies generate. Another important point is the lowering of your credit rating, which will make it difficult, or in the worst case, prevent you from obtaining credits in the future. Finally, something that many overlook is that debts can bring complications when looking for a job since some companies make it a condition in hiring that workers do not have a bad credit history or are reported in loss.
Being punctual in paying the loans you request is of utmost importance. In addition to paying on time, one way to be responsible is to compare the available alternatives before choosing which entity to turn to. That way you can choose the loan that suits you best.
