The decision to borrow needs to be well thought out and some things need to be taken into consideration. It is often necessary and can be quite positive for your finances, but without proper care any debt can become a problem. So take advantage of these tips to hire and not and regret later.
What to note when taking a loan
At the beginning of the year it is very common to find financially tight people. There are many bills we have to pay, especially in January, so extra cash that you can pay in installments can be a good solution. However, when taking out a loan you need to consider many factors that will prevent your financial health from being damaged and from falling into fraud.
Tips Before Taking A Loan
1. Analyze and organize your finances
Before taking a loan you need to make a spreadsheet in which you will know all your earnings, expenses and debts. With this information visible, you will know what your debt repayment terms are without taking out a loan and also, if you really need to get one, how much you need and what your repayment terms are.
2. Know if it is worth taking a loan
Taking out a loan is often a good solution when you have a very high interest rate debt such as revolving credit card or overdraft, for example. In these cases the debt swap can pay off.
You need to evaluate however what the rates are and compare, because only then you will know if it is a good idea or not.
3. Know your payment terms
It’s no use just saying “I need a loan of $ 10,000”, for example. You need to know how much money you have available per month to pay the benefits. With this in mind you will be able to do the simulations and know how much credit you get and what performance fits your budget.
Tips when choosing where to borrow
1. Compare alternatives
Remember that the money you borrow is nothing more than a financial product. Therefore, it is very important that you know the options available in the market. Compare the companies and offers they make to you.
2. Know the rates, terms and value of benefits
Remember that when comparing two or more institutions, you will have to evaluate using the same loan amount and financial terms. Only then will you know which one offers the best Total Effective Cost (CET).
3. Do not make advance payments
When you take out a loan, be wary of companies that offer you credit by asking you to make a deposit beforehand. This is forbidden. Escape that is trap!
4. Search about the company
Make sure the company is reliable, has a good reputation, etc. Social networks and websites like ReclameAqui can help you with this.
5. Know all the conditions
Read the loan agreement and ask your questions to understand exactly what you are agreeing with.
6. Be wary if the offer is too good
Beware of ads that promise too many facilities. Read the rules carefully and see if the company really exists.
7. Make an online loan simulation at Monico
Did you go to the bank and see what interest rates were available to you? Well, without leaving home you can take out a loan completely online. Visit the Monico website, fill in the details and know within 3 minutes the result of your pre-approval and what rates are available for your profile.