Borrow Money or Credit – Before you sign up for a credit card, bank loan or store card, or add to an existing card or loan, it makes sense to think if you really need to borrow money. At times like this – with economic uncertainty and rising accounts – many people are now choosing to pay the money they’ve lent instead of borrowing more.
The advancement of lending companies in Brazil (fintechs) does not stop growing as well as borrowers. Those looking for borrowed money are usually people who want to get financial resources just because of unexpected situations. In addition to small short-term loans, we also have loans between people and crowdfunding that are done easily.
If you believe that you fit the criteria of the lenders, go ahead and ask for your loan, start your application process easier even if you are dirty and under a credit restriction. Unsecured loans and personal credit for negatives are currently the most debureaucratized means for borrowing money .
Deciding if you should borrow money at interest?
There are some very important questions that you need to answer before you borrow money. You should ask yourself if:
- Do you really need this money?
- Do you have other ways to finance the purchase without the loan?
- Can you cash in cash what you are planning to borrow?
Do you really need to spend that money?
If you have a tendency to buy impulse products and services? Try to give yourself a period of abstinence for at least two weeks. You may think you can not, but at least try to be less anxious to start shopping.
Some people who make personal loans do this without thinking if they can actually afford the cost that will be generated monthly. They feel they have no choice, but this is usually not the case. You may be able to postpone the purchase or not. Try to ask yourself:
- Can I wait until I can buy the item without having to make a loan request?
- If there is something I need, is there another way to get it through trading for something else, buying it second hand or gaining it from someone else’s gift?
Can you use some savings instead of borrowing?
If you really do not need to spend any money uselessly, you should seriously consider saving some money each month rather than incurring a new debt.
If you can wait and save to buy instead of using your credit, this will cost a lot less (unless you are qualified 0% interest credit card purchases as you will not have to pay any additional costs.
Saving money to spend
If you do not have savings in the bank, try to start saving, for example, $ 50 a month, it would take a year to save $ 600 and you would still have earned interest on that amount.
You have decided that you want to borrow money.
If you definitely want to make a loan application to get some money and are sure you can repay it, fine! Just do not forget that there are a number of important factors to consider before making this decision.
How much can you pay for each installment?
Almost two-thirds of the people who have a credit card pay their bills in full every month. If you can not afford everything, make sure you do not just make the refunds required by the institution that administers your credit card.
It is very important to find out how much you can afford each month as this will affect which loan option is best for you. Make sure that you are being realistic about how much you could afford to pay if your home mortgage or home rent increases if you had to spend more on things like increasing the value of water bills, energy, or if you lost your source of income or salary.
Choosing the Right Credit or Loan Type
You should also be sure to choose the right kind of credit or loan for each situation. Otherwise, you could pay more than you need to pay with interest and additional costs. Search and compare loan and credit offers by looking at:
- What is the cost of contracting and approving
- What is the interest rate applied monthly and yearly
- How much will be paid in the total amount
- What penalties for lost or overdue payments
- It is possible to prepay or repay the loan before term
Not all credit options are reliable, good or safe.
If you have a good credit rating, congratulations will be able to ask for money with interest rates and facilities, if you have the name denied, your alternative are the same loans with the dirty name or the contracting of loans without consulting the SPC or Serasa, however the interest is higher, 15% minimum.
The last examples are costly credit modalities and should be avoided, if possible, get access to payroll deductible loans, interest rates are 2.5% to 4% on average for employees and employees of private companies.