Requesting personal loans is something that we all have to do at some point in life. No matter how far-sighted you are and no matter how much you save, some situation will always arise in which you lack money and do not have enough liquidity, for example to start a business or buy a house. As we want the experience to be as positive as possible, today we bring you some tips that you should take into account when borrowing money.
Value well your need for money
There are many reasons that can lead you to the need to request a loan, but among them there are some that you should avoid. Before going to the bank, assess whether you really need that money and the obligation that you are going to assume in exchange for it.
It is not advisable to borrow money to make an impulse purchase or to pay off another loan or an unnecessary trip . And if you know that the stability of your job is in doubt, much better if you stay as you are.
Do the math right
Unless it is a loan between family members that may not have associated interest, in the rest of the cases if you borrow money you will have to return the amount you have requested plus the corresponding interest .
That is, your debt is not going to be X but X + Y. This is something that you must take into account when doing accounts and see if you can really face the payment of the return of a personal loan , because the interest applied may cause the monthly fee to be somewhat higher than what did you expect.
Find out about the banks that grant personal loans
This banking product is quite common and all entities work with it, but not all of them offer the same conditions . In fact, you will surely get better conditions in terms of interest or applicable commissions if you are already a customer of the bank or if you agree to link with it by direct debiting the payroll or hiring a credit card.
Think that the goal is to get the cheapest personal loan . So pay close attention to the applicable interest (remember to compare the APR and not the TIN), the applicable commissions and the connections that they require.
If the interests are low but in return you have to hire a credit card and pay fees for it, perhaps the operation does not compensate as much as it seemed at first glance.
Solve all your doubts before signing
As we do not ask for personal loans every day, it is normal that the language used in the contracts associated with these products is a bit complicated . Once you sign, you are already linked with the bank, so make sure you have a good understanding of what you are going to sign first.
Consult all the doubts you have with the bank staff, it would even be recommended that you consult with a legal expert. As the contract is signed in a public deed, you can also take advantage of the visit to the Notary and ask him what you do not understand .
Requesting personal loans always has an associated cost, so evaluate your personal situation very well, your need for money and the conditions offered by the bank. So you can make the smartest decision possible.
We, for our part, what we recommend is that you use this product as little as possible . If you organize your financial resources well, you can have an economic cushion that allows you to meet specific money needs and thus avoid having to ask for a loan or that, if you have to, the amount is as low as possible.