All of us are subject to unforeseen events. Medical care, car repair, or even overdrafts are some of the cases when you may need extra money to cover these expenses. One of the solutions to solve these problems is to make a bank loan. The other option is the text loans .

Whenever you need a loan, remember to research and compare rates on all proposals, especially if you want a personal loan. Personal credit is among the most expensive in the market because it has very high interest rates. So when it is your last alternative, you need to choose the smallest loan you find.

Do read the contract carefully before signing it

In the desire to receive the desired capital, many fall into the error of not checking the financing conditions of the institutions. This is a classic slip that should be avoided. It is extremely necessary for the person to read the contract before signing it. This is the only way to know the clauses required by the institution, the amounts and how the payment of this debt can be met. Pay attention to the number of installments to be paid, as well as the already commented interest rate. It is essential to confirm that the conditions exposed by the business are the same as those present in the contract, since what is legally valid is only what follows therein.

Do not check if the portion is compatible with your income

The loan is repaid in several installments. Therefore, this amount must be compatible with the customer’s monthly income. For example, if you have an income of $ 1,500 and make a loan with installments of $ 700, this financing, if accepted, will be made through collateral, which may cover both movable and immovable property. If you are unable to pay those installments, you will have to surrender the good that was given as collateral.

Search your bank first

The bank charges less than financial fees because it knows your track record and knows whether or not you are a good payer. So if you need an urgent loan, go to the banks with your account first. Money comes out faster and you can get some payment facilities.

View All Loan Rates

To know the amount you will pay does not just look at the interest. Ask about the Total Effective Cost of the debt, which shows all the fees you will have to pay on this loan, including taxes and insurance.

Compare CET to other banks

Even if you simulate the personal loan at your bank, research and compare with the same credit rates elsewhere. So you know where it is cheaper to get credit and you can even negotiate a discount with your manager.

Escape the financials

They promise fast money without credit analysis, but are much more expensive. Click here and understand why it is not worth to take out the personal loan at these institutions.

Learn how to compare

The lower the value of the CET, the lower the price you will pay for the personal loan. Therefore, before signing the contract, compare the percentages. If one bank has a CET of 60% per annum and the other 48%, borrow from the institution with the lowest CET.

Written by
Kristel Nice