Personal credit is one of the easiest approved credits in the market. However, this type has one of the highest interest rates. Check when the personal credit request is justified and see if it is worth signing the contract.
If you are negative or need a quick release of money, this may be a way out. But stay tuned! By not having a guarantee that you will repay this loan, the bank ends up raising the interest rate to lower the risk of taking losses!
Where to apply for personal credit?
You can get personal credit from banks, financials, department stores, or even without leaving home with online services. But the best option is still usually the bank you already have. That’s because they already know you and have a record of your financial history, meaning they know if you’re a good payer or not.
In this case, your manager can ease conditions such as fees and deadlines and offer you better conditions than a financial one, so it will be more worthwhile.
Before applying for personal credit
Before applying for personal credit, evaluate the options on the market and especially the rates charged by each one and always choose the one that offers you the lowest interest rate per month.
In many cases you need to go through a credit analysis for the release of money and collateral such as guarantors, guarantors, payroll consignment and checks may be required.
Check when the personal credit request is justified and see if it is worth signing the contract.
When is the request for Personal Credit justified?
Some questions can help you define when your personal credit application is justified. Check-out!
1- Will the installments be missed in your budget?
Define how much you will borrow and how much you can pay per month of installments. Evaluate your accounts to find out if installment payments will be missed in your budget. Be careful not to incur a debt you cannot pay!
2- Is the reason for the credit really urgent?
A personal credit can get you into debt, so evaluate the reasons for the credit and think about whether it is really urgent. Whether it is to meet outstanding financial obligations, pay unexpected expenses, take a trip, or buy a computer, think about whether personal credit is worth your situation.
3- Is it possible to install in another way?
The higher the number of installments, the more interest on financing. Experts advise to take only enough credit for your need and installment in the shortest possible time.
4. How can interest rates vary?
Interest rates for personal credit can vary greatly. It can vary from 1.3% to 22.2% per month, according to a survey (BC / 2018). That is why it is crucial to compare.
Stay tuned! Always compare the Total Effective Cost (CET) of debts and not just the interest charged, the CET orders the interest rate, charges and fees that may be charged, plus the amount you are taking as credit.
Remember if! A well-planned loan can be an alternative for those looking for more financial flexibility!
Want to know more interesting information for your finances? Be sure to check out the Low Interest tips on our site!