If you're reading this, it's probably because you need a loan for one of two reasons: you want to consolidate your accumulated debt — that is, combine all the debts you have into one, to pay less — or you need money for a specific purchase or expense. This distinction is important because the purpose of a loan will determine which features will serve you best and which lender to choose, such as Crefisa or MoneyMan.
Take, for example, a loan intended to cover an unforeseen expense. In this case, the loan only needs to provide credit at what you consider an acceptable cost (interest rate). But, a loan taken to consolidate debt, on the other hand, will only make sense if it makes existing debt cheaper or allows you to get out of it. For this reason, debt consolidation loans need to be chosen more carefully and only after you have done some math. Let's take a look at the main points to consider when choosing the best loan!
Interest rate
The interest rate is probably the first thing you will look at when choosing a loan. This amount, combined with the length of the payment period, will determine the amount of interest you pay over the life of a loan. So the questions are: how do you secure the lowest interest rate possible?
It all comes down to your choice of lender and your risk profile. The higher the risk of a default payment, the higher the interest rate you will pay. So even though the interest rate for someone with a specific risk profile varies between lenders, the best way to get a low interest rate is actually to improve your credit score.
Fees and charges
Every personal loan involves a monthly administration fee, but some fees are higher than others and some loans are subject to hidden costs. For some creditors, it's these charges that make them money. They keep their interest rates low to attract customers and then charge large monthly fees to make a tidy profit. When comparing loans, be sure to check the CET, Total Effective Cost, and remember to ask the lender, the company that is giving you the money, if there are any hidden costs.
Payment period
A loan with a longer payment period may seem more attractive as it reduces monthly payments, but you should be aware that a loan paid over the long term will incur a larger amount of interest and more fees. Always look for a personal loan that you can pay back in the shortest possible time. You'll have to pay more each month, but you'll save more in the long run.
Consequences of delay
Also consider the consequences of missing a payment. You should never apply for a personal loan with the intention of paying late or defaulting, but situations arise that make it difficult or even impossible to pay on time. If a strike affects your work and salary, you should be able to approach your lender and renegotiate your loan terms. When you know you're going to miss a payment, don't wait to be charged. Call the help center or stop by the branch to speak to the support center.
good customer service
The best loan services offer a helpline and allow you to make additional payments with ease. This allows you an even greater degree of control over your finances. Look for creditors that offer several service channels or cell phone applications, which make it easier to monitor the contract and pay installments.
A personal loan can often be the “good guy” in your financial life. Just follow these tips and choose the best option to get your home in order.
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