7 Tips for requesting a personal loan

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7 tips for requesting a personal loan. Buying a car, doing a home renovation , or financing studies are some of the main reasons for requesting a personal loan.

Tips personal loan

However, in order to acquire this financial product it is important to comply with a series of requirements such as having a work contract or demonstrating sufficient financial solvency. In addition, taking into account other aspects such as the type of commissions or interest that the bank asks for, can help this financial product not turn out more expensive than expected. At Rastreator we give you some tips to keep in mind before applying for a personal loan.

personal loan

Don’t ask for more money than you need

A few years ago, when requesting a loan, it was common for the bank to offer you an amount greater than what you requested. In this way, if the initial reason for requesting it was to change the kitchen of your house, you finally ended up also reforming the bathroom or buying new furniture. Nowadays, this trend has changed a lot, both on the part of banks and customers. The former no longer grant loans so lightly and the latter request only the money they need to cover a specific purpose.

Return it as soon as possible

When the entity with which you contract a loan asks you how long you want to repay it, try to make it as short as possible. You must take into account your income and make sure that you can periodically assume the fee . After that, do calculations and try to adjust the repayment term as much as you can since the longer it takes to return it, the less security the bank will have and the higher the interest will be.

In fact, this is one of the factors that makes the price of loans more expensive . On the contrary, if you pay installments of a greater amount, in a shorter period of time, you will repay the loan earlier and it will be cheaper.

Don’t be late in payments

When you take out a loan, it is very important that you pay the installments within the term you have set with the entity , without delaying a single day. If you comply with the payment later than what is contemplated in the contract, the entity may penalize you by applying default interest, which is usually much higher than ordinary interest .

If this situation repeats itself or you stop paying a monthly payment, your debt will not disappear, but will increase and your assets or bank fees could be seized. Therefore, before requesting a loan, make sure that you can pay for it and, above all, make the payments on time.

Justify the expense

When you ask for a loan, most entities will ask you what you intend to invest that money in , since it is information that provides them with certain security. It is not the same that you want a loan to pay off previous debts, than to buy a car .

For this reason, most entities offer specific loans to finance a specific purpose , for example the purchase of a car, home renovations, studies, etc. These products have specific conditions and advantages. However, for the bank to grant you these benefits, you must prove with the corresponding documents that the purpose of the loan is the one you have indicated .

Do not resort to «fast money» and without guarantees

When you apply for a loan, entities usually take a few days to confirm that you are eligible to lend you money. To do this, they will ask you to provide guarantees that show that you can return it . If you are an employed person, the most common thing is that they request your payroll, which must be of sufficient income, and your employment contract , which may require that it be indefinite. If you are self-employed, you will also have to demonstrate financial solvency through invoices, bank statements or other types of documents.

Look at the APR

When hiring a loan, you not only have to look at the interest that you are going to be charged, but there are also other conditions that can make your loan more expensive . Thus, when you ask for a credit or loan, many entities may require you to hire certain products such as insurance or cards, or charge you certain commissions that can make the product cost much more expensive than it seemed if you only took into account the interest. Therefore, when you are going to contract a loan, look at the APR (Annual Equivalent Rate), which is the one that includes the total cost of the loan, including commissions, interest, expenses and commissions.

Compare different personal loans

Without a doubt, the best option to get the most suitable loan for each person is to compare the different products on the market and offered by different entities . The Rastreator.com Personal Loan comparer does it for you. Select the amount of money you need and fill in the questionnaire data and in a few seconds you will be able to know the loans you have at your disposal. In this way, you can choose the loan that is best for you and avoid paying more money than necessary for it.

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