Search, research, find and compare loan deals… this is the mission of anyone who is wanting to get a loan, by the way, borrowing money from a bank or a financial institution is a serious commitment that can have terrible consequences if the payments are not honored. The first step is knowing how to determine why you need a loan and if you can repay it, what interest rates you want to pay and if you have credit scores to get a low interest loan.
It is quite true that people do not have thousands of dollars saved under the mattress to pay for such expensive goods, motorcycles, homes and fund the craziest desires. That’s why we take out personal loans, simply to finance what we want or need, but we do not have enough money in our pocket to get it in sight.
The main idea at the time of getting a loan these days is the convenience to seek, compare and contract credit without having to move to a financial, bank or loan store, and even if possible, make several simulations on different lenders to analyze which offer better interest rates and conditions. Saving time, fees and money is the best part of online comparison.
Why do you want a loan?
- Buying a home: When you want to buy a home but can not pay on your own money, negotiating a financing with a bank may be the only viable option. Your monthly payment to repay the loan is called a mortgage.
- Reforming the home: Homes often need to be renovated over time, either to undo natural wear, to buy new furniture, or to beautify the home. You can always borrow money to complete home projects if you do not have the money available.
- Loan to finance car: Buying a vehicle can be very expensive here in Brazil, especially if it is a new car. You can buy your car through bank financing, direct with the automaker or a credit union and pay in short, medium or long term monthly.
- Education Loan: Education in general costs thousands of reais per year, from kindergarten to college and university level. There are several ways in which you can pay tuition, tuition and curricular materials, the loans in some cases are necessary to pay for the future of the children or grandchildren.
- Business expenses: Having your own business or startup means you will need to be able to afford overheads, such as employee salaries and employees, as well as space and office supplies rentals. Small business loans are available to help honor some of these costs. The amount of loan released depends on the type of business and the business line.
- For emergencies: sometimes situations arise that simply are not welcome. Medical emergencies, unforeseen car repairs, house-to-house damage caused by a storm, and many other problems that come out of nowhere can all cost good money. What if you do not have enough savings to face emergencies? One of the exits is to decide to hire a short-term loan to cover the expenses.
- Special Events: Special events are expensive and take place year-round. The ceremonies of marriage, graduations, burials, gold wedding of the mother etc. If you do not have money left over, funding anything that has been said, will require applying for a personal loan where it is easier and quicker to pick up.
The different types of loans
Defining the mode of credit you want to get the loan offers will determine how you will repay, this needs to be done responsibly otherwise – what happens if you can not afford it? The loans can be borrowed from private lenders, government institutions and private individuals, in addition to loans with loan sharks.
- Secured loan : A secured loan is obtained using your property that has value as collateral for the loan. If you are unable to repay the loan, the lender gets your property, usually put up for auction to be repaid the amounts lent. The collateral for a secured loan should be valuable, such as a home, apartment, vehicle and other assets.
- Unsecured loans: As the name implies, unsecured loans are the opposite of secured loans. Unsecured loans do not use collateral so your lender gives you the amount in cash or credit requested by you. Lenders will usually charge a much higher interest rate for these types of loans.
- Home Equity Loans: A home equity loan is a type of secured loan that accepts a property as collateral. Although it can be a great way to fund a project by paying very low interest rates, if you can not make the monthly payments on time, you lose your home.
- Personal Loan: A personal loan is a type of unsecured loan where you take out a lent but have to pay installments plus interest over a period.
- Card Borrowing: People do not consider credit cards as a type of loan, but any operation in which you need to pay money with interest, is a loan. Credit cards come from various companies and banking institutions and are usually paid on a monthly installment or bill.
Simple Steps to Compare Multiple Loans
Your most important tool to find a reasonable loan is to research. Making a sequence of requests should ensure that you can find your best loan, the one that fits right into your pocket and will not get you in trouble if you can not afford it. You should understand first:
- What kind of loan offers do you want?
- What type of loan can you hire?
- How much will you be lending and how much will you pay in the end?
- How much is the interest rate on the loan?
- How much are the plot values and how will they be paid? You can estimate how much you can afford with online tools like a fixed interest rate loan calculator, and can compare up to four loans with the loan comparison calculator.
- Are there any interim payments? How many?
- Do you have a grace period for payments? A grace period gives you some time if there is any problem with your income.
- You can make early repayment of the loan.
- The modality allows to make the portability of credit.
- What happens if you can not repay the loan? The inability to repay a loan under the terms of the contract is called default and can generate many problems for the borrower.
- How many payments can you afford to pay until you are considered a defaulter? Each type of loan and lender will have different credit policies for late payments. For most loans, no longer paying 2 or 3 installments already runs the risk of losing good or going to stop at credit protection.
- Is there any penalty if I pay the loan before the end?
- What do the laws say about the type of loan you are hiring? Some loans have limits on interest rates, penalties and penalties depending on where you live. Make sure you are not agreeing with terms that are really legal for a lender to define in your credit policy.
- Do not sign any documentation without reading all the small letters and ask the reps to get all your questions about the loan type.
- Be sure to keep all payment records in case your lender says you are late.
Loans to Avoid
Some predatory lending institutions have established outrageous rates and interest rates that you should avoid them altogether.
- Loan with loan sharks: loans with loan sharks are quick and easy to pick up, you can get up to $ 2000 or more to pay with 30, 60 or 90 days. These types of loans are illegal because lenders charge extremely abusive interest rates and are not in accordance with any law. The danger of such loans is that if you do not pay them back, you can end up with a giant debt, even if the amount you loaned was small.
It is best to avoid any lender that does not give you enough information to make the best choice for your personal or consigned loan. By law, you have the right to choose and to find the best loan options. Make sure you know all the steps to compare loans before making a concrete decision.
How to apply for your loan?
To get access to the loan offer options of the best lenders, you need to access a comparison website or interest rate reviews, in some cases you will need to answer some questions about your interests.
Typically you will have to fill out a form for the intended loan, informing personal data and the intended loan, done so just wait, in less than 5 minutes an answer arrives in the email or phone call. Good luck!