When talking about consumer loans , money that you can borrow from a financial institution for a certain period of time and that you must pay in installments, urgency and desperate measure come to mind, but nevertheless sometimes you can plan a credit of consumption for a project like fixing the house or going on a trip. How and when to ask for a loan? It is a key question when planning.
It is important to know that if one asks $ 100 from a financial institution, after a certain term it will return to the institution an amount greater than $ 100. How much higher will be associated with interest, insurance and commissions associated with consumer credit.
In situations it is good to have a consumer credit at hand when you do not have enough money to complete a project, however, I suggest restricting the consumption credit only to occasions that really give us social or money profitability.
In this post I will address a little how to ask for a loan and also when, since it is important to take credits when you really need it and with your consumer credit your finances or your financial control will be improved.
Consumer loans: How and when to request a loan ?. The how.
To address how, it is important to know different characteristics of consumer loans , such as:
- The CAE of consumer credit .
- If the consumer credit has grace months, grace months refers to the number of months that I do not pay consumer credit fees.
- What can you ask me to take a loan: for independent workers they usually ask for a declaration of income; in the case of dependent workers, an employment contract or the last three liquidations, certificate of seniority, identity card are requested. The financial institution could also request a guarantee to obtain a second source of payment.
Request for a loan
After knowing the characteristics and documentation that you can ask me to request a loan, it is important to quote in different institutions and choose the one with the lowest CAE. It is suggested to take the basic insurance for the taking of credit demanded by the financial institution. In general, only the insurance of reimbursement is requested by the financial institution, this is the one associated with when the borrower dies, despite the fact that the SBIF (Superintendence of Banks and Financial Institutions) does not declare any mandatory insurance financial entities can Require minimum insurance, however one can take such insurance at any insurance company.
In order to choose the most convenient one, the ones that have the lowest quota value for the same number of months must be compared, that is, I must compare consumer loans with the same term.
Consumer loans: How and when to request a loan ?. When
To define when one should ask for a consumer credit , in general the question should be asked whether it is necessary or not, the following examples are the most recurrent situations when requesting a consumer credit:
- Trip: One generally has a trip every year, then it is suggested that if one is going to request a loan for a trip, this loan is for a period of 12 months. It is not very smart to ask for a 48-month loan for a trip, unless one travels every 4 years.
- Home Project: If one wanted to add value to his house, making an extension, one could plan a longer term loan such as 48 months for example, it is not far-fetched.
- Debt Consolidation: At this time rates have dropped and it is convenient to collect all the debts of all financial institutions into a single debt, so one would only pay a monthly fee to an institution, one could extend the term a bit and also lower The monthly payment fee.
- Purchase of a car: The purchase of a car is associated with auto loans, and it is valid to request a 24 or 36 month loan if the useful life you are going to give that car is consistent with that term.
- Several dreams: In general, when one asks for a credit for a particular dream, the duration in your life of that dream should be associated with the term of the consumer credit. However, I suggest that dreams are associated with savings rather than consumer loans, since one can propose a monthly savings to achieve the desired sleep in a certain amount of time.
In conclusion, it is important to know what the associated costs are when requesting a consumer credit and also when it is good to ask for them. As a suggestion I prefer to leave the consumption credit for very specific cases, since the financial costs increase the monthly expenses that one must face month by month and with this our surplus for investment and savings decreases.