Apply for credit, what kind, what for, how do you do it? We will answer once and for all what is the best loan alternative for you. And, after all, “should I borrow”?
The loan is a controversial thing. Some people think it’s the solution to problems and the fastest and most practical way to get extra money. Meanwhile, there are people who swear to their feet together, which is the fastest way to get into debt and go bankrupt all at once. In reality, it is neither one nor the other. Let’s demystify what it is, how it works, and answer that question once and for all: should I apply for a loan?
Why take a loan?
The reasons why people apply for a loan are the most variable. One of the most common reasons is debt settlement. In this, the person exchanges higher interest rates of old debt for lower ones and installments that fit in the pocket. Taking a trip, renovating your home, and investing in your education are other reasons for such a request. Applying for a loan to have more money to spend, as if it were an ‘extra salary’, is a shot in the foot. You’ll need to repay this borrowed money, so you end up trading six for half a dozen. Considering a loan for larger transactions is a way of not falling into unpleasant situations and unexpected debt.
Should I really apply for a loan?
As there are several lines of credit, each one is ideal for certain situations. It all depends on what the purpose of the money is. One thing that is important to think about is your comfort. If you can, choose options where you don’t have to go to the bank and you can solve everything online.
In the country, the main responsible for the indebtedness of the population are two systems: the overdraft and the revolving credit card. Interest rates are very high, reaching 318% per year and 295% per year, respectively. The main mistake of consumers is to regard the card bill as a second salary and the overdraft as a loan that can be paid less, which is not always true.
If you have fallen into these debts, the best thing to do is to replace them. Instead of continuing to pay these high fees, apply for a loan with lower rates and use the money to pay dividends. It’s much better for your financial health to pay interest of 1.69% than up to 20%, don’t you think?
What is my type of loan?
Refinancing, personal credit, payroll, card, and overdraft are the best known lines of credit. It is common to get lost when you come across this bunch of names and meanings for a transaction. Therefore, it is essential to research thoroughly before making any loan. As we said earlier, the best way to choose a type is to think about what the purpose of money is. Then, from a financial plan, find out how much your monthly income is, how many installments you can return this money to the bank and how much each can be. If you are unsure how to do this, just jump to our homepage and do a credit simulation!
1. Personal Loan
If you are looking for a faster loan that, once approved, can be in your account within 48 business hours, check out the personal loan. It is the most requested type of credit in financial institutions due to its speed and ease. You need to go through a credit review and if the application is approved you will have the money in hand.
However, if you have repayments on your behalf, consider using them as collateral. This gives you access to vehicle and real estate refinancing, further lowering the interest rates to be paid and increasing the number of installments!
If you have a car that is repaid in your name and up to 10 years old, invest in a vehicle refinance. You can get up to 70% of the value of the good, and pay in up to 48 installments. This is a great way for you to have a loan to pay off your debt with interest from 1.59% am. Simulate here!
If what you need is a more robust loan, who knows how to invest in your education or start a business, and has a property in your name, refinance real estate. In this mode of credit, you get up to 60% of the value of your property with interest from 0.99% am And the best: you can repay your loan in up to 20 years! Cool huh? Simulate here!