The financial situation has tightened and the decision seems inevitable: you need to know how to borrow money. The truth is that it is not that simple to get loans from financial institutions.
Meeting some requirements is necessary: having income from a certain value, clean name in the market, etc. Here’s all you need to know how to borrow money:
What are the main requirements?
Financial institutions require anyone interested in buying a loan, be it online or payroll-deductible, meet some key requirements before releasing the money. This is because banks and lenders need guarantees that the customer will actually be able to afford the installments of the loan he has purchased. It is therefore very difficult to have access to money if it cannot offer the reliable financial institution guarantees that the loaned amount will be repaid.
Getting loan approval by the bank is easier if you have income compatible with the amount being borrowed. Another relevant point is to have the name clean in the market. Most institutions do not read to those who are in the record of bad payers in institutions such as Credit Protection Service (SPC) and Porasa. Another important requirement is not to have part of the income committed to other loans. When this happens, the bank is unlikely to approve the request as the risk of you failing to meet the financial commitment is greater.
Most popular loan types
There are several loan options on the market. The most popular are the overdraft and the revolving credit card. Despite the apparent ease of getting the money, after all, overdraft is available in the checking account and the credit card revolving can be withdrawn at the ATM, these options are those with the highest interest rates on the market.
Other alternatives for those who want to know how to borrow money are payroll loans, where installments are directly discounted from paycheck, and the secured model. In these types of loans, the interest charged is lower precisely because the bank has a more firm guarantee that the borrowed money will be returned. Anyone who cannot resort to one of these alternatives still has the option to apply for a personal loan from the bank. Interest is higher, but still more affordable than for overdraft and revolving card.
Tips for getting a good loan
The first step for those who want to get a good loan is to analyze if they really need this amount. Consider if it is better to cut spending and live on less than borrow money from a bank. If it turns out that this is really the best alternative, compare the interest charged by financial institutions on the WhoSave Bank website. Also check the repayment term: the less time you repay the loan, the less you will pay in total. Another important point is to make sure that the installments really fit your budget. If possible, save to have enough money to anticipate the last installments and pay less interest.
Loans for those with dirty names
Although it is more difficult, who has a dirty name in the market can get a loan. If this is the case, you should look for financial institutions that specialize in this type of trading keeping in mind that the interest charged is much higher. Escape the loan sharks!
Regardless of the way you choose to borrow money, it is important to keep in mind that this is never the best option. Get organized financially to pay off the installments and in the future create a reserve fund so that you do not have to go through this situation anymore.