At some point in our lives we think about the possibility of taking out a loan . There are many reasons why personal loans are taken out , such as unexpected expenses, the trip we always wanted or to start your own business .
Whatever the reason for taking out a personal credit, it is important to know certain aspects so as not to affect your credit history in the future . Discover what you should know before applying for cash loans .
Do you really need a cash loan?
Before applying for a loan you must ask yourself something very basic: do you really need it? . Many times with saving a couple of months, sacrificing some tastes, it may be enough to have the money we are needing.
If the loan destination can wait, it is always better to opt for savings . Not only because you can reach the amount you need, but because you will save interest.
Can you pay a loan?
This is easier when the loan is needed for an investment, as it tends to return, but is complicated when it is a credit for recreational or emergency purposes. Always evaluate if you will have enough liquidity to pay it, remember that less months less interest .
The annual effective cost rate (TCEA)
Before deciding on your next loan, with a financial institution, it is best to find out what the value of the Annual Effective Cost Rate is.
Experts always recommend to those seeking personal loans, to compare the value of at least three financial institutions and decide for the one with a lower TCEA. Good Finance is a great place to get your next credit, because it compares for you!
In addition to the TCEA, you must know everything that involves taking out a loan, as well as the responsibilities you acquire with the entity that grants it to you.
Think again … do you really need the personal loan ? Can you postpone consumption? In case you need it, be sure to check our comparator in Good Finance .