Banks plan to tighten the requirements to access consumer loans during the present 2020. The constant increase in demand for this type of product in recent years has caused entities to fear for a possible increase in delinquency, forcing them to Take action in order to stop a boom that seemed unstoppable.
The Spaniards have lost their fear of requesting personal loans, reaching the point of exceeding and resorting to these services above what is recommended. In fact, precisely now that we see how the general economic situation is surrounded by an air of uncertainty, the propensity to request these financial products is becoming greater.
But now the thing is going to change, and the banks are going to step on the brake pedal becoming more demanding. Is this a problem? The reality is that no, given that online financial institutions continue to offer the same through the internet, and that is leading consumers to find another way in the digital field. Now, is this the right one? It all depends on how to proceed.
How to choose a suitable Personal Loan
Finding the best personal loans is something that requires spending a lot of time searching and comparing it in the digital field. The total of online financiers only grows, and that makes the offer multiply by a thousand, as well as the chances of finding a formula that is not as good as it seemed in the first instance.
In addition to helping you with comparative tools that serve to find the most interesting proposals in the market, we will give you several very important guidelines if you want to choose the product that best suits your circumstances and your needs.
Some simple and easy to apply tips that will make you invest a little more time before choosing a loan, but that will make your decision the most appropriate and that you will not regret later.
How much money do you need
Having clear the necessary amount is essential so that everything goes perfectly when requesting a loan. With a clear amount, you can better adjust the type of loan to request and avoid having to pay more than the bill.
It is something fundamental, and the first point that you should clarify if you want everything to go on wheels with the credit you request through the internet.
Is it for an unexpected expense or to make a larger investment? What is the real total amount that you will need? Starting from there, the rest becomes much simpler, although of course more variables must be taken into account in relation to these products.
With or without ASNEF
If you are a person who appears in an ASNEF or similar list, that is something that you also need to be very clear from the first moment, since it implies the type of credit you can approach both on and off the internet. In fact, some entities may refuse to offer you any type of loan for the mere fact of appearing on one of these delinquency lists.
Personal Loan with ASNEF usually requires that additional documentation, be provided to ensure that the client has the necessary liquidity to pay the payments. It is a fundamental requirement, but that within the scope of online financial can be quite annoying. And most of them do not usually ask for papers to be provided.
Watch interests and deadlines
Be especially careful with the interest of the credit to be requested and, of course, for the terms offered to repay the loan amount. This may be the most dangerous and lethal combination of credits and loans in general, and that can cause you to have serious problems when paying everything the entity asks for.
You should know that interests usually move between 0% and 10%, in fact, there are offers that cancel them. However, there are also entities that take advantage of this to strain interest that exceeds 100% easily. To this, a maximum payment term of one month or two is added and an equation is impossible to solve. A personal loan that brings more problems than solutions to the consumer. Be very careful about this aspect.
Taking into account these 3 factors, and how important it is to have a comparator such as Perfect Loans, you can make your online credit application go smoothly or, if you don’t spend care and move with discretion, you end up paying a lot more than you should and, therefore, having a completely ineffective solution. Never let yourself be carried away by immediacy and facilities as the only factors to assess when analyzing the benefits of a financial online. Analyze everything we have explained and so, at least, you can refine much more with your selection.
What type of interest should I pay when I apply for a loan?
When we want to calculate a personal loan, the first thing we want to know is how much time we have to pay (Fees) and what percentage of interest we must pay. In that sense, to calculate the interest on a loan, one of the things you should do is analyze the offer in question. In general, the nominal interest rate, or as it is also called TIN, will indicate the percentage of the amount you want to request and it is normal for financial institutions to charge interest ranging from 5% to 10%, although You can get excellent average credit options with an interest of between 6 and 7%.
TIN and APR
These are two terms that you should know and handle fully before requesting or calculating a loan since it is possible that you have found in the market some offers that indicate that the TIN is 0%. These offers are not misleading, on the contrary, they are totally true, but that does not mean that you will not have to pay a little more than the requested amount. This is where the APR terminology comes into play or what is the same, Annual Equivalent Rate.
Then, it can be said that the APR is an indicator that will allow you to know in more detail the real and precise cost of the personal loan, since it not only has the TIN calculation but also considers other elementary parameters such as how much you will be paying in total, to your bank or borrowing entity.
Therefore, the following elements must be taken into account:
These are important to take into account since they will determine the real cost of a loan. It is the one used to compensate the bank for the steps it takes to study whether a profile is suitable for a loan to be approved.
It is very common to observe today that many banks are no longer charging anything for these concepts, however, it is an element that you should not overlook when evaluating the offer of a personal loan.
It is another elementary factor since to calculate the exact cost of a personal loan, the APR includes the repayment terms. In other words, the time or period in which you will return the borrowed money or debt.
Depending on this term, your fees vary and interest may also vary.
The loan amount to a request
It is obvious that the total calculation of a loan will depend on this condition since the sum of the above elements will be based on this first factor.
Last but not least, it is necessary to keep in mind that a personal loan can solve some emergencies or financial troubles, but it is not advisable to request it when it comes to making expenses that are not a priority since these types of decisions It can positively or negatively affect your economy.