The consumer credit sector ended 2019 with bittersweet news. Late payments are increasing, so 2020 is expected to be a year in which, although the financing tap will not be closed, the conditions for contracting loans will be tightened. So, the requirements demanded by banks in 2020 They will be hardened. On the one hand, according to the latest data published by the Bank of Spain, Spanish citizens must have a solvent profile so that the financing request is not rejected. The bank will not always grant 100% of the cost of a project, so it is “important have at least 20% of the total saved to increase the possibilities of obtaining financing ”, according to the HelpMyCash firm, dedicated to the comparison of banking services.
For the EAE Business School professor, Pere Brachefield, one of the factors that most banks take into account when granting a loan is “the guarantee offered by a user to pay back the borrowed amount”, that is, “the applicant cannot be indebted in more than 30%" Thus, having regular income consistent with the amount of funding requested will be a positive point. Like the hiring of certain products such as credit cards or insurance. As the comparator points out, "hiring these products will increase the chances that the user's request will be approved." However, he warns, "you have to pay attention to the possible costs, which are not indicated in the Annual Equivalent Rate (APR) of the loans, to make calculations and know whether or not it is worthwhile to hire them."
According to the data published by the Bank of Spain, the average APR of consumer loans in the last month was 7.56%, the lowest for almost ten years, when it stood at 7.47%. For this reason, the objective of the Spaniards will be to “seek loans with a similar or lower APR to make it a good offer, ”says HelpMyCash. Another factor that banks will also value when granting a loan is the destination of this. "It is not the same an entrepreneur who needs financing for the purchase of machinery for his business, than to grant a loan that is destined for a tourist trip," says the professor. In the first case, the bank has a greater guarantee that the concession will be returned, while in the second, says Brachefield, "there is a possibility that the money-back guarantee does not occur, so there would be an evaporation of money" .
Finally, as happens when the mobile phone or insurance company rate is changed, when looking for financing, the teacher also recommends “value the different offers of banks" In this same line, the comparative firm agrees, which warns of “not complying with the first entity that offers us a personalized service, but that, in a scenario where the requirements for financing are tightened, having several offers available will be a great asset for the negotiation with the bank ”.
. (tagsToTranslate) Banking (t) Finance (t) Credits (t) Late payment