Faced with the economic crisis, family emergencies, the start of ventures and investments, online loan applications increased by 40% during the first quarantine, according to Ripley Bank.
Only until July of last year was it reported that the amount of total loans grew 107% more than before the pandemic. But, what should the people who will soon access a loan with a bank, box or finance company?
1. Economic situation
Evaluate your financial situation by identifying your income and monthly expenses. Before requesting a loan, you should consider that the loan installments should not represent more than 40% of your income.
Check how much you can pay per month. It is recommended that you allocate a monthly fixed amount so that you do not leave without money for your daily expenses and emergencies.
2. Credit history
Keep in mind that if you ask for a loan it is important to meet the payments without delays to maintain a good credit history.
Building a good credit history not only means having access to more financial services, but also to better interest rates and credit conditions in general.
3. Check the conditions
Before applying for the loan, check the different credit modalities that exist and what they include.
Some modalities include life or unemployment insurance, direct payroll discount option, interest rates fixed, etc.
Take into account the TEA, the annual effective rate, and the TCEA, which is the annual effective cost rate. The first is only the value that a financial institution charges you for lending you the money and the second is the annual effective interest rate plus commissions and other additional expenses such as credit life insurance.
4. Verify the time in which it will be financed
Check the deadlines for financing that will have your loan. To do this, keep in mind that generally the longer the time, the higher the interests.
If you are going to become a creditor of a debt, it is advisable to pay as soon as possible, opting to repay in few installments.
5. Find the best option
Do not take the first option you find or the pre-approved loans offered by various banks.
Find out and compare the credit offer before accepting a debt. You can review the different types of loans taking into account the amount, term, and income on the platform https://comparabien.com.pe/