When we have the certainty of being able to reintegrate it. It seems quite logical reasoning, but unfortunately no one is in a position to 100% secure their future and the ravages of the crisis have contributed to turning what was once a safe future into a precarious one. And certainly this premise, which we will have heard and / or read more than once, is transformed into a cruel irony, because precisely no entity grants loans to unemployed people, without resources or who will shortly terminate their employment contract. Then we recommend requesting a loan as long as we have the certainty of being able to liquidate it in the short term, that is: no exorbitant amounts or millenary terms. Nor is it recommended to apply for a loan to pay another one of a smaller amount.
What type of loan should I apply for?
- Bank loans: traditional loan lines are those offered by banks at a relatively acceptable interest. Depending on the risk of the holder, the bank will grant the credit or not. We can request up to 50,000 to 8 years, but as we recommended earlier, it is usually more convenient to request smaller amounts to be settled in less time, as a precaution.
- Quick loans: only indicated in case of an unexpected setback. This type of loan does not require bureaucratic procedures or tedious paperwork, since it is granted in a few minutes without carrying out large checks on the applicant’s economic status. However, not only the interests to be paid are prohibitive, but worse still the penalties in case of repaying the loan within the established terms (which are usually weeks, maximum one month).
- Loans between individuals: loans between individuals are certainly easier to obtain and beneficial than bank loans, as they tend to include greater flexibility in both installments and terms and the agreement is born directly from the bilateral agreement between both parties. In any case, it is recommended to be especially thorough with both the lender and the borrower, as the scams in this land are the order of the day.
- Credit cards: if we already have a credit card, it may be better to use your credit before requesting a new loan from the bank. While it is true that the% APR applied to the cards is, in any case, higher than that of the loans, and in several products it represents even double: over 20% APR. It will be better to obtain the credit via cards as long as we can return it by means of the deferred payment method (revolving) and the amounts do not exceed € 2000 (depending in any case on our income and possibilities of repaying a loan to a greater or lesser extent ).
- Crowdfunding platforms: it is a type of collective financing, carried out in many cases by regulated platforms that act as banks (through risk controls, delinquency studies, selection and approval of borrowers, conditions, etc.) but that, far from being a bank, they appear rather as intermediaries between debtors and lenders. Its function is to combine both groups in its platform, so that users can access the liquidity they need and private investors obtain profitability with their loans. A remarkable advantage is, on the one hand, the ease of the investor to choose in which project he wishes to invest his savings, on the other hand, the most favorable and beneficial conditions and interests for the applicants.
Beware of insurance policies
On some occasions the credit product is accompanied by insurance policies, sometimes unwanted, and other requirements to be met in order to obtain all the benefits set forth in the offer. We recommend paying special attention in the case of insurance, as we will have to pay with the payments if we sign, not having requested the services.
Eye: the Tae and the TIN
The percentages Tae and Tin include in their formula the interest to be paid when we request a loan. However, the APR includes not only the TIN, but the costs and commissions of the bank as well as the life of the loan itself. Therefore, it is necessary that we consult both parameters equally, since the APR has an annual character and the TIN is only applied as a concept for depositing money X for a time that may be days, weeks, months, years…
Perform an overview
It is very important to carry out an overview of the loan and detailed about the final monthly installments to be paid, that is; the real installment that we will pay regularly at the end of each month, with all commissions, interests and the proportional part of the loan itself.
We will try to ensure that our fixed expenses, including credit, do not exceed 50% of our income. If the loan is totally necessary, then there might not be another option, but if it is a whim, it is better not to exceed this percentage.
Fixed or variable interest?
The fixed interest assures us a stable amount at the end of the month, which we will pay regardless of the progress of the markets, while the variable interest is that which is applied according to a reference index and a differential percentage (normally constant) in each period.