Personal credit: when to ask and what to worry about
Throw the first stone who never needed urgent money to solve a last minute problem or balance the budget? Personal credit is just that. But it also serves to anticipate the purchase of something that costs a little more and would take time to leave the paper if the path was saving every day.
But did you know that for every type of situation there is a more viable, or at least advisable, way of taking credit? Options include financing, overdraft, credit card, secured loan, payroll and personal credit.
In a nutshell, the bank or financial institution transfers money or pays for the product, property or vehicle and sets an interest rate. It is the institution’s remuneration, how much will you pay to be able to anticipate this purchase. Normally, the client can either pay each month for a combined term (this is the case with the loan), but also accrue interest (we are talking about overdraft). Friendly advice: it is better not to accumulate anything. The sooner you pay the interest, the better.
Who can apply for personal credit?
The credit or personal loan is recommended for you who are looking to pay less interest. The range of options is huge and with many fintechs entering the market, it became easier to find options with low interest rates.
Generally, you will need to show your income to get one, but nowadays there are much more complete (but quick) analyzes to request (yes, we are talking about Guiabolso, where you only need to connect your bills and cards and zaz, the offers they all appear personalized. It’s almost magical!
Even those who are unemployed, retired or pensioner, self-employed, or are negative can apply for this type of loan. The payment will be made monthly and is not discounted on the payroll or the amount of retirement.
As it does not require any property or vehicle as a guarantee, personal credit usually has a slightly higher interest rate. To achieve a more advantageous situation, it is worth abusing internet searches. There are plenty of people interested in lending: banks, finance companies and fintechs. Talk to everyone and use the loan simulators.
And how it works?
The money is usually released in a few days when the personal credit is approved and the list of documents requested is filled out. The same person can also get more than one personal loan at the same time. The only care will be to pay the loan on time. And no excitement: get what you really need.