Recommendations to request a consumer loan
Consumer credit is usually popular for its quick approval, however, it is also one of the most expensive credits, and if one does not pay attention, one could end up getting into a mess instead of finding a solution.
Vision for the future
It is not enough to know what you will use the credit for, you should also consider how many months you will take to pay it and if in those months there will be some additional expense you should make. For example, if you apply for a twelve-month loan and in one of the months you get together with the purchase of school supplies, you will find yourself in trouble.
Take a look at your annual budget and make sure that the amount you are going to pay does not affect the other payments you must make.
Primordial: Monthly cost
Consumer loans have a high interest rate, so one essential thing to worry about is: How much I will pay each month and how much I will pay in total. Add this to your other debts and verify that they do not exceed more than 30% of your monthly income. The credit you are requesting will not cover the other expenses you have during the month so consider ALL your expenses.
When applying, you must evaluate which institutions offer you a low interest rate. For that, you can use Cora Maryland’s consumer credit comparator. You can simulate the monthly fee you would pay, as well as the term and other costs.
This point goes hand in hand with the previous one. The longer the term to return the credit, the more interest you will pay. That is, you will end up returning much more than what you requested, which is definitely not convenient for you.
Ideally, it should not be a term so short that it gives you very high fees, nor one so long that it has you paying interest for the next few years.
Not only will you return the money you requested, but also pay some other costs such as the opening commission (which, as its name says, will be charged only in the first installment), the contracting of insurance (which must be accepted by you when the credit is approved), charges for advance payment or delay thereof. All these things add up and the monthly cost will not be the same in all institutions.
Possibility of prepaid and others
Find out if they allow you to make accelerated or prepaid payments, that is, to be able to cancel two fees together or a larger amount if you have an extra income. That is important because it allows you to cancel the credit before and save some interest, however, not all entities allow it. Also take into account if they offer you months of grace or months of non-payment.
It all depends on the institution, so it is important that you compare all the options! And what better than quickly with our comparator.