A personal loan can be a great way to get the money needed to finance the renovations of your home, the purchase of a new car or motorbike and why not, even of the vacation you have been planning for a while. team.
Whether you are interested in applying for a loan from a bank or lender, the approach process is very similar. However, obtaining a loan in an intelligent way requires, on the part of the interested party, a dose of research and more awareness to ensure that he chooses the best service that the market offers.
So what are the 5 secrets to getting the best personal loan for you?
Here they are, in order:
1. Get “two accounts”
It may seem trivial, but the last thing you or institutions want is to make a loan request without the awareness of being able to repay it. In this regard, it is a good idea to “do the math” to make sure you can repay the debt.
Start by determining the amount of money you need, keeping in mind that some lenders charge a commission of origin, which they deduct from the loan proceeds. Make sure you request an amount that allows you to meet your needs (but without overdoing it): ask for a maximum of 30% more but make sure that your assessment is sustainable over time!
To help you choose, our first tip is to use a loan calculator to find out what the monthly repayment installment will be. The Right Personal Credit configurator, for example, allows you to set the amount you want to receive and the number of installments to be repaid, in order to know the refund conditions BEFORE and consciously. You can play around with the numbers to get an idea of how much the loan will cost you and decide if the budget you have set is in line with all the management costs.
2. Check your paycheck
Most finance companies will ask you to prove your income to determine if you are able to repay the loan. As we said above, it is not a protection only for those who provide the loan but above all for those who receive the loan and could find themselves in the unpleasant condition of not being able to meet the commitment made anymore.
The loan application assumes that the applicant has at least an adequate income, and certainly an adequate income will give you the best chance of getting access to finance. You can check for free that your income falls within the “measure” required here, by answering our operator’s questions.
If your income does not fall within the required parameters, rest assured: all is not lost. We explain why in the next point!
3. Consider the different options
Depending on the credit situation, a guarantor may or may not be required to obtain loan approval. By guarantor is meant a person, natural or legal, who undertakes to take over the debtor and to fulfill his place in the event that the original debtor has failed to perform his obligation. The presence of a guarantor increases the chances of seeing your request accepted. The guarantor in fact represents an additional security for the bank which, in this way, ensures the repayment of the installments in the manner and within the time established in the loan contract.
You will also need to think about which entity to apply for a loan. For example, you may have difficulty getting approval if you are already reported as a bad payer. Some banks and finance companies, however, specialize in working by offering “smaller” loans that are easier to obtain and serve as an inexpensive alternative to classic personal loans.
4. Do not stop at the first “offer”, also consider other things
One of the worst things you can do when looking for a loan is to settle for the first offer, simply because it is not always the best. Take some time and look around, evaluate the best possible interest rate and compare the different types of loan to get an idea of what is most in line with what you are looking for.
You may need a loan of up to 2,000 dollars and then the best option could be an Opta Card that has ZERO fees for the first two years, ZERO installments management fees and ZERO commissions for refueling and motorway tolls. Find out more.
It is also likely that the bank where you have the checking account reserves the best loan terms for you. Do you already have an account with Banca Right? Consider talking to us first.
5. Choose a lender and read ALL terms and conditions
After making the necessary checks, our last advice is to choose the service with the best offer for your needs.
Depending on the type of product chosen, you may be able to apply for the loan directly online, as is done easily and safely on Right Personal Credit.
Each bank, credit institution or financing company is different in what information they ask you, but in general you need to provide your name, address and contact information, income and employment information.
You will also have the opportunity to view the terms and conditions for the loan, including the fees and the repayment period.
Read carefully to avoid hidden costs and other pitfalls and pay close attention to the so-called incidental costs, that is, some expenses that are not strictly related to the repayment of the capital or the payment of interest.
If you have read this far, you are truly ready to get the best loan for you.