Payday loan are a form of credit that is highly sought by Brazilians for having lower interest rates compared to overdrafts and revolving credit. This type of loan can also be used for the purpose that the person wants, that is, less bureaucratic than the other types in the market.
Analyze your need to apply for a credit
Before applying for a loan, it is recommended that you determine why you need the money. For example, the loan can be used to pay for a family trip, or to do a work at home. From this, you should analyze what the need of money is for you compared to the debt you are going to incur.
The loans can be a great request in cases of emergencies and debt with high interest rates, but can also be negative for your financial life. So make sure that getting a loan is the only or best option available to you.
Beware of internet scams
Nowadays, the internet brings innumerable facilities to its users, either by the practicality of talking with the distant friends until the accomplishment of payments through Internet banking. This practicality of the internet has made it possible even to apply for loans without leaving home. Unfortunately, malicious people can use this facility for fraud.
The user should beware of offers of loans on the internet from unknown companies or off the official platforms. A common feature of this type of scam is the prepayment requirement for credit release. This is an illegal practice, and trusted companies like Good finance do not require it for their client.
Plan your budget
Many people focus only on the amount they will receive for the loan, and disregard the amount that should be paid during the contract. Do a loan simulation on the platform and observe the interest rate charged, it is paramount for you not to be caught off guard.
That way, the individual should make a budget planning so that he can pay off the debt while maintaining his quality of life. It is necessary to keep in mind your monthly income, your fixed expenses, and your investments. Financial planning should be a pre-stage loan agreement to prevent the debt from becoming a snowball.
Carefully read the loan terms
Usually, online loan platforms allow the user to make a loan simulation with no commitment. In case, the user is interested in requesting the loan, their registration and their credit analysis are done. After this operation, the individual will have access to the terms of the loan agreement for him.
Depending on the risk involved in lending the loan, the monthly interest rate may decrease or increase for a particular person. In addition, the credit operation charges other fees, such as taxes, insurance, registration fee. Before signing the contract, you should review the CET (Total Effective Cost) so as not to be surprised at the amounts charged during the contract.
Do not delay the payment of installments of credit
As mentioned above, the loan contractor must be fully aware of the conditions of the loan, including the terms of payment. Preferably, payment of the installment must be made in advance of a few days, as unforeseen events can happen. In addition, late payment implies the collection of interest rate.
The loan requested may be even more expensive for your pocket if the installments are not repaid until they expire. Not to mention that the lack of payment of loan debt can have more serious consequences