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What are loans without payroll?

by floreenathomas
What are loans without payroll?

Despite having good financial health, no one is exempt from having an event that destabilizes their finances. Requesting a loan is one of the most common ways to face expenses that exceed the economic capacity to solve the eventuality with the typical budget.

The advice is always to ask for a loan that suits your needs. In this case, we are talking about a personal loan. These financial instruments are loans of money granted under the condition of returning it together with the interest that has been agreed at the beginning.

This type of credit that does not require collateral or some guarantee, and is not deducted directly from the payroll, is granted very quickly since only some factors are taken into account, such as your rating in the credit bureau.

How to request a personal credit?

Before requesting a personal loan that suits your needs, pay attention to these three keys:

The amount of money you will borrow

It is common for banks to offer you specific amounts, but the financing limit will depend on your profile as a client and the destination you will give the money to. Remember to never ask for more money than you need or can afford. It does not matter how much you can pay.

The interest you will pay

Surely you have heard that interest is the money price that slows you down. This assertion is based on the fact that the bank charges for lending a certain amount of money and running the risk of non-payment. However, it is not the only factor since the banks ask to cover the commissions. The interest rate also varies according to the period it will take to pay.

The payment period

This factor is one of the most important since it is about time we will return it. Most credits of this type contemplate annual periods that may vary depending on the product type.

It is crucial that you pay attention and carefully calculate the time in which you will repay the loan since, when a term is longer, the monthly installments will be smaller, but in the long run, you will pay more in interest. A shorter time will increase the monthly payment and make the loan cheaper.

Tips for requesting a personal credit

The first piece of advice is to repay the borrowed money as soon as possible. You should not forget to ask about the option of making contributions outside the monthly payments since if it is not enabled, some penalty may be contemplated.

The next tip is never to be late on payments. You must pay the monthly fees within the term, without being late. The consequence may include penalties that include interest for late payment, which is usually higher, or collection costs.

Another important recommendation is that you evaluate the financial products you have within your reach well. For example, initially, a personal loan may sound like a good idea to buy a car, but there are products designed specifically for that so that it may be more convenient for you.

Finally, we always advise you to review your borrowing capacity. It is about not exceeding a certain percentage of income in financial obligations. Borrowing capacity is the name by which what can be paid without having to affect your lifestyle is known.

We are talking about the ability to pay as one of the critical factors that determine the possibility of covering your debts in the short term. To know precisely how much obligation you have, you must make a detailed assessment of your financial situation by calculating your fixed expenses and knowing how much money you have to deal with debt. 

Remember that personal loans are not extra money. They are financing that must be used with caution and returned promptly. As a financial tool, they are used to solve an eventuality or carry out a specific project such as a party or home remodeling. Analyze your situation well before asking for one and follow the advice we have shared with you!

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