Before applying for your new personal loan it is very important to calculate how much you can actually pay monthly.
“Do you want to apply for a personal loan? OK! No problem but you knew that it is very important to calculate how much you can afford monthly as this will affect your finances for good or bad, know which loan option is best for you. “
Maybe you did not understand even more credit card is also personal loan, different from the bank loan but still you can manage to advance money with it. Either way think about whether it makes sense to borrow money from your bank, financial or online site.
In Brazil we are experiencing moments of economic uncertainty, increased cost of goods and consumer accounts, the cost of living has become more expensive – many people are choosing to cancel cards, others pay all their debts, clean their names, and others are borrowing more to solve all this.
How much can you pay? Did you know that about two-thirds of the people who pay their credit card bills every month come back, a must again.
Before applying for your new personal loan it is very important to calculate how much you can afford monthly, the loan option you choose could affect your finances for better or worse.
Deciding if you should apply for a personal loan
There are some questions that will make all the difference that you need to respond to yourself before you apply for personal credit and borrowed money funded at financial institutions.
You should ask yourself if:
- You even need to finance money with loan
- You have other alternative ways to get the cash you need
- You have eligibility to pick up which type of loan
- Are you willing to pay how much interest rate to get the money
- You can pay the money you are planning to borrow
Once you have chosen a type of personal loan, you need to register online, by phone or by email. See how the loan application process works and what you need to do.
What do you need to report? Before applying for a loan you must:
- Detail banking information
- Enter current address and previous addresses
- Give details of your job or type of income
- Detail personal data, eg RG, CPF, date of birth, etc.
You should also check for your own account if your credit report and history is without negative inscriptions or restrictions, understand that any record of debtor can hurt your chances of being approved or worse the cost of the loan.
Be wise, then assess whether you meet the eligibility criteria, including the age limit, the loan conditions, and the minimum income requirement.
– Once you have chosen the correct modality or category of personal loan, possessing all the information ready and needed, you can begin the application process.
What are the eligibility criteria?
In order to take out a loan the applicant needs to fit the conditions of the product or financial service that lends money, that is, you must meet certain requirements when applying for a personal loan.
Private lenders, government agencies and financial regulators like the Central Bank usually set rules on how, who and how borrowers will have access to credit, loan, and financing.
If you do not meet the eligibility criteria (to be approved) of a lender, it is unlikely that you will grant your claim.
Can you use a loan for any purpose?
No, this is another relevant detail, there are some restrictions on certain types of loans.
For example, you can use personal bank loan money to spend, invest, play, give to friends, but in a home loan, auto loan, retirement, construction and for studies, should have that end.
Apply for an uncomplicated loan
You can apply for an online loan on websites, applications, credit platforms and companies acting on the internet, you can do over the phone or go in person at a bank branch, but not all lenders will offer the same options and conditions.
Whichever way you will apply for your new loan, the process is pretty much the same:
- Fill out a registration form : this informs the lender how much you want to lend and for how long, all of your personal, employment, and income data gives the lender permission to perform the credit check.
- Wait for the lender to perform the assessment : The lender will check the details that you have informed about you, and will check your credit record and assess how much risky it is to lend money to you. They also check fraud lists and confirm details of your current and previous address, plus dozens of other factors.
- Get the lender’s decision : After the part of the lender completed it will inform you if you are willing to grant the loan that was requested, what the interest rate and the terms released for you to hire. At this point, you can choose to accept the proposal and move on with signing the contract or abort the request.
Make quotes and comparisons
Some lenders offer a quote with more than one company or banks lender once you go through the credit check, the proposals tell you how much you would pay on each.
Proof of your income and income
As part of your application, you need to include how much and how you earn your salary or income each month, but not all sources of revenue are accepted by the lender, so check before signing up.
Any of the following may be excluded from your loan application:
- Payments of unauthorized benefit for loan discount
- Unreported sales profits
- Assists family allowance, alimony
- Prize and participation bonus for unsecured profits
This is a short list, so always check that rent is accepted by the lender before applying for your loan.
You need to be able to prove any kind of revenue that you report on your loan application – this is usually done by providing access to bank statements or payrolls (pay stubs and checks) showing your winnings.
If you are self-employed (self-employed loan, see here), you may also have to send extra documents to show the truth of your earnings, some lenders may completely exclude the income of self-employed workers (DECORE or IRPF) if they decide this.
You need to have at least a full year of income proven and audited by tax or certified accountant to apply for a personal loan if you work for yourself.
What happens after applying for the loan?
If you have been approved and accepted the loan offer, you will have to sign the loan agreement. If you made the application by online application, sometimes this can be done digitally, otherwise follow the instructions of the website or the credit platform that you made the request.
Once you sign the agreement, send proof that it is you really (take it self), the lender will transfer your loan to your bank account. This can only take from 1 hour to a few hours, but can take from one to two days – depending on the company.
After the money is transferred to your account, your first payment will usually be the next month or a date you choose on the system.
What if the request is denied?
If your loan application is rejected, you must:
- Ask the lender or institution to explain why the refusal
- Check your credit report for any anomaly
- Wait for other loan applications
- Try to clear the constraints of your report as soon as possible
- Recover your credit by increasing your credit score
Not all credit options are good, reliable or secure. If you have a bad credit score then you might be tempted to use a financial, bank or loan company to negatively, especially if you have few credit options.
However, this modality is expensive, make the request only if it is urgent or in case of emergency.