When we want to request a loan from a financial institution, there are several aspects that we must take into account. This is a financing that many resort to when dealing with unforeseen events, reforms, studies, purchase of vehicles … But we must be cautious and observe the conditions of hiring before requesting the loan from the entity. Do you know your credit profile?
Aspects to consider to grant me a loan
When we want to apply for a loan, a series of questions may arise such as how much to borrow? In what period of time? Is it possible to repay the loan early? Will they grant it to me? Next, we leave you with a series of aspects and advice when applying for a loan.
How much money do I request?
Regarding the amount of money to be requested, as is logical, this will depend largely on the project we want to face. However, we should not ask for more money than we really need, taking into account that later we must return it together with the interests that have been generated over time; and more requested amount more interest will be generated.
Know your credit score
Knowing how banks value your financial profile can be useful when hiring a product with an entity. There are certain tools that can help you know this information, such as FinScore, the Fine Bank credit score. It is an impartial and independent index that serves to assess how you manage your money. This allows you to:
- To be able to achieve better conditions in the loan that you want to request. The more score you get, the greater the bargaining power.
- Negotiate with entities from you to you. .
- What can I improve? Following a series of tips and recommendations, you can improve your index, and access better conditions when contracting the loan.
- It tells you how much you spend, what your level of debt is and even the days you could live without any income.
The FinScore is obtained from the information of those accounts added to Fine Bank. The index starts from 0 to 900 points, and uses a multitude of variables such as: income level, net balance of your accounts, credit history, etc.
What am I going to use the money for?
Many times, loans offered by financial institutions are grouped into different categories, so that you find the one that best suits your needs, with specific conditions: debt reunification, reform, car purchase … this information is really useful for the bank, and you must justify it when applying for the loan.
Compare the different offers to get the best loan
It is important to search among the different entities in order to get the best offer. You can rely on tools or apps / marketplaces that help you choose the best conditions on your loans.
Stable income and solvency
This is the way we have to show that we can return the money they will lend us. For this reason, one of the requirements when applying for the loan is to have a stable income that allows us to meet the monthly payments that we will contribute for the repayment of the loan. In addition, our level of indebtedness should be low, and a good indicator is the 50/20/30 rule so that the sum of the basic expenses: mortgage, rent, loans … never exceeds 50% of your income.
Observe the interest rate
Analyzing the interest rate at which the loan is offered is essential. It is convenient to be clear if a loan with a fixed interest rate or with a variable interest rate is preferred. A loan with a fixed interest rate offers the assurance that the same amount will always be paid, while a variable interest rate when referenced to an indicator will vary depending on how it is modified.
Amount of the fee
It is necessary to take into account the amount of the installments to be paid, since a low amount is not synonymous that less will be paid, and it is possible that they will end up paying more interest. Based on the financial situation and the personal payment capacity, it is necessary to analyze whether a longer period of credit with the consequent lower installments, or a shorter period in which the installments are higher, is of interest.
Be careful with links and commissions
Many entities offer better conditions for their loans whenever a product is contracted with the entity. This type of linkage greatly increases the loan, so it is best to try to avoid them.
Institutions offer loans with low interest rates, but may carry rigged commissions, such as the origination fee or commission for early cancellation. You have to be careful with these commissions as they make the loan more expensive, especially for loans that are requested in the short term.
Observe all the fine print well
Read and ask in case of any doubt that can be generated to be clear and understand all the concepts of the loan. Be careful and be informed of any clause or small detail to avoid future surprises.