Personal credit: What precautions to take when hiring?

Finding the right proposal for you is easier with the free help of Poupança no Minuto: Talk to a credit intermediary and hire your personal loan now, saving yourself from bureaucracies!

What care to have when hiring personal credit?  

When hiring a personal loan, it is necessary to take some precautions to access the best offer on the market for you.  

It is possible to save on hiring this financing: not only in your wallet, but also headaches. This if you follow the process in an informed way.  

So, DECO PROteste warns about the following issues when contracting your personal loan:  

• "Attention to the solutions full of facilities offered on social networks" - You should be suspicious of overly facilitated proposals that promise a lot of speed or the granting of credit in case you already have incidents reported to the Bank of Portugal (BdP). There are entities that are not authorized by the BdP to grant or mediate credit processes, so you should always check beforehand if they are reliable;  
• “Calculate your effort rate before applying for credit” - Beforehand, you should analyze if your effort rate can support one more fixed monthly payment: to do this, add up all the payments with the new one, divide by your net monthly income, and multiply by 100. The result should not exceed 35%.  
• “Try to find alternatives” - You should not try to access a personal loan as a way to deal with expenses that you cannot afford. This is because if your budget is already strained, you will hardly be able to get approval for a personal loan and will only worsen your monthly expenses (with added interest). "For small amounts, if you are sure that you can pay off the credit card in full, you can settle the purchases you make in the previous 20 to 50 days without paying interest. Consider postponing the purchase until you have all the money to pay in cash. Another solution is to take advantage of interest-free financing campaigns that certain stores offer," are the tips from DECO. Additionally, you can renegotiate the current conditions of loans you already have, or take out a consolidated loan that combines several financings you have so that you end up paying a single, lower monthly installment.

How to find the most advantageous proposal?  

If you conclude that you have the ability to pay a new monthly installment on a personal loan, there are some factors that can help you access the most advantageous proposal for your situation.

First, you should look for several simulations from different banking institutions and carefully analyze the conditions offered by each one. Do not hire the credit on the first proposal presented, without evaluating others. It is the easiest way, but it may not be the cheapest.  

Next, know that "banks may charge fees for credit analysis and hiring." In other words, some entities may add to the amount requested in the loan, the costs of commissions, insurance, and stamp duty on the use of credit. Therefore, the organization's recommendation is that do not add up, as you will pay interest on that amount, which will increase the total cost of credit.    

Finally, if you want a loan with the lowest cost, you should choose the shortest repayment term, with a comfortable installment. This way, you will pay less interest. But if you want to pay less in the short term, having the lowest possible monthly installment, then you have to opt for a longer repayment term (which will increase the amount of interest to be paid).  

Did you know that you can avoid all the bureaucracy of this hiring process? If you hire a credit intermediary, such as Poupança no Minuto, you have access to a free service that takes care of everything for you until the money is in your account! Agents collect various simulations and guide you to the proposal that suits you. Save money, save time, and avoid headaches. Get in touch with an agent now: