June 12

6 Tips Remember to ask for a personal loan

The context of the current economic crisis has boosted the number of people who are in need to apply for a personal loan to make ends meet.

While a personal loan can help us to meet our obligations in the time that we the grant is a financial product that should not be taken lightly, since the delay in payment of it can trigger severe problems They can range from the embargo payroll to housing.

Therefore, before hiring a personal loan recommend taking the following 6 tips:

Compare loans offered by different financial institutions in order to find the best deal that suits our needs.
Determine the urgency with which the money is needed let us know the type of loan you need. In the market there called fast mini loans and loans, both are granted almost immediately and do not usually need to change banks so that they can hire.
Define the relationship that you can have with the company since many loans have a preferential interest rate for customers whose payroll receipts or contracting insurance. If you have already domiciled payroll, the interest rate may be higher than they offer.
It simulate the monthly payment and loan amortization table, so be sure how much will be paid month to month.
Calculate the capacity to pay. The monthly fee of the loan plus monthly installments other loans that are paying (including the mortgage) may not exceed a maximum of 40% of monthly income.
Monitoring committees. In as far as possible prevent the commission of study, so that if the loan is denied have to pay nothing to the state. Furthermore, it should seek loans with low early cancellation fees for cases in which it is desired to early repayment of part of the capital.

Finally, it should always seek professional advice to answer all questions, as offered for free Bankimia through its financial forum in which users pose questions that are decided by a panel of independent experts.

May 29

How to find the best personal loan

Sooner or later, even if you are a person who hates debts and do everything possible not to have any, it is likely to need to hire at some point in your life a loan.

A car breakdown at a bad time with a vacation that had left more expensive than expected and an overall increase in spending had to be done in a delicate economic situation for the coming months.

What should look out for when you borrow?

We will see a number of golden rules you should follow if you want a loan that really helps and does not become a detriment to you.

Throughout this article we will see the following:

The main characteristics presented a loan.
The points you have to consider before applying for a loan.
The keys to hire the best loan for your needs.
Some tips to lower the cost of borrowing.

Basics of a loan

Before getting thoroughly with tips and guidelines for choosing the best loan is worth knowing the different elements that make a personal loan. And knowing how it works will be easier to know that you look for when hiring one.

The amount: The amount that the bank puts at your disposal. The minimum amount of personal loans is about 3,000 euros although there is no legal limit. Depending on the amount requested and the interest rate will be. In all cases a greater amount, the more interest you will pay.
The interest rate: Indicates what to pay the bank for lending money. Personal loans are contracted at a fixed rate, unlike mortgages. The types of variable rate loans tend to spend longer and fixed rates for short term loans.
The time: The time during which the loan will be paid. They may be months or years. As a rule the minimum term is 6 months and maximum of 10 years. Keep in mind that a longer period plus interest will be paid.
Commissions: The commissions can file a personal loan are:
Evaluation fee: You pay in respect of analysis and study of the loan to see if you are granted or not.
Arrangement fee: is paid at the time of entering into the transaction and is a percentage of the amount borrowed.
Commission for changing conditions or against collateral: You pay when you make a change in the initial conditions already agreed.
Commission for early partial redemption: You only pay if a partial loan repayment occurs. It is a percentage of the amount redeemed.
Early termination fee: Like the previous commission, is paid if the early repayment of the loan is made and is a percentage of the amount remaining to be amortized.

Typically, these committees discussed as the last item, according to the guide on personal and consumer loans the Bank of Spain, have a maximum percentage that can not be overcome. For example the early cancellation fee may not exceed 3% for fixed-rate loans or 1.5% on variable rate loans.
Basics before hiring a loan

As important as knowing borrow and what to look is knowing when to ask for them. Sometimes the solution to apply for a personal loan is the simplest but not the right one. I explain some keys to keep in mind:

Do you really need ?: Are you going through a difficult economic time and really the only solution is to borrow from a financial institution? Are there other solutions? I ask a family member or friend? Looking for extra income?
Can you deal with the payments on a loan ?: Be absolutely certain before applying for a loan you can return it. Studying in detail your employment status and monthly fixed expenses you have. In the latter the free tool that offers Ahorro.NET can help enormously. If you have any doubt it is better not to apply for the loan.

The keys to hire a loan

If after the above it has clear that it is best to apply for a loan you should follow these guidelines to hire the best possible loan:

1. What do you want?

It is essential before you start looking for a loan that you are clear about the type of loan you need. It is to buy a car? To make a vacation? To perform a master? Depending on their purpose greatly change the interest rate, the amount of money you can request or the maximum term of repayment.

2. Study the market for personal loans to fund

Do not stay with the first option you see. On the internet there are numerous financial comparators, as Bankimia or Helpmycash, showing you personal loans that are being marketed now in the market and that can facilitate you finding the loan that best suits your circumstances.

3. Do not apply an amount that exceeds 35% of your monthly income

Remember that the sum of the quotas of all your debts (mortgage, loans, credit cards) should not in any case exceed 35% of your net monthly income.

That is, do not order more than you can pay per month. Flexible quotas that are able to return without much effort. It is always best to apply a smaller amount you can afford without numbers.

4. First, go to the bank where you already have contracted other products

In most cases, the entities with which you work and it’s easier than you offer better conditions to recruit financing products.

5. It is important that you take notice carefully in the interest rate

This marks what you’ll pay at the end for the loan. The lower the better, of course, but be careful that a low interest rate not go together with generous commissions.

Personal loans have an interest rate of between 8% and 12%. There are types of loans for very specific purposes with lower interest rates, such as student loans can have interest rates of 6%.

6. Look closely at the commissions that are the point normally expensive loans

Commissions should avoid are the study commission, the fee, the partial redemption commission and the commission for early cancellation.

Study and openness are very similar because they come at the beginning of the loan simply to formalize. Therefore, it is easy that at least one of those committees not charge you.

If you plan to make partial repayments of the loan, that is, you pay the loan in full before completion, it is important to try to reduce or eliminate fees for partial repayment and prepayment.

7. Read the contract carefully personal loan

With focus on those points you do not understand and have you clarify them before signing. Beware the trap deals. At this point, it pays attention to default interest if you can not deal with any quotas or repay the loan in the stipulated time.

8. During the first 14 days you can cancel the loan without cost

Do not forget that by Law 16/2011, of June 24, you have 14 days during which you can lie back on hiring credit. Without explanation, either because you have solved the liquidity issue for you solicitabas credit or because there at some dubious contract clause. Cancel the credit during the first two weeks does not have any cost for you
How to reduce the cost of borrowing

To reduce the costs of a loan there are two fundamental ways:

Payment guarantees: The higher your creditworthiness easier the bank will grant you the loan at a lower interest rate or better terms. This aspect can be increased through ownership or other property or through a guarantor.
Relationship with the entity: Generally, the more financial products have a certain entity be better loan terms. Household payroll, hiring credit or debit card, home insurance or investment products can help improve the quality of the loan.

You can improve both aspects, that is, payment guarantees and bonding with the company, hiring a payment protection insurance.

Before the insurance payment protection must be studied thoroughly if the extra costs associated with the insurance compensate hiring but in certain cases it may be a good choice.

We hope we have clarified many of the questions you might have if you are thinking of applying for a loan and help you hire the best loan to suit your personal needs and circumstances.

April 29

Looking for a loan? 7 tips for choosing the best personal loan

Ask for a personal loan is very common and increasingly simple. Fast and at your hand for your projects, illusions and ideas money. But finding the perfect loan that suits your needs and not end up drowning can be trickier than it seems. Kelisto gives 7 Keys to choose the best loan available to us.
1. WHAT DO THE LOAN?

The first thing to do when asking for a personal loan is ask yourself why you want the loan. The institutions offer specific products for the purchase of cars, for reforms, studies, etc. These loans can offer targeted better conditions than other more generic.
2. MIRA ‘first at home’

Check if your company offers financing on more favorable terms for products that already have hired before looking at another bank.
3. EYE WITH LOANS ‘INTEREST’

Even if a loan is advertised as ‘no interest’, for this to be true it is to have a 0% APR. If you want to find out how much you will pay, you use calculators as the Bank Customer Portal Bank of Spain ().
Related

Bank of Spain believes that the improvement in the financing of SMEs contributes to support recovery

4. BEWARE OF COMMITTEES

Pay special attention to the fees applied the bank, and which will increase the loan and are essential to really know how much you will pay in the end.
5. LINKING PRODUCTS

Keep in mind that, although product tying lowers the interest cost may these do not compensate. To assess it, the bank has to inform expenditure involving products You hire.
6. PAY YOUR WAY

As for the repayment period, select a period that allows you to pay your debt comfortably, without thereby skyrocketing interest to pay.
7. WATCH THE PERIODS OF GRACE

Watch vesting periods: it is interesting that the loan you choose to include them if there be any unexpected, but welcome you to avoid them as much as possible because they increase the interest to be paid at the end of the loan.

March 2

Tips to apply for personal loans without warranty forms

If you need money to cover your basic expenses, for your wedding, for a holiday, etc. you’ve probably considered getting a personal loan, you do not have any collateral such as your home or car, and that the lender could recover in the event of loan default.

Since the lender does not have any collateral for the loan, it will have a higher than a secured loan interest rate.

Personal loans can be fraught with pitfalls. Used correctly, you’ll have a better position compared to other options we can find in the market as overdrafts or pawnshops. However you must be alert as there are many lenders who have no scruples and may try to incorporate abusive fees and exorbitant interest rates.

Here are some tips to find personal loans without paying too much.
What is your credit score?

Since you do not put any collateral, the loan terms will be based on your credit worthiness, ie, your credit history, your income and other debts you may have.

If you have a good credit capacity, you can probably get a personal loan with good conditions in your current bank. If your score of credit is not perfect, do not be tempted by fast loans that “do not require a verification process”. Lenders usually offer these types of loans often charge abusive fees can often be avoided.
Where can you get a personal loan?

You can get personal loans primarily in the following institutions:

Banks
Credit unions
Lenders P2P (peer-to-peer)

Your best bet may be a credit union. Because they are non-profit and can charge you a lower than bank rates.

Even if your credit score at least is low, a credit union can help you.

Another good option is booming are known as P2P loans. While rates may be slightly higher than in a credit union, you might find it easier to access the loan.

Almost all personal loans require verification of income, some will also require the state of your bank account or tax return.
Finding the lowest personal loans with rates

If you need a personal loan, the optimum will pay as little as possible for him. Here are a few tips for finding the cheapest loan for you.
Compare all options

Is it better for a cheap personal loan or use a credit card low interest?

If you have a good credit score and can repay the loan in 12 or 18 months, you can probably get a credit card that you charged a 0% interest. Before going to the bank to check out the conditions that he may offer a credit union.
Find a guarantor

If you have a bad credit score you can search for a person to act as guarantor to improve your creditworthiness and the loan guarantees. With this you benefit from lower fees.
It incorporates guarantees

If you have a house or a car you can consider using them as collateral to get better conditions. A home equity loan, is usually cheaper than unsecured personal loans. Bear in mind that if you face the loan and you put your home as collateral could lose.
What to keep in mind with personal loans

Personal loans, secured or not, can be plagued clauses to which we should pay attention. These are some of the things you should consider.
Penalties for early repayment

When a lender tries to estimate the amount of money they will receive from a loan, usually they assume that you will have to pay interest until a certain date. Paying the loan early, and therefore limit the interest paid, throws overboard its calculations.

In order to keep the numbers of the lender, some will charge a penalty if you return the loan before the due date.

Be sure to look at the contract if any such clause and see what dates and what conditions apply.
Expenses associated with the loan

Some lenders may charge you for management expenses or education expenses. Ask about this type of expenditure and check out the contract to see if they are there or not. In addition there may be other costs associated with the loan.
Accidental overdrafts

If you link your account to a loan to make payments automatically you could be in danger overdraft. If this happens you will have to deal with the costs arising from the overdraft. To avoid this eliminates the option of automatically paying and / or set an alert on low balance in your bank account.

February 21

Four tips to refinance loans

Since the year began, we have been hearing that funding will be unlocked. The last post is dedicated to see the expected housing situation in 2014, always with the ultimate goal of applying a financing operation, which complement today with the other major problem of most of the population: Refinancing operations after the decreases in pay or have been added to the list of unemployment. In that case these four tips to refinance loans can help.
1) Provide the bank with real information about your personal and financial situation.

Banks want to know if you and your partner are working, and no longer serves to “fix” a list. They will ask the working life to see if there is someone quoting for you on the social security and all the loans and risks that you keep. Right now, they are useless tricks to mask the reality: the Bank of Spain has all the information, and you’ll be forced to sign the authorization for inspection by the bank.

2 Includes financial cards you have lying around.

We all know that those damn cards as needed on the other hand, apart from being a form of financing face is the first thing we have to organize when we refinanced our loans. Sincerate to the bank, and so explain it for inclusion in refinancing. The biggest problem is that banks refinance their cards, not the other ,. So, notes, and transfers charges from one card to another where you go to refinance your primary operation.
3 Do not deviate order or you change the target of the operation.

Do not go to the bank to present the idea to refinance your loans that you are telling a reform of the house because the “white lie has short legs”. As easy as ask the invoice of the work, and if you succeed, the bank could not let you touch money and to transfer to the supplier that you have searched. Even if you have been looking for life, and have agreed with the supplier false that you return the money transferred to your account, please note that banks are playing with fire. If you get caught, forget the most important thing you need to perform a risk, your personal credibility.
4 If you have personal or professional problems, not hide.

If you have personal or professional problems, keep in mind that the desk of the bank employee is like the confessional. What happens in the bank is in the bank. And not because your privacy is protected by the mandatory confidentiality between client and bank, but because the bank is a professional who have heard “fatter” than yours stories. And I explained that personal credibility is paramount in these operations.

And do not forget that, to refinance, if an individual, want to mortgage guarantees. If it’s a mortgage, they will want more personal guarantees.

January 9

Tips for the best personal loan request

Personal loans are a quick and easy source of financing that can take us out of a financial bind. But also keep in mind that they are financial products that can be very expensive, so you have to think through your request.

Before asking a personal loan, calmly analyze your financial situation and determine whether or not a personal credit will be the solution to their problems. Although personal loans are helpful at certain times always we have to keep in mind that in most cases the refund money is a lot more than they gave us.

Be realistic about your affordability and utility in which it will invest the money. Is it really a necessity? A personal loan can be for yourself can afford maybe one or another time when really we are more at ease financially.

If we decide it is appropriate to request a personal loan take account of the form and return conditions. Sometimes it is better for a given economic situation, but pay a lower monthly payment for longer time.

Analyze in detail the advertising of financial institutions. Personal loans are not always what they advertised and can lead to deception with the amount of interest to be returned.

Look for a reputable financial institution. Be wary of small entities that offer unsecured personal loans. Also compare different products of all entities. The main parameters that must be set is the APR, equivalent to the actual cost of the loan, the interest rate, fees both opening and cancellation and if no option to hire a safe.

Once you have followed these steps will really be able to decide what is the best personal loan that fits our need.

November 23

Advices before applying for a personal loan

There are some tips handy to have in mind when applying for a personal loan. The figures indicate that the number of approved personal loans has been declining in recent years by the increase in delinquencies. Many people have fallen into default by the hardening of working conditions and have not been able to cope with the fees owed. As a result, cash and banks have stopped lending to people to avoid many more defaulters.

Some of the best practices when requesting a personal loan arising from common sense, such as limited to seeking the necessary amount of money on the loan.

It is advisable not to splurge on this detail, because we have to deal with fees based on the amount of money they ask for. For the entity to give us a loan, we justify spending appropriately. There are reasons that influence more positively on this crucial step, such as borrowing for education.

We recommend before applying for a personal loan

We must show that we have fixed income with which we can pay the loan installments. In this step, have a payroll is very useful. In case of not having a stable job, the chances of getting a personal loan become practically nil. If this is your case, you should consider other forms of financing that will be most appropriate, such as online payday loans or microcredit, according to the needs you may have at any given time.

Today, it is not easy to get a personal loan but it is not impossible. If we have a fixed source of income, we can find an entity to lend us money under certain conditions. Should be able to receive money from more than one entity, it is advisable to study the conditions carefully to determine what is best for us.

As a rule of thumb, we must be sure of being able to pay the fees before applying. In addition, we try to pay the lowest possible number of shares. In this way, we will avoid that we spend too much interest bill and will face the loan as quickly as possible. To achieve this goal, you need not be delayed in the payment of installments of loans, as they will be charged as applicable surcharges.

Repayment insurance and payment protection are essential in this type of loans, since in the event of death the debt will be repaid by insurance. Such policies are mandatory hiring and we can very well cover their backs, as if to stay unemployed receive assistance to address personal loan dues. It is highly recommended to study some of these policies prior to contracting the loan, we can find suits with a simple investigation.

If we can provide some additional security, the easier our personal loan application is approved. This type of guarantee is a good or a guarantee to support us in the application of the personal loan. Always good to introduce some additional security because the bank will recognize the lower risk involved in the loan grant automatically raising the likelihood that we will accept the loan.

These tips on what to consider when applying for credit are as basic as important. They are guidelines that are based on the common sense and highlight some of the key on loans of this type, some important details that should be always keep in mind to get the most out of our money. If you remember these simple tips when you ask for a loan, it is more likely that we are making good use of our capital. Learn to be responsible with the use of our own money is the key to success.