What is it and how can I use a personal loan?
You are free to use the resources you receive from a personal loan any way you wish, of course this involves beyond discipline to properly use the money, such as having to repay the loan for the next few months without wavering in payments.
This time I will not be making a list of what can be done or not with the loan money, certainly you are looking for financing, you know very well what it is for and how you will use the amount you request from the lender of your choice.
How are Personal Loans Requested?
A personal loan can be requested in several ways:
- On sites and platforms over the Internet
- By phone, email or SMS
- For android or iOS apps – 100% online
- Direct in stores and offices
- In bank agencies
- By phone, email or SMS
- By credit or debit card
The list is much larger than this one, but it is pretty much the same for all existing modes. You request by sending or registering for the loan, send the documents, the analysis is done, the bank checks the credit amount and makes a loan offer.
If you accept (approved), the cash resources will be transferred to your bank account and you can use them the way you want.
What are the conditions for taking out loans?
Loans are now more flexible and both people with good credit history and negatives get good borrowed amounts, up to R $ 3,500 / R $ 5,000 and up to R $ 50,000 reais for those who have a good score and compatible income.
The exact value of loan approvals are variable, there are people who get extraordinary amounts as far as interest rate, they also vary depending on income, debt accumulates, margin, credit history and dozens of other factors.
Maybe this is not your interest, be that of borrowing money, if you take this shortcut, here you find a loan company, in this loan comparison table you can choose what you want as a lender.
Options for Hiring Personal Loan
Well, continuing .. There are many different types of free loans to acquire in banks and financial. Knowing these options can be advantageous to aid you in making decisions regarding the type of personal loan or financing that will be best for your finances and goals.
What is Open Loan? This type of credit are those that a person has quick and easy access and can request to use indeterminate times, in some cases even without limits. It fits in this type of credit cards and overdraft (credit limit) which are the most common credit lines of open loans.
Be sure to understand that both credit card and overdraft have an established credit limit, but the pre-approved amount can be used up to the maximum at a time or the measure of financial need.
In both, you advance money as loan and as you return what you have spent, the balance returns to the limit, and so on in endless credit cycle. In the open loan you do not have to request or fill out any registration at the time of using it.
What is closed loan? The closed loans are different from the open ones, in this modality, you can only request once or within the commitment of your income, if you want more money, you will have to request it when you finish paying or when you have the income margin for it.
In the closed loan as you go paying the debit balance the debt is getting smaller.
Real estate mortgages (secured loans), vehicle financing, student loans, we can also include payroll loans, these are the most common types of secured loans that we know of.
What is secured loan? They are loans that necessarily need some guarantee to release the requested credit. Fits in this type o:
- Real Estate Refinancing
- Auto Refinancing
- Real estate financing (mortgage)
- Car financing (sale)
It is worth mentioning that in case of non-payment or when becoming defaulter, the borrower may lose good to the lender who in his right uses the good to settle the debt of the loan. By offering the lender less risk, the terms and interest rates of the secured loan (secured credit) are lower than those of the unsecured.
A title loan, pledge, loan with check, anticipation of receivables or any transaction where it requires assets, papers, bonds or assets are considered secured loans.
What is unsecured loan? This is quite simple, the name already pre says, it does not require any collateral, asset, asset, title etc as collateral. The granting of this loan in general are more bureaucratic to hire. Find them at banks and financial institutions with much higher interest rates.
We can call it personal loan. Its approval has more rigid analysis and depends on information of credit history, credit score and proof of income.
In cases of borrowers who become defaulters to not honor the repayments of an unsecured loan, the lending institution usually resorts to the protection agencies by denying them by inscribing them with poor payers. They also hire collection companies and prosecute the debtor.
The revolving loan is a line of credit available to credit card consumers so that they can make the payment of the invoice with a different value from the total on the due date. To make it clear, we use revolving credit when we pay the minimum amount or a fraction of the invoice.
But we have a big problem in this mode of payment made in the rotary, when you choose to pay a lower value than the total of the invoice – charges, fines, arrears and interest are accrued on the next invoice generating more costs and may even create the ball effect. snow.
The revolving loan is not one of the best credit options to make use of even when needed.
Loan on overdraft
Overdraft is temporary type of loan, it is widely used by people who have bank account for being practical, fast and easy, just pass the debit card and go! However, one should not ignore the high interest rates charged during the period of money used.
The well-used overdraft can be an excellent solution for emergency exits and more urgent needs, but used in a random and irresponsible way, it can be a fuse on the way to blowing up a bomb in the finances.
We can call the “pre-approved loan” or “temporary loan” overdraft, usually a bank or a cooperative makes this line of credit available to be used at any time (instantaneously).
For many people, overdraft is more of a hazard than a benefit.
Oops! Let’s not talk about anticipating loan repayment (discharge or anticipation), or loan scams that require prepayment for release. Let’s understand about the anticipation of receivables to get money.
In anticipation of receivables you receive the desired amount today for a security that will be paid on 15/30/45/60/90 days.
Many companies opt for prepayment of receivables as it is an easy credit operation to get the money they need for now and not have to wait for 30 or 60 days when they would receive the title.
You will find several financial institutions that do this type of credit in advance: banks, factories and companies acquiring credit card services etc. When you need money, this is an inexpensive way to borrow money at a low administrative cost.
The payday loan is a hand on the wheel, easy to pick up, quick to receive, bureaucratic free, meets negatives, in short, it seems to be the best loan of all. It was created for borrowers who need borrowed money and can guarantee payment at the discount on their own salary or benefit.
Interest rates in Brazil are expensive and in order to get better rates, you have to do a lot of research for a line of credit that fits your profile and does not compromise your personal or household finances.
But there is a detail, the payroll is not for anyone, can only ask for this modality that is:
- Bank employee and bank employee
- INSS beneficiary pensioners and beneficiaries
- Servers and civil servants from all walks of life
- Military of the Armed Forces – Army, Navy and Aeronautics
For those who want to apply for personal credit, the cheapest modality today is the payday loan, eliminating the secured loan, of course! The difference between this line of credit and the others is in the way of repaying the installments to the creditor: the payee’s payroll has the discounts of the installments directly on the payroll, salary or benefit of the applicant.
Not much is said in this way, but the (personal credit or personal loan) is also known to be an unsecured credit line, that is, it has no direct discount on the payroll.
The personal loan is one of the most sought after financial products, it is offered by banks, cooperatives, authorized financiers and even by private lenders like moneylenders.
To make a personal loan application is quick, easy, dependable and secure. On sites and online platforms, just fill out forms with personal data, choose the value and number of plots. After analysis and approval the money is deposited in your bank account between 24/48 hours.
When hiring a personal loan, do not forget that you will have to pay additional fees in addition to interest, these fees vary between several known credit and financial institutions.
Loan to be avoided
It is obvious that we all have choices and can make their choices according to their needs, it is a civil right. However, there are some types of loans that should be avoided at all costs.
Do not forget to look at the pros and cons on different lines of loans – it’s smart action.
In addition to predatory lending such as loan sharks, you also need to be careful about scams and online scams involving misleading lending deals, stay tuned to “companies” that require advance money amounts and deposits to get you the requested amount.
Needless to say, this practice is out of the law. Do not let yourself be seduced by lovely offers that promise easy and uncomplicated loan even you having the dirty name equal to the chicken coop.