Credit financing solutions are the most accessible for the different structural stages of life (examples of housing and personal loans). There are, therefore, several uses for the different types of personal loans, but do you take advantage of them as they should? Learn how to use personal credit in the best way through this article.
Remodeling or house decoration
There are credits designed to make works or decoration at home, but you have to take into account that these specialized products may most likely have higher interest rates than a personal loan.
Specifically for these cases, credits to do works at home may also require the client to submit more documentation: remodeling plans, official receipts, among others, before the money is awarded. In this way, it becomes very important to know how to use personal credit.
Read more: The best personal credit to renovate the home
On the other hand, by getting a personal loan and later using it to have a new kitchen, for example (and / or even for renewable energy projects), you will get a more flexible APR and, at the same time, you will not have problems with your request.
Weddings, baptisms and other family events
Marriages, for example, involve some significant expenses, from the photographer to the catering service to hire. In this sense, a personal loan can do much for itself in relieving this financial burden.
Keep in mind, however, the importance of choosing a loan with the best terms, according to your needs:
Compare personal credit online
Personal credit for going on vacation
Rest is synonymous with holidays and despite the numerous promotions on the travel sites, the truth is that spending is not limited to airfare and accommodation. So, to ensure you deserve peace of mind on your vacation, fast personal credit can be a great ally, as you can find flexible, comfortable options with a simple membership process.
How to Use Personal Credit to Start a Business
If you want to let go of the entrepreneur that exists, there are several types of financing that can be obtained, either with private investors, friends and / or family, or through so-called investment subsidies (these are generally granted by the Government and / or even related to assets), among other forms.
Microloans can also be a good option as they allow you to have support in job creation, controlled interest rates and get follow-up throughout the development of the business.
On the other hand, a personal loan can help you get start-up capital to start the business, but to do so, you need to fit into the generally more demanding criteria to get it (here it is really important to know how to use personal credit ). Personal loans are unsecured loans, so you will not have to put the deal as collateral: one less worry in your long walk.
Refinancing and Debt Consolidation
When you take out personal credit to refinance or consolidate a debt, whether from a credit card or otherwise, you should be aware that you are only moving the amount you have for a different account. Be aware of the market and consider only refinancing in this way when it is to reduce the annual debt rate of your credit card, home loan, car loan or other. Only in this way will the total amount payable be considerably reduced.
Consider also whether it will not compensate you to take out a consolidated credit to cut down on the monthly installment of all your loans. It will be easier to focus on one payment than managing multiple at the same time.
Learn more: What you should know about consolidated credit
In short, we recommend that the amount borrowed is only what is needed to achieve your specific goal. That is, borrow money if you really need it and avoid asking too much not to pay extra fees.
Once you have settled the value to request and its purpose, we advise you to look for the best offer in the market. Each credit institution or bank will have its decision criteria in the allocation of funding. The more you research, simulate and compare, the easier you will find an option with reduced APR, monetizing and getting the most out of your loan.
Finally, pay attention to the bureaucratic costs of credit (such as, for example, the opening fees, because if the loan is a small amount, these amounts may have a preponderant effect on the final interest rate to be paid) .
Finally, it is important to negotiate penalties if you want to repay the entire loan before it comes to an end, ie in case of early repayment of the loan.