Taking a loan may be the only alternative for those who are over-indebted, lost their jobs or had some emergency expenses. You need to know where and how to get credit so as not to sink further into debt.
First of all, remember that lending is always the last option, to be used only in emergencies or to exchange expensive debt for cheaper one. As cheap as the credit line is, it is not worth paying interest to the bank for what is not urgent, such as renovating the house or traveling, for example. With the no credit check loans at slickcashloan.com you can have the best deals now.
Here are some tips for getting your debt as healthy as possible and preventing your loan from turning into a snowball:
Prefer payroll loans but research before hiring
After the mortgage and car financing, payroll-deductible loans are the lowest interest rate loan. This type of credit deducts the installments directly from the salary or benefit, so the risk to the financial institution is low.
The average interest rate on payroll-deductible loans in June was 3% per month for private-sector workers and 1.9% per month for civil servants, according to the Central Bank. Just to give you an idea, the average interest rate charged on revolving credit in June, to split the card bill, was 13.9% per month.
- However, stay tuned. Even in payroll-deductible loans, there are big differences between the rates charged from one financial institution to another.
- For private-sector workers, the loan can cost between 0.65% per month and 6.36% per month, depending on the bank or finance, according to Central Bank data for the last week of July. For civil servants, the minimum rate over the same period ranges from 1.03% to 5.42% from one institution to another.
- If you are a salaried employee, you can only get the loan from the bank through which you receive the salary or from another institution with the company or the government.
Look for cheaper loans to refinance debt
You can get a loan with lower interest rates to pay off more expensive debt. This will not reduce your debt, but it will make it grow at a slower rate.
Only those who are salaried or receive benefits from the can contract payroll loans. If this is not the case, then the second-best option is a personal loan before you install interest purchases, use overdraft or install your card statement.
The average interest rate on unsecured personal loans in June was 7% per month, according to the Central Bank. However, among banks and financials, this rate ranged from 1.42% per month to 22.19% in the last week of July.
When hiring a personal loan, the tip of researching rates among financial institutions is even more worthwhile.
Beware of scams in online loans
Keep an eye on online lending sites and apps, which have spread rapidly in recent years and promise to charge lower fees than traditional banks.
- When borrowing from a correspondent bank, try to find out who is the bank or financier behind offering the credit and find out on the internet about your credibility.
- These bank correspondents have grown absurdly, with appealing advertising, but they don’t have the same commitment as banks and financiers to the operation and financial orientation in giving credit.
According to Ione, the scams grow when borrowing online. If the company asks for a cash advance to cover alleged fees or taxes, be suspicious as this practice is not common in the market.