Banks continue to have a major restriction on access to credit, which are scalded by increasing credit default. However, be it personal credit, consolidated credit or even housing credit, it is still possible to access credit provided with independent and specialized advice and support.
If access to credit is possible, we leave some questions to ask before asking for a loan:
Is This Credit Really Necessary?
When the temptation arises to possess something the solution is to request a loan for the purpose. Basically if I need a car I will ask for a car loan as if it were the only solution to buy a car.
Unfortunately what advertising means do is convey this message because there is no car advertisement that has no associated credit solution. Who says car says other consumer goods and the truth is that rare are the times we wonder if it really is necessary credit to acquire such good.
It’s time to put everything on the table and see if the good you want to buy is useful and necessary for the well-being of the family. In fact, many times we look for credit to pay other credits as a way to reduce benefits and we do not know that there are very interesting alternatives.
Do I Have Alternatives to This Credit?
It is always preferable to try to find solutions that avoid using credit. If what you are getting is extremely necessary, then it may be time to use your emergency fund or those savings you have in the bank. I know that it is difficult to make this decision but, in the case of interest payable, I doubt that the interest you receive from your savings will exceed the interest you will pay on the loan.
Of course, not all of us have savings and that many of us have not yet discovered the true value of having an emergency fund. In these cases, there is little left to resort to family members to avoid credit. It is an equally difficult decision to make, but when the value of the purchase is undisputed it is easier for the family to help.
Credit is the Only Way. But Will It Help Me?
An example is a credit for health care or for the education of children. If all the alternatives have been exhausted and if it is really necessary the credit will certainly have a huge importance in the conduct of well-being, so its value and the help it provides is indisputable.
However, for other purposes it is necessary to consider, for example, buying a car because it is extremely necessary for the performance of your professional activity or buying a car because what you own is outdated. There are two credits for the same purpose that is the purchase of the car, except that while the first reason the credit will help, the second will be a burden on your family budget.
Am I able to pay the installment?
As a general rule, this decision is left to the bank. That is, if the bank approves the loan is because I have ability to pay, thought that led many people to blame the banks for the financial problems of families. This transfer of responsibility is wrong because we have to assess our ability to repay the loan and determine all the variables that may influence our ability to pay.
It is true that knowing our effort rate will help us, but there is a lot of information that should not be ignored, for example, there is a risk of losing your job over the term of credit, I will have some necessary expenses to do in the near future which will influence my financial standing, I am prepared for difficult times, I am prepared for unforeseen circumstances, among others.
Since you can check what I get today is not enough to guarantee the responsibilities of the future, there has to be something more for the guarantee to exist.
What Do Others Think?
I am not referring to friends, but to the more direct relatives as spouses, children, Parents and Grandparents, who usually have a more open vision. Asking for and seeking an opinion on potential decision-making could be a decisive factor. It is not to say that they are right, but they will certainly give information which together with their own conclusions will indicate the way forward.
If you need an opinion for your specific case you can also bookmark your free financial diagnosis query. We will analyze your current situation and show you the different paths at your disposal. Never forget that if you want credit you should look for the cheapest personal credit for your specific case.