In general, people only stop to think about credit when they need one and don’t know where the best place to borrow , how they work, etc. Also, some people may not understand much about fees and how interest rates are calculated.
So let’s talk about this and answer any questions?
Where is the best place to borrow?
Before you stop to think about where to borrow, it is important to know which lines of credit exist and which ones are available to you. Civil servants and retirees, for example, find it easier to get paychecks. If you have a property or vehicle, you can look for secured credit. And those who do not have the possibility to make a payroll loan or have a secured credit can opt for the personal loan.
There are also financings, which are credit lines for the purchase of goods that are sold during the payment period. And you may not have stopped to think about it, but the revolving credit card and overdraft are also loan lines, but with very high interest rates.
Where to find credit
Do you already know what kind of credit you need? So let’s go to the second question, the main one, for those who came in this post: where is the best place to borrow?
Well, there are many options for you to find credit, but not all of them are good, so let’s talk about each one:
Even today there are those who use loan sharks when it comes to borrowing, but let us highlight here that loan sharking is illegal. It’s a crime! These people lend money without Central Bank authorization and regulation and charge abusive interest. In addition, it often embarrasses and threaten debtors. Don’t think of it as a solution if you need credit!
Family and friends
It is common for people to seek acquaintances to get a loan, but this needs to be done with caution. If you fail to pay a friend or family member who has lent you money, it could damage their financial health and undermine your relationship. Before borrowing money from an acquaintance, do some analysis and make sure that you will be able to repay as agreed.
If you are a civil servant, retired or working in a company that has a partnership with a bank, you may be able to borrow from it. If it is not, but you have a good relationship with the bank, it may give you credit. However it is important to compare rates before closing the loan.
If you are looking for financing for your car or home, for example, there are financiers linked to builders and dealers that can help. However, be aware and research a lot about the company first and compare rates. Also check if other lines of credit may be more beneficial to you.
Fintechs are finance companies that use technology to offer their clients better solutions. At credit fintechs like Lendico, you can find better personal loan options over the internet.
Regardless of where you decide to take your credit, to be sure of the best place to borrow you will need to check rates and charges. Besides looking at interest rates it is very important to focus on CET (Total Effective Cost). It represents all the costs you will have with the loan in addition to the repayments of the installments due. See how to calculate CET.