What we should value from a personal credit

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Personal loans are one of the most requested financing products. Although the banks today do not give credits if it is not with a solvent guarantee, a small loan can help us with a concrete and unforeseen expense. And for personal loans the requirements that banks require are lower than for other types of loans.



The relationship with the bank

If we already have a previous relationship with the bank, it will be easier for us to be granted credit . Some accounts, such as the Expansion Account of Banco Sabadell, have a pre-agreed loan. This is also the case of the Pre-granted Credit of the Open Bank Open Payroll Account. This is a great advantage for two main reasons. The first is that we will save certain procedures; The bank already knows our profile and our finances so you do not need to ask us for much more information. The second reason is that because they are already clients of the entity, the loan conditions can be more advantageous.

Interests and commissions

When deciding to ask for personal credit, we should not only look at the interest rate we will pay (in general, between 10 and 15%). Expenses and commissions vary from one entity to another, and in some cases can be decisive:

  • Opening commission
  • Study commission
  • Penalty in case of early repayment of the loan (around 1.50%)
  • Hiring related products, such as life insurance

Other important factors

After assessing all the commissions, there are other factors that we must think about before signing the personal credit:

  • Need for immediate money: if the expense can wait for us to save, we must wait . Asking for a loan should be the solution for when there are no other alternatives.
  • Payment of installments: coping with the payment of a loan requires certain stability and job security . The consequences of not paying will incur more expenses and commissions. In addition to entering lists of defaulters as ASNEF, which would make it more difficult to get a loan in the future.
  • A good practice to get the loan that best suits us is to request it in more than one entity. If a bank says no, we will have other options, and if several approve our request we can compare and choose the one that has better conditions . As we have already said, if we have the payroll domiciled in a bank, it is very likely that this entity will offer us the best option, but it might not be so.
  • Another recommendation we make from HelpMyCash.com is to read the contract in depth . Before signing it is important to be clear about all the points of the same: the amount loaned, the repayment terms, the installments, the interest, the commissions, everything. If you have any questions, do not hesitate to resolve it with the bank.