When it’s worth taking out a loan?

Today we are going to talk about that money that we take from someone else and then return with interest: the loan. Tell me: when it comes to which team you are on: of those who feel a chill down the spine just by hearing that word or of those who take all the money they offer without thinking about tomorrow?

Like everything in life, each case is different and what matters here is balance. Shall we meet him together?

 

You don’t have to panic over a debt

debt loans

Like overdraft and card revolving. In many cases, the loan may be the best way to get out of it. “But, how am I going to get out of debt by taking another one, girl?”, You will ask me. I explain: you get a loan with the same amount, but with lower interest rates than the debt you already have. So, you pay off the first one and, in the end, spend a lot less money, since you will pay a lot less interest.

Do you know that crucial moment in your business when it either goes or splits? This is where a loan can also go very well, thank you. It can be the little push needed for your company to get the momentum it needs to take very high flights. But some bills need to be done before signing the contract because we don’t want anyone falling over the edge, huh.

There is also the time of horror when that car crashed, the pipe burst, a health problem appeared and you are paralyzed without knowing how to get out of this problem. In such unexpected cases, if you don’t already have an emergency reserve, the loan can be a great ally. However, you must have both eyes wide open. Despair is not a good advisor, so don’t take the first option that arises because it can become another problem ahead. Always research rates and payment terms to choose the best option for your pocket.

 

Now changing from sadness to happiness

loans

Let’s talk about a good thing! Sometimes there is no money to make a trip that has been dreaming for some time, take a nice course, buy the car that a friend is selling. In these situations, how about a loan? Before I answer, I have a question for you: can this course, trip, car be purchased at another time or is it a unique opportunity? If you can do it later, it may be more worth saving some money a month or trying to make extra money to make your dreams come true without leaving debts waiting for you at home. If it is a unique opportunity, the loan can be a good one.

Whatever the situation, the essential is to give that analyzed in the options to choose the best one for you.

How to get out of unpayable debt

We always say that the best alternative to pay off a debt is to reorganize expenses, strictly follow good planning and exchange it for a credit with lower interest rates. But we cannot generalize. When the monthly pending is already greater than the amount that goes into the pocket, this solution is not the most effective. In these cases, the customer is over-indebted and needs more help to get out of this! But before looking for that little hand, it is necessary to identify if this is the situation . There is over-indebtedness when your monthly income is totally compromised by basic needs and there is no slack in the budget to pay at least part of the debt. Thus, it multiplies with interest and paying it off seems something more and more distant. If that’s your case, don’t despair! Many times, we let the financial situation rule our emotional, but this is not usually very positive when we need determination to regain control of the money. Know that even a super debt has a solution and we will give you all the steps to reach it!

 

Understand the true size of debt

debt size

Accounting for how much you owe is one of the fundamental first steps. Consider all interest, penalties and fees that have been levied on the amount since it is pending. If you have more than one debt, do it with all of them and also know what the total amount is.

 

Analyze your finances calmly and in detail

Analyze your finances calmly and in detail

Before making any decisions, you must know exactly where your money is going. See what percentage you spend on bills for the home, market, transportation, health and all other categories present in your day to day. Doing this makes it easier to determine which habits can be changed.

 

Cut spending

Cut spending

Analyzing your spending, you realized that almost all income is committed to basic spending. But even then, it may be possible to save money. A good tip is to go to the market with cash and not take a card. That way, you commit to buying everything you need with just that amount. How about also trying new and cheaper brands? You keep your lifestyle, but spend a little less – and every penny makes a difference!

 

Sell ​​some goods

Sell ​​some goods

Even if it is a little sad, it is worth considering selling some goods when we are in need of a little money. If you have a lot of clothes hanging in the closet, you can sell the pieces at thrift stores. Selling the car and appliances is also a good thing, as they usually have a higher value.

 

Negotiate with the lender

debt loans

Now that you know how much you owe, changed some consumption habits and did what you could to improve finances, it’s time to try to negotiate with the creditor. Ask for a discount and propose a deal that fits in your pocket. A good alternative is to use a portion of the money you received from the sale of the goods to offer an entry in exchange for more advantageous terms in trading. But be careful not to accept a portion that you will not be able to pay! 

 

Look for public agencies that offer support to the over-indebted

Look for public agencies that offer support to the over-indebted

If the creditor does not offer an agreement that is good for your situation, do not feel obliged to accept it! Some public agencies exist precisely to provide help in these situations. The Public Defender’s Office is one of them. It aims to defend the rights of people who are unable to pay expenses and a private lawyer when opening a reconciliation process with the creditor company. In some states, the debtor can also rely on the Lite Lenders Support Program for the Super-Indebted (PAS). He conducts a series of interviews with the consumer to understand the size of the debt and his day-to-day habits, offers lectures with financial guidance and also mediates with the creditor through a conciliation hearing. If you are over-indebted, the most important thing is to focus your attention and new habits to get out of this situation. Postponing this, in addition to keeping your name dirty for longer, will make the necessary changes ever greater. Be sure to follow these tips to regain control of your financial life.

Do you know what credit score is?

Those who are looking for a loan or have had to ask for a little help of this type have certainly heard about credit scores – that famous phrase “Sorry! Your credit score is very low ”. It is easy to know how important it is in these cases, but understanding what it means and how to consult it is not such a simple task. As the name implies, this is a score used by financial institutions to analyze their client’s ability to pay before granting any type of credit. This applies to loans, financing and even to release limits on overdraft. But just knowing the definition is not enough. That is why we have separated some important tips on the topic so that you can see why understanding these two words well is so important. Keep reading!

 

What is credit score?

credit score

As we have already said, it is basically a tool by which financial institutions, retailers and banks decide whether or not to grant credit to their consumers. The score is a score from 0 to 1000 in which information on how the consumer would behave when paying their debts is analyzed. To calculate some items are analyzed, such as: records at Fine Bank and Across Lender Group;

  • acts;
  • income;
  • marital status

Based on this information, a static calculation is performed and the system automatically reports a score to the consumer. The higher the amount calculated, the better it will be for your financial resume. On the other hand, the low score means that your default rate is the chance that you will default on whoever is granting you the credit is high. The scoring of the score works as follows:

  • up to 300 points is a high risk of default;
  • between 300 and 700 is the average risk of default;
  • above 700 is low risk.

 

Why is having a low score bad?

credit score

As it is the main factor analyzed by institutions to grant credit, you can already imagine that having a low score is not very favorable. Certainly few people would lend money to a bad debtor, don’t you think? The same is true for banks. After all, if a consumer has a low score, he probably will not be able to meet the payment terms of his debts. That way, if you don’t have an attractive score usually set by the financial institution – you will hardly be able to release the credit. What’s more, when you do, you will probably have to pay dearly for it, since the risk of not paying off the debt is high.

 

I want to know my score!

credit score

Learning how to consult the score is essential to understand how it influences your credit goals, to understand where your mistakes are and to be able to plan your expenses better. Currently, many sites have made it possible to access it, such as the Across Lender Group Score and the Fine Bank consultant. They require a registration and, based on their personal data, analyze information such as the payment of bills on time, the history of negative debts, the frequency of searching for credit in the market and the updated registration data. Other portals also offer the service, but charge for it, so stay tuned !? If your score is not as desired, know that it is possible to improve this situation! Check it out:

 

How to increase the score?

credit debt

It is essential that you know that the score is not something fixed and is evaluated at the time the consultation is made. Therefore, there are some actions that can improve your score:

  • pay your bills on time;
  • update your data on Across Lender Group;
  • pay off your arrears;
  • pay your debts in advance;
  • invest in financial institutions;
  • prove income.

 

To worry about your credit score is to worry about the image you are seen by financial institutions. Therefore, it is ideal that you do not neglect your financial planning and remember all our tips to always keep your score playing on your side.

Low score? See how to improve the grade

At some point you have needed (or will still need to) install a purchase, get a loan, or have a credit card. And it is difficult for banks or financial institutions to fulfill this request immediately.

These companies usually use the time to think to give the answer to do a kind of scan of customers’ pockets. And in this radiography they seek information about the payment history of those who asked for the credit or intend to split the account.

Their goal is to avoid, as much as possible, being passed over. That’s right, just like you or me, nobody wants to take a default, stop being paid, whatever the explanation.

And in the case of companies, the solution is to seek support in the credit score. Score is a kind of note to assess the ability to pay, the possibility of the person honoring (or not) the commitment made.

 

How is the score calculated? Can I increase it?

credit score calculated? Can I increase it?

There is no single way or simple formula for this. Usually each place adopts a very specific system. The common ingredient of almost everyone is public information coming from companies that work with exactly this.

You may have heard of these places. These are called credit bureaus. Quite strange name. Difficult to even speak. But if I tell you that Fine Bank, Credisure Group and Lite Lending are examples of bureaus, the conversation will be much calmer, right? 

The score usually varies between 0 and 1 thousand points and the higher it is, the lower the chance of the person being in default:

  • 0 to 300 points – high risk of default;
  • 301 to 700 points – average default risk;
  • 701 to 1 thousand points – low risk of default.

Another advantage of having a good score? Imagine the same situation. The person wants to split the purchase, asked for a credit card or needs a loan. If the company consults her name and checks that score very high, the treatment is usually different.

There’s even a red carpet The tendency is to release a higher limit on the card, split the purchase more often, or allow the loan to be paid in more installments and at a lower interest rate.

But and for a slightly different situation. The score is low. Is there a way to improve this faster? Take note of the Guiabolso tips for this:

 

Avoid getting your name dirty and pay the bills on time

credit score

Also remember to renegotiate debts if they are a little higher than desired and escaping the budget. Patience also needs to be used here. It will take a while for your status to change after everything is right, all in blue. It is not as fast as in the social network that is just updated and everyone already knows.

 

Try to increase income

Try to increase income

Usually when the gains increase the score also gives an up, it goes a little up there. A way to earn a little more? How about a beak or a freely exploring your professional skills? 3 – Use credit lines well
It works like this, if the person manages the credit lines well, it is a sign that he has enough organization to conduct his own financial life well.

Another valuable tip for the score to get better? Seek credit at various institutions and with certain regularity. The habit shows the concern to simulate the best option to not let things get out of control. On the other hand, entering the overdraft or revolving card and not leaving there, or using a bad check take you in the opposite direction and make your score go downhill.