7 tips on what to do when you need a loan

Keeping finances under control is not always an easy task, especially with Brazil’s unstable economic situation. With this, more and more people are considering the possibility of having a loan to get rid of debts.
However, obtaining this type of credit from financial institutions can be a very bureaucratic process. In addition, when considering the possibility of a loan, you must also make good planning according to your income so as not to worsen your financial situation.
If you are interested in taking out a loan, follow our tips today:


Think: why do I need a loan?


When thinking about a loan, you need to identify the reason why you need the money. It is essential to be clear about the real need for credit, as applying for a loan without a specific and really relevant destination can lead to an even greater financial problem.

In the case of renegotiation of overdraft, a loan made correctly may cut interest rates in half, for example.


Analyze whether the loan is the best way out

Is a loan really necessary or is it possible to get the desired amount while saving for some time? If the answer is yes, it is advisable to collect the necessary money and not take the loan, avoiding paying interest unnecessarily.
Borrowing money from relatives and friends is a good way out, however, one should be aware that the money must be returned in the same way as to a financial institution, again demanding financial planning.


Lift the options

loan option

Do not seek the loan amount only from your bank. The variation in interest rates is high will make a difference in the total amount of debt to be paid. In addition to physical financial institutions, such as banks, there are options for borrowing online that have lower interest rates.

Be careful when choosing the financial institution where you will take the loan, as there are many shell companies that take advantage of this type of situation for scams. Search the internet for references and acquaintances before closing a contract.


Set a maximum installment amount to be paid

A loan cannot become a debt that you are unable to repay. So, before hiring, simulate the various plans and options and determine the maximum amount to be paid monthly.

It is important to note that the value of the installments to be paid monthly does not exceed 30% of your monthly income . The greater the number of installments, the lower the value of the installments, however, the total value of the debt will be greater. Be aware of the conditions offered by finance companies and banks.


Read the contract

loan is the best way out

Unfortunately, most people are not in the habit of reading loan contracts. However, reading the document is essential (and mandatory) so that there are no surprises along the way, such as maintenance fees, price adjustments, possibility of cancellation only by paying fines, among other things.


Pick up the required documents

In general, the finance companies request the following documents for the realization of the loan: CPF, RG, proof of address and proof of income. These documents may vary according to the requests of each institution, but all are relatively easy to obtain.


Deliver your documents and wait

loan payment

After choosing the finance company or bank that offers the best credit solution for your need, just hand over all the requested documents and wait. But be careful: handing over the documents and not having restrictions on the CPF is no guarantee that the loan will be released.

Each company has its approval policy, which can include payment history, disposable income, economic profile and the existence of other loans. Therefore, do not settle debts with the loan money until you have a return from the financial institution.

So, do you still have any questions about how to make a loan? Share here in the comments!

Loan despite negative Credit Bureau with guarantors.

A negative Credit Bureau is the presence of at least one negative characteristic in a Credit Bureau report. In the perception of many consumers, this is considered a safe reason for exclusion when lending without a guarantor. In fact, not all financial institutions behave so rigidly, so that a soft negative feature does not necessarily prevent credit from being granted.

This applies more to branch banks than to direct banks, since the impression made in the personal loan discussion also contributes to decision-making. A surety is liable for the loan repayment if the actual borrower cannot make it. This increases the security of credit considerably.

The advantage of a guarantor when applying for a loan

The advantage of a guarantor when applying for a loan

Many applicants receive the desired loan despite a negative Credit Bureau with a guarantor, since its provision increases the likelihood of the loan being properly repaid. A prerequisite for lending is that the guarantor has faultless Credit Bureau information and the highest possible score. In contrast to the information regarding existing negative characteristics, not all banks take into account the score value calculated by Credit Bureau when making their loan decisions, since some financial institutions regard the method of calculation, which is largely not disclosed to them, as questionable.

A further prerequisite for the successful application for a loan despite a negative Credit Bureau with guarantors is that the guarantor has a sufficiently high income to settle the obligations that may be associated with the guarantee.

The strict income assessment used here is necessary because the legislator classifies a guarantee as ineffective if it overwhelms the guarantor financially and this fact becomes apparent to the bank when the loan application is properly examined. Due to the legal requirements for the legal effectiveness of a guarantee, the bank places stricter requirements on the guarantor’s household accounts than on the actual borrower.

The type of guarantee

The type of guarantee

If the bank grants a loan despite a negative Credit Bureau and with a guarantor, it usually requires a joint and several guarantee. This form of guarantee allows the lender to require the guarantor to settle the liability without having previously unsuccessfully enforced the lender. In addition to the outstanding loan amount, the bank can charge the surety the accrued interest and the cost of the loan termination.

It is customary to first warn the borrower and to notify the borrower in the event of non-payment. If a guarantor repays the loan, he is entitled to the reimbursement of the amount he has paid by the actual borrower.

This claim does not have to be agreed separately, but results from the nature of a guarantee in the case of a loan despite a negative Credit Bureau and with guarantors. In reality, the legal claims resulting from a guarantee can often not be enforced because the borrower is not sufficiently solvent to repay the debt.