Before a person takes out a loan, whatever type of loan they choose, it is important that he or she is sure they can honor their debt. Blue Trust Loans and every other financial institution will give priority to a borrower’s repayment capacity, which must be capped at 33% of their income. This helps the lender determine the capital to which they are entitled.
In addition, each borrower will need to have a stable job and sufficient income to obtain a personal loan. Without these two things, getting a loan is impossible. What other things should people consider before getting a loan?
Personal credit advice
Some agencies that offer very advantageous rates sometimes require some type of personal contribution. This is particularly the case in the automotive sector; for example, manufacturers offer loans with 0% APR, but with a contribution equivalent to 30% of the capital borrowed. In addition to comparing many offers, understanding a few practical tips can be useful.
When comparing loan offers, use the APR instead of the nominal rate. Include the full cost of borrowing as this saves you from unpleasant surprises during repayment. Do not hesitate to negotiate the rate with a banker, especially if you have multiple loans out there.
Otherwise, try your luck with other lenders as the competition in this market is in favor of the borrower. Finally, take advantage of the promotional offers regularly offered by financial institutions.
Verify everything before agreeing to a loan
In the same spirit, verify the details of the terms and conditions of the contract and that all the mentioned fees are listed. Normally, they are limited to a registration fee, an application fee and the cost of the insurance (if applicable). Be specific about early repayment terms and any applicable penalties.
The law states that borrowers can repay part or all a loan in advance. Finally, in addition to the loan itself, consider comparing the types of insurance that accompany the loan, which will help to minimize the total amount. In any case, take time to think about your decision, and use comparators or calculators to determine which one is best suited for your needs.