Many young people have some dreams and goals to fulfill, but they don’t have the money to do it. Asking for a payday loan crosses their minds, but they feel limited because they do not know how the financial world works and are afraid of making a mistake choosing an alternative that does not suit them.
The first thing you should know is that it is not great science. To take advantage of a payday loan and have a great experience in the process, you just need to have the right information. Therefore, we have prepared a complete guide with the most important points when it comes to applying for a payday loan.
Take note and get ready to get the loan of your dreams!
Understand how much money you need
One of the first points is to understand what is the purpose of applying for a loan. Do not borrow money “just to have it.” You must set a goal and know what you will do with the amount chosen. Make sure you don’t ask for more, since you’ll have to pay interest for the money you request.
Find out how much you can pay monthly
As important as knowing how much money you need is knowing how much money you can afford. This has to do directly with your monthly income and your borrowing capacity, that is, how much money do you have left after paying all your debts and expenses for the month? That is the money you have to use in the monthly loan installment. But, eye to the louse, experts recommend that you do not dedicate more than 30% of your income to the payment of debts, so take out pencil and paper and check the numbers.
Having an idea how much you can pay monthly, you can determine the term to which you should apply for the loan.
Do you have a chance to get it?
Another key point is the application process and the evaluation made by the financial entities of your profile. Your credit history will be crucial here. Have you asked for a loan before? Do you have a credit card? If so, the bank will check if you are a risky customer or not. How is this calculated? It is a sum of several factors, but it has to do, above all, with how timely you have been in your payments and if you are behind in some debt.
How to know which entity to choose
Something that you will have to consider is who you are going to borrow. Many financial institutions offer payday loans, but each has different conditions; Then, instead of marrying the one with the most beautiful commercial on TV or the one that uses your favorite color, make a conscious and informed choice. Compare the available alternatives, the interest rate and the additional benefits they offer you. Once you have all the information, you can choose the entity that suits you.