When an unforeseen event arises or when the money is insufficient to buy what you need, one option is to apply for a financial loan. There are more and less affordable loans, plus more and less expensive loans, and this will depend on the type of resource that will be borrowed and the guarantees offered to the lender. Let’s look now at 5 types of loans and the advantages of each:
Commonly requested by active public officials, pensioners, employees of private companies or retirees. In this mode money is available very fast, usually on the same or the next business day.
As the guarantee given is the payroll margin itself, the risk to the lender is very small, especially in the case of withdrawals, pensioners or public servants, and this makes interest rates very good. compared to other modalities. However, it is not so simple to renegotiate amounts precisely because they are tied to the payroll.
Bank credit lines
It is common for banks to offer credit lines according to the profile and relationship of each client. The amounts are already pre-approved by the bank and have slightly higher interest rates than the payroll loan, but have minimal paperwork.
It is only necessary to formalize the option to obtain the loan that the value will already be automatically available. Often, it is neither necessary nor going to the agency, and the loan can be obtained through the institution’s internet banking service.
This is one of the most expensive forms of borrowing, as the bank has very little guarantee that the amount will be covered, although it is already available for you to see on your statement. The amounts are usually not high, but you should avoid it as much as your interest rates are very high and can hurt borrowers in the short term.
Credit card revolving
This is the most expensive type of loan for the borrower. Interest can be up to 20% per month, depending on the institution, and they accrue when you do not pay your credit card bill in full.
If you choose to pay only part of the total, the difference will have the impact of this high interest rate and, in less than 6 months, the initial debt will have more than doubled its value. . It is advisable that this credit line will be accessed only in extreme emergency when all other lines have already been exhausted.
The pledge is also fast, convenient and not bureaucratic.
It has attractive interest rates, but is limited to a portion of the pledged object, usually a jewel. One of the main advantages is that it can be obtained even when the client has credit restrictions, that is, the pledge can serve to clear his dirty name on the square with low interest and little paperwork.
However, if you do not recover the pledged asset within the agreed timeframe, you will still have to pay additional fees for the auction procedures that will take place. Therefore, only request it if you have a maximum mid-term horizon to retrieve it.
Of course no one dreams of borrowing money, but financial loans are very common and being informed about which ones are the most attractive in terms of interest and paperwork is critical.