In times of crisis it is fundamental to cut costs. We are called to save and cut out all “fats.” It may seem to us today that we have reduced many costs and that “we can not tighten the belt anymore.” However, it may be time to look at your various credits. It is possible to have a cheaper personal credit with some tips and suggestions.
Do you need a personal credit?
This is a question we always ask. We often think that we need personal credit because we really want to buy something. However, if we stop to think, with some discipline and savings we will be able to find alternatives. The alternatives make it possible not to resort to personal credit and pay interest … and more interest …
What Do Banks Want?
To get the cheapest possible personal credit you have to ask yourself what do banks want. Banks want to weigh very well the relationship between the return (the more the better) and the credit risk (they do not want to take risk). Always having in mind the risk / return relationship, the banking client has to offer guarantees so that the banks are in the disposition to lower the interest rates of the credit . In this context, we suggest you pay attention to:
- Fixed income – Banks value stable income and effective work contracts. With some difficulty you’ll get a cheaper personal loan if you’re a green-worker.
- Effort Rate – The ratio between your credit installments and the net income of your household should be less than 30%, if you want to request more credit. However, if you want a consolidated credit you should keep in mind the effort rate after consolidation (typically low significantly with the savings generated). We recommend using the credit simulator at the bottom of the page to see what your credit will be.
- Guarantor – If you want to have a cheaper personal credit you can always propose a guarantor for the credit operation. Not only does it increase the likelihood of seeing your credit approved as it may even lower in some points the interest rate of your personal credit. Please, however, pay attention to the guarantor’s rights and duties.
- Real Guarantees – If you are able to add a mortgage on a property will make the bank much more comfortable with the credit operation.
A Stable Relationship With Your Bank Is Halfway To A Cheaper Personal Credit
Credit means trust. As we succeed in gaining the trust of our account manager and our bank we will achieve greater openness to the granting of credit at lower rates. It is not a guarantee of approval but may facilitate.
Although you may have a good relationship with your bank, you may not have access to credit at this bank because of bank history . If you have had a slight delay or incident you will see your request declined. At this point it will be advantageous to consult other alternatives in banks that do not have access to your history.
Negotiate and Get the Cheapest Personal Credit
The Portuguese are not big supporters of negotiation. Although we are improving in this context we still have a long way to go. Unfortunately we have not yet realized the potential of the negotiation. Applied to our personal finances and credit, trading allows us to have access to a cheaper personal credit . Never forget that the is not always guaranteed, so you should try. Ever!
If you do not have the time, availability, or the ability to trade with the bank. When we receive your process we will contact different financial institutions and negotiate with these institutions the rate, term and conditions so that you have the most adequate provision for your family budget. And the most important thing is that this process has no cost of analysis or dossier.