We would all prefer to have the cash to buy everything we need or want. However, in today’s economy that is almost impossible. Faced with this problem, consumer credit is one of the most useful alternatives offered by the financial market.
It is a loan for low amounts and very easy to approve. In fact, consumer credit is considered the simplest type of financing in the financial market. It is mainly used for urgent expenses or to treat oneself, such as holidays or shopping. But even when it is an easy financing to obtain, this month could be the most convenient to request it, due to a series of economic factors. In Compare we want you to always get the best offers, and for this reason, we will explain in this article how to choose the best consumer credit.
Why is April the perfect time?
Last March, interest rates for consumer credit closed at 17.8% annually, the lowest figure since 2002, the year in which these indicators began to be measured. This is due to the low user demand for these loans in March. From the Capital Lender Bank they indicate that this drop is due to the fact that users preferred to save and not acquire debts during March, especially because they found themselves with a high level of debt after Christmas and summer vacations.
What does this imply for you? During the month of April, consumer loans will experience a historical drop in their rates and even many banks have lowered requirements in search of greater demand. So, if you want to request one of these financing to pay for some personal taste, home arrangement or whatever you need, April is the time!
What is the best consumer credit? Differences in the market
Of course, there are more convenient credits than others. Despite the fact that this month of April is an ideal juncture to request this financing, you should pay close attention to the financial institution or bank where you plan to do so, as there are large differences that can affect how much you end up paying. In fact, SERNAC carried out a study last March to detect differences in the total costs of consumer loans. The results were alarming.
In the Chilean financial market, there are differences of up to three million pesos between the total cost of the cheapest and the most expensive credit. In this scenario, simulating your consumer credit before hiring it becomes essential. In Compare you can do it in a simple and totally free way. Take a couple of minutes and choose the best financing.
And how do you know which is the best?
Always look at the CAE. The percentage that includes all the expenses of a credit and expresses how much you will pay annually for it. Remember that the lower the CAE, the “cheaper” your consumer credit will be.
The best credit: find out and calculate
Spend as little as possible and pay low interest. That is what we all want when applying for a consumer credit. To achieve the objective, it is best to pay attention to some fundamental details that will decide the cost of your financing and how convenient it is for your economy.
The first step in choosing a suitable consumer loan is to analyze your own economy. Defines how much you can spend on a monthly payment and do not go beyond that value. In turn, remember that consumer loans are the lowest amounts in the financial market and therefore, it is more convenient to pay them in the least amount of installments possible. When choosing your financing, consider one that does not tie you for too many months: Consumption is a Credit that is approved quickly and is quickly dispatched from your economy.
Quote without pressure
It is very common for some banks or financial institutions to use various offers for users to contract with them. Phrases like “single offer”, “just for today” or the classic pre-approved credit trick are only meant to rush consumers.
And if you hurry, you can not quote the most convenient option. Don’t be tempted to ask for credit just to avoid missing an opportunity. And at the same time, don’t apply for this Financing if you really don’t need it. The first step before applying for a consumer loan is to assess whether it is necessary for your economy.
When do I need a consumer credit?
The consumer credit is a loan of small amounts (equal to or less than $ 5 million) of quick approval and thought to cover urgent expenses, daily situations or purchases. If you need quick money to cover any of these needs, and you have enough money to pay high installments in a short time, then consumer credit is a convenient alternative for you.
We recommend that you only quote it if you have the certainty that you can pay it without prolonging the fee months too much. Keep in mind that the longer it takes you to pay the credit, the more expensive (and inconvenient) it will become for you.Always remember that consumer credit, like all financing, must be a help to your economy and never become a problem.
Apply for your consumer credit intelligently!
You are now a little more informed of what you need to obtain a convenient consumer credit. However, you will never be fully informed about the market until you list the alternatives and simulate your Credit.
In Compare you can simulate your consumer credit for free. You only have to enter our Financial Simulator to access a world of financing alternatives for you.