What types of loans are there and how to choose the best one?
There are several types of loans available on the market today and each of them differs from the other.
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The best loan for those who want to pay little, for example, is a payroll loan, as the interest charged is lower and the repayment term tends to be longer.
In turn, refinancing is ideal for those who own property or a car and also want to pay less.
In addition to these, there is also the personal loan, which is the most common alternative, recommended when the other two are not possible.
In any case, learn about the main types of loans below and choose the one that's best for you.
Personal loan
A personal loan is one of the simplest ways to obtain credit on the market.
So, to have access to it, you just need to look for a financial institution or bank that offers this type of service.
This way, simply request the desired amount. If approved, the amount will be available in your account for you to use as desired.
Next, you will need to pay the installments to the finance company, which are the amounts that will pay off the credit acquired, plus interest and other fees.
In fact, this is an important point. Despite what many people think, interest isn't the only thing banks charge.
There are other fees related to personal loans and it is essential to take them into account, so the risk of accumulating debt is reduced.
Refinancing
Another type of loan is refinancing, a much more affordable option than a personal loan, and to obtain it you need to offer something as collateral.
Typically, the most common are car and property refinancing.
Therefore, if you own a property in your name, you can refinance it with a finance company. In exchange, the company will release the loan funds into your account.
Because it has a guarantee, refinancing tends to be cheaper, as the financial institution will have the security of what amount will be paid.
After all, if the consumer does not pay the installments, the company can “seize” the asset to pay off the outstanding debt.
For this reason, it is essential to plan financially to be able to obtain a good refinancing.
Payroll loan
In addition, there is also the payroll loan, which is usually cheaper, as its payment is compulsory.
It's simple: the installments for payment of this type of loan are automatically deducted from your payroll.
Therefore, there is no risk of not paying or forgetting, since the discount is made by the bank.
The payroll loan option is currently available to employees with formal employment contracts, INSS retirees and pensioners, public servants, and members of the armed forces.
Conclusion
To choose the best loan type, it's best to analyze the rates and choose the one that best suits your consumer profile.
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