No budget break this month and looking for personal credit to reorganize personal finances? The first step you must have taken, like everyone else, was to look for credit lines at your bank. But it’s worth? Increasingly, we read news about the increase in bank spread , so what ensures that the offer made to you is fair? Therefore, Lendico brings some points of attention if you intend to take this personal credit by your bank:
1. Evaluate the interest rate
Is the offered rate fair? In August, the average rate on personal loans was 6.56% per month, equal to July. Lower interest rate lines of credit can be found in both secured and payroll loans. However, to be factored in, your bank needs to keep an agreement with your company. Otherwise, only being retired, pensioner or civil servant.
2. Know the Total Effective Cost of the Operation
The interest rate is only part of the personal credit transaction. So pay attention to Total Effective Cost (CET)! This is the sum of the interest rate, plus charges, finance charges (if any), and IOF. Generally, financiers omit this information until it is time to sign the transaction contract.
3. The installment of personal credit
Is the installment offered by your bank flexible? Keep in mind that when closing a long installment (larger than 24 installments), the low installments are masked by an even higher Total Effective Cost (CET). Also make sure your bank authorizes advance payments if you wish. By anticipating them, you will be able to pay the interest rate equivalent to the period, decreasing the total value of the current portion, for example.
4. Financial planning on time?
As we have always said, personal credit should help you with your personal finances and not leave you with another financial commitment. It is of utmost importance that when applying for credit, the installments fit your monthly budget, not creating a new debt for you.
5. Automatic debit: advantage or not?
There are those who say yes and those who disagree. Why? If your account is negative, your direct debit will do the same, using the available limit on your overdraft. This modality, which has the second highest interest rate in Brazil, second only to the credit card.