How to find an installment loan with the best conditions?

Finding a loan is easier than it seems, it is only necessary to analyze your financial needs and your economic situation and compare the different offers in the market. Then, you can consult some of the best loans of the moment.

Find a credit by amount: how much money do I need?

The amount of money we need is an aspect that will limit the available options, so when looking for an installment loan, we must take into account the amount of it– good resource.

According to the amount that we need, how we want to reimburse it and to which entity we should go, we can choose one type of financing or another. It is important to carry out an analysis of our need for money to go to the loans that best suit our situation since each type of financing has certain characteristics and advantages that will make them more or less convenient for our situation.

How to explore the market by type of credit?

There are many options when looking for a loan, from mini loans and personal loans to payroll advances or credit cards that, although in plastic support, are also a type of credit instrument. Before looking for a loan, it is important that we analyze our need for financing and see what type of product suits us best. Here are the most common:

  • Revolving credit: credit whose limit will decrease as the client makes use of it and will be restored when the client returns the amount used.
  • Credit card: line of credit in plastic support designed to finance purchases or group payments in a single installment at the end of the month.
  • Discovered: also known as “red numbers”. Funds that the bank advances to the client when he/she withdraws or uses more money than he/she has, for example, when a receipt is charged for an amount greater than what is in the account. This type of credit is very expensive.
  • Advance Payroll: consists in advancing the client the amount of one or more of their payroll.
  • Mini-loans: loans for less than 1,000 euros that allow the customer to obtain liquidity very quickly.
  • Personal loans: loans with which we can get a larger amount to finance large personal projects. The guarantee that we will provide to the lender are our present and future assets, that is, our savings and our income.
  • Loans with mortgage guarantee: unlike the previous ones, they have a specific guarantee, such as a real estate.
  • Pawn: operation by which the client obtains a sum of money immediately in exchange for leaving as a guarantee a property of his property. It is done in pawnshops.

According to our profile and our need for financing we can go to one type or another according to their characteristics. Knowing the different types of loans we can go to will help us choose better when looking for a loan.

Find a credit for its purpose

Another point to pay special attention when we seek a loan is the purpose we want to give money. Most of the entities have one or more generic personal loans, but many of them also offer loans for specific purposes that can be more on the account and that can be better adapted to our financial needs.

Let’s see how the most common purpose loans are:

  • Consumer loans for any purpose: they are usually granted by non-financial companies such as department stores to encourage the purchase of their products such as appliances, mobile phones, cars, etc.
  • Loans for contingencies: minicréditos are the loans for incidentals par excellence. They allow us to get financing in a matter of minutes for any urgency that requires fast money.
  • Car loans and motorcycle loans: personal loans granted by private equity entities, banks or concessionaires.
  • Loans for renovations or household equipment
  • Study loans
  • Loans to finance trips

Although quick mini-credits do not require us to determine a purpose, we must bear in mind that this type of financing is designed to solve small incidentals that require an immediate economic response. Using them for another purpose that is not for which they were designed can lead to irresponsible use and possible over-indebtedness.

Investigate for credit accessibility

Where to look for the loan is another important point to consider. The banks, in general, require the client to go to his office and, of course, to be a client, while the private credit facilities allow the operation to be carried out online, from any device with an Internet connection, or by telephone and, in some cases, they will allow us to obtain liquidity, even if we are new clients.

Other forms of financing, such as those of department stores, allow financing purchases directly from the point of sale, thanks to the agreements that these companies have with some financial companies. However, in most cases, they will give us the good or service that we want to acquire instead of the money to buy it.

Study a loan for its advantages

When looking for a personal loan, we should not stay with a product, only because it is cheap. In fact, the credits offer a series of advantages that we can benefit from if, when looking for a loan, we pay attention to a series of conditions such as : that it be granted quickly, that it has no opening or study fees, that its Requirements are not very strict, that can be returned ahead of time without any additional cost, including the possibility of requesting a grace period, and so on.

In any case, this is a totally personal and changing aspect, so it will depend on our preferences to opt for one or the other.

How to search for a credit by an entity

When we need financing, the first thing that comes to mind is banks, because they are the main credit providers. However, there are also other entities that can grant us loans with attractive conditions, such as private equity companies or crowdlending platforms, and that also offers a series of advantages that differentiate them from traditional banking (speed of concession, online application, etc).

Therefore, when we look for a loan, it is important that we consider who offers us the most appropriate and beneficial financing for our needs and profile and what benefits it can provide compared to the rest of the entities.