How and where to get a cheaper loan?


Getting a loan is sometimes a good way out, but you have to be very careful not to get into debt. After all, no one wants to lose control of the monthly budget and have this operation as their only way out.

In these situations, due to little research and evaluation, most consumers usually opt for overdraft or borrow from traditional banks with very high interest rates. However, there are currently options on the market for those who need a cheaper loan, just search a little.

A cheaper loan with lower interest rates and a good repayment period can avoid major financial problems for consumers in the future. It is very important to research different lines of credit to be able to remedy debt with some ease.

To help you choose more advantageous loan options, we have listed a few tips below, check it out!

There are several loan modalities and many options in the Brazilian market.

Avoid taking auto loans

Avoid taking auto loans

Automatic loan arrangements include overdraft and revolving credit card credit, already known to people. Both have interest rates among the highest in the market.

According to Central Bank data, overdraft interest averages 327.95% per year, and revolving credit has an even higher average rate of 490.3% per year. Many consumers often opt for these loans, because of practicality. They are virtually automatic, so customers don’t waste time hiring the service.

Calculate the total loan amount

Calculate the total loan amount

When borrowing, you need to check the total amounts of the installments and compare with other options. Between one bank and another it is possible to find opportunities with cheaper interest rates, less paperwork, which may decrease the total debt burden.

There are several online simulators to compare different types of loans and the same models of different financial institutions.

Use online lending platforms

Use online lending platforms

There are already some options for getting a personal loan online and without red tape. Many websites already work offering this type of credit using technology and being able to make a very accurate analysis of each consumer.

Lending platforms tend to offer lower interest rates, becoming a good option in the market compared to loans offered by traditional banks.

Pay off the loan through automatic debt

Pay off the loan through automatic debt

When you take out a loan, choose to pay it back by automatic debit, so the amount of the installments will be discounted month to month straight from your account, which decreases the interest. Adopting this model has advantages not only for you but also for the bank.

Interest rates can be reduced and the bank has more guarantees of payment, as the money will necessarily be deducted from your account, regardless of your financial situation, but you still have to worry about leaving the amount of the installment. every month in your checking account.

To get a cheaper loan you need to study all the options in the market, this will help to reduce debt and make it easier to repay.


Holiday loans 2019 »Financing a trip in the test!

 If you have only a small amount of money available and you want to travel, you do not always have to forego the dream holiday because you can apply for holiday loans. Some tour operators offer financing, which you can pay off in a few monthly installments.

That is not always cheap. You should therefore use the credit comparison on the Internet and compare the conditions of the banks. You should plan a loan for the holiday carefully. You should consider carefully whether you really want to finance your trip with a loan or if there are other possibilities.

You can not always relax and enjoy a credit-financed trip as you are thinking about repaying. Instead, you should look for a cheaper trip or make some accommodation.

Credit rating is unfavorable, you should consider whether you could book the trip cheaper with another organizer. A savings opportunity are also last-minute travel or early bird discounts.

Installment loan

Installment loan.

You should only use the credit line if.  You have not used it for other expenses and if you only need a small amount of a few hundred euros. Loans of less than $ 1,000 are granted by very few banks. If the price for your trip is $ 2,500 and you have your credit of only $ 2,200, then it is worth considering funding the remaining $ 300 with the credit.

If you want to use the credit line, you should do so only if you are quickly liquid again, for example, if your employer has not paid on time. If you can repay the credit line within a few days, financing with the credit line is an option.

There is no term for the credit line. If money is returned to your account, the amount will be fully or partially balanced.
You pay interest on the credit line only for the amount that you actually use. One disadvantage is compound interest.

The accrued debit interest is added by the bank at the end of the month and also bears interest. The credit line can be expensive and should not be used if possible. Especially for travel prices of several thousand euros, such a credit line is very unfavorable.

Significantly cheaper than a credit line can be a loan from a direct bank.

Significantly cheaper than a credit line can be a loan from a direct bank.

Loan calculator on the internet helps you. With regard to the monthly installments, you can play through several variants by specifying different terms. The rates should be set so that your cash register is not strained too much in each month.

You should still have enough money for current expenses and for unforeseen things. The term and the interest determine how much the installments are.

You should not choose the term for more than two years. If the monthly rates are too high for you, you will have to cut corners when booking the trip or choose a cheaper tour operator. You should only use a holiday loan if you have a good credit rating.

When planning your vacation loan, keep in mind that the interest rates for a vacation loan are also higher for direct banks than for a loan for a car or for furniture.

You can also choose a holiday loan for free use by specifying “free use” for the purpose of use instead of holiday. Again, the interest rates are higher than a loan for a car or for a TV.

A holiday loan for free use, you can apply for at your house bank, but this is much more expensive than a direct bank. Another advantage of a direct bank: You get the loan faster than at your bank.

Individuals who are willing to lend to individuals have joined forces there. You pay your money into a fund from which your loan is granted. In return, these individuals receive interest. The individuals who lend are largely hedged against default.

You must submit a credit application and specify the desired loan amount, 

You must submit a credit application and specify the desired loan amount, 

You should set out your destination and the reasons for the loan to help the lenders make the decision.

On the basis of your loan application, private individuals decide whether they are willing to grant you a loan on the terms specified.

You now need to complete a loan application online. Again, you will get an answer soon after. If you make a commitment, you will need to submit documents to verify your credit rating.

The examination of the documents is carried out by a bank. There is no guarantee of a credit on these credit marketplaces. If your credit rating is very unfavorable, you can also get a cancellation here. Once you have received a commitment, the loan will be paid out within a short period of time.

And have overdrawn your account or if it is bad for your credit rating. You should check if there are alternatives if you want to go on vacation and the money is tight. Such alternatives exist in

  • Looking for cheaper provider
  • Moving the journey
  • Access to call money account
  • Wait until a life insurance or time deposit is due

You can use the travel comparison on the Internet to check whether you can book the same or a similar trip cheaper with another provider. An alternative is to postpone the trip and save an amount each month to pay for the trip.

You may have saved enough money in a year, so you can pay for the trip without credit. If you have a savings account and have enough money saved, you can withdraw money from it for your trip. In the foreseeable future, if a life insurance policy is to be disbursed or the deadline for your deposit account expires, this is a good option to pay for the trip.

Only if the trip can not wait, because it is a honeymoon or other special trip and if you have a good credit, you should pay for the trip with the holiday credit. One option would be to choose a cheaper hotel for a hotel trip or a cheaper cabin for a cruise.