7 questions you should ask yourself before asking for a cash advance

HOW DOES AN ONLINE CASH ADVANCE WORK? Asking for a bank loan is not limited to filling out an application and waiting to receive the money. The decision to borrow is extremely important and should not be taken lightly. Although a loan can sometimes be helpful, it can also be a drag on a family’s personal finances. To prevent this from happening, if you need money and you are thinking about requesting a loan, we recommend that you ask the following questions first. 

Before asking for a loan, stop to think and ask yourself these questions

  1. Can I wait and save?

Do you really need it now? Could you wait to save? Consider if it is possible to postpone the purchase. If you want to change vehicles and your ability to save is very limited, waiting may not be an option. However, if you want to renovate the furniture of the house, saving for a year could pay cash without resorting to a loan.

  1. How much money do I need?

With the excuse of “Since we put ourselves, to ask for a little more …”, it is quite usual for people who request a loan to end up asking for more money than they really need. If you have no choice but to ask for a loan, you should limit yourself, at most, to the exact amount of money you need. Do not take the opportunity to treat yourself unless you want to end up paying interest for it too.

  1. How much is the most I can pay?

One thing is what you need and quite another you can pay. Maybe you need to change vehicles urgently and the one you like is worth 30,000 euros. The question is: can you pay a loan for that amount? Assuming you have no more debts, our advice is that the monthly loan fee never exceeds 20% of your income.

  1. What are the best loans in the market?

When we buy clothes we assume that we should compare prices in several stores. So, why do not we do it also when what we want to buy is money? The different financial entities sell money in the form of loans. You should select the best loans in the market and choose the one with the best conditions.

  1. How much will I pay interest?

You must calculate the total amount of interest you will pay for the loan. The greater the amount of money you ask for and the longer the term of repayment of the loan, the greater the interest to be paid. Mobile applications of the Loan Master style can help you make these calculations.

  1. What commissions do you have?

As important as the interests to be paid are the possible commissions implicit in the operation: commission for study, opening, management, early repayment … Commissions can make what at first seems like a good loan, really a lousy loan. A lot of eye with them.

  1. Do I understand the fine print of the contract?

You must make sure that you understand everything that is written in the contract that you are going to sign with the bank. If you have doubts or there is something that you do not understand, consult an adviser. Under no circumstances sign something if you do not know what it means. It is better to look heavy asking questions than to regret for years of having signed your signature on that contract.