The most common mistakes in hiring credit and how to avoid them.
Avoiding the following mistakes when hiring your credit is crucial to ensure that it is a useful tool, and not a financial burden. Planning, comparing, and understanding the conditions are fundamental steps for responsible and calm management of your budget.
Avoid these 5 mistakes when hiring your credit
Hiring credit can be a practical solution to achieve financial goals , but it can also bring challenges if not managed well.
Avoiding common mistakes is essential to maintaining financial health and avoiding regrets. Here are the main mistakes and how to avoid them:
Do not compare offers.
Accepting the first proposal may seem convenient, but it could be expensive. Each financial institution offers different conditions.
Avoid: Compare several proposals, analyze interest rates, fees, and other associated costs. Use online simulators to evaluate which offer is more advantageous.
Ignore the APR.
The Annual Effective Annual Rate (APR) includes not only interest, but also fees, mandatory insurance, and other charges. Focusing only on the Nominal Annual Rate (NAR) can be misleading.
How to avoid: Make sure you compare the APR between different proposals, as this rate reflects the actual cost of credit.
Asking for more than necessary
Requesting a higher amount may seem attractive, but it results in higher installments or a longer term, increasing the total cost of the loan.
How to avoid: Carefully evaluate your financial needs and only request the amount necessary for the desired purpose.
4. Not understanding all the conditions of the contract
Many times, people do not read the complete terms of the credit contract or do not understand all the clauses, such as penalties for late payment or early repayment fees.
How to avoid: Read the contract carefully and ask for clarifications from the bank or a credit intermediary whenever necessary.
Focus only on the monthly fee
Opting for a low installment may seem like the best choice, but it often means a longer term, significantly increasing the total cost of credit.
How to avoid: Analyze the balance between a comfortable monthly payment and a term that does not increase the final charges too much. Make simulations to understand the impact of each choice.
In general, you should always avoid hasty decisions. Hiring credit is an important financial commitment, so never decide on impulse or pressure from others. Take the necessary time to understand all implications, with a specialist guiding you.
The credit intermediaries from Poupança no Minuto can help you through this entire process, guide you through the conditions proposed by banks, to choose the best on the market and most suitable for you. This service has no cost, and takes care of all the bureaucratic part, saving you from everything to boost your savings!
Apply for your credit with us now or contact an intermediary directly here.