Well-managed credit is a very valuable tool in your personal finances,
Since it can help you improve your productivity and quality of life. The good fulfillment of the payment of the credit, even before the term established in the contract, can give the people benefits in extension of major credits in the same institution or in others. That’s why it’s important to know how to handle a loan and get a good financial reputation. Follow these recommendations to achieve it.
Make a budget
Where you determine your monthly income and expenses (expenses), making sure that there is a positive balance in your income. Experts in finance suggest that the amount of credits you manage should not exceed 30% of your total income. If your budget analysis gives you that extra or more, then you can acquire a credit without problems to meet your timely payment.
To qualify for an easier way to a credit, you must have a good credit history, you can check it on the Credit Bureau page, there you will know the score you have to access a personal loan, mortgage, or automotive. The good management of a credit card or departmental allows to go building this credit history and be able to access loans more easily. Some financial institutions take into account assets such as real estate that you have acquired in advance or a property guarantee that can answer for you if necessary.
Remember not to acquire credits above your ability to pay, because even if you are at the limit, you may have problems paying. Many times financial institutions offer very attractive loans that can help us pay for other things, fulfill a project and maybe take a family vacation. Do not fall into temptation and accept the amount within your means, otherwise the credit could become unpayable. Before accepting the credit, request a run to the institution, so you will see the payments you have to make and in what time and you will know in advance if you can fulfill the responsibility.
Do your best to cover a little more than the minimum payment required. If you have to pay $ 500 pesos each month, think about paying another $ 500 or more to capital, so you’ll end up paying early and with a credit history in your favor, so if you require an emergency loan in the future, it will be more easy to obtain it.
A credit is not money that a bank gives you, it is money that you have to pay if you use it. Do not fall into the bad practice of obtaining a loan to pay another one, because this could generate you problems of liquidity. As with the cash in your wallet, a credit should not buy you things that you with your own money could not pay.
Get organized from the moment the loan is opened and until the end,
It is recommended that you file each one of the account statements that you receive. Although finance companies work for automation, they can incur errors that you can only detect if you have your account statements available so you can claim any wrong information about payments, interest, etc. In the same way, you must notify the financial institution of any account statement you did not receive and know if they are being sent to the wrong address.
If for any reason you fall into problems of compliance with the payment of the credit, come to the financial institution to negotiate. In general, lenders are always in the best position to help their debtors cover the amounts in the best possible way. Thus, you can still have a good credit history in the future.
When you acquire a loan, you acquire a responsibility and its mismanagement directly affects your reputation to access other financial possibilities that could help you grow in the short or medium term in personal projects and also in professionals. To learn how to distinguish why it is good to ask for a loan and when it is better to avoid temptation, consult our blog “When it is convenient to ask for a loan and when it is better not to do it”.