5 keys to not get into debt with mini credits

Today I want to talk about mini-credits , a financial product that does not take too much time with us, that many people are still not clear about its operation and that it is important to know why they are increasingly on everyone’s lips.

A product that has very clear dangers but that well used can solve certain specific economic troubles

debt loan

To avoid these dangers of indebtedness and know how to use them better than the tips and tricks of one of the leading companies in the sector such as PepeDinero.

And that is what you will find next. A series of tips for you to know when you can and when you can not request a mini-loan and you have to do to never get into debt.

Since the mini loans were born, more and more people are choosing this financing system when they need urgent money instead of going through the bank window.

And it is that mini credits offer many advantages: they are fast, easy to hire, they ask for much less requirements than banks, they can be requested anywhere, anytime …

However, one of its big cons is that they are expensive and that, in addition, they have a great risk of over-indebtedness .

Responsibly used mini loans are a good financing system to get extra money for specific unforeseen expenses. However, if we misuse them we can end up enrolled in ASNEF or even in judicial proceedings.

5 keys to use mini credits and enjoy money without taking risks

5 keys to use mini credits and enjoy money without taking risks

1. Ask for just the exact amount of money you will need : The more money you ask, the more you will pay. Most mini loan companies allow you to contract a new loan once we have paid the first one.

Therefore, it is best to ask for the minimum amount of money possible and, if you need a new loan, repay the first one and request another one.

2. Approximate the expiration date at the time you charge : Before requesting a mini credit it is important to plan and make sure that we will not exceed the repayment term.

If we do not pay on time, the lenders will start to apply commissions and the credit can end up being very expensive.

Some companies such as PepeDinero offer the hiring of extensions to be able to extend the term.

3. Do not chain mini credits : Although, as we have already indicated, it is usually possible to contract a new mini loan once you have paid the first one, it is not the most recommended practice.

The mini credits are designed to be used in a timely manner to cover unforeseen expenses, but they are not designed as a source of recurring financing. The more mini loans we ask for, the higher the risk of over-borrowing.

4. Compare : Almost all mini-loan companies have similar performances, but not all of them have the same prices.

Many companies offer discounts, attractive prices and even free credits to attract new customers.

Compare and take advantage of offers to save the most .

5. Contact your lender : Extensions, free early repayments … Many lenders offer facilities to their clients to avoid over-borrowing. If you have any questions or have had any problem with your mini credit and you are not going to pay it in the agreed term, contact your lender and look for solutions.

Although mini loans are relatively simple financial products, since they usually only charge interest and do not apply commissions or require the contracting of related products, as in any other type of loan, it is important to read the contract well and make sure you have understood All terms before applying for the loan .

What happens if I don’t pay my mini loan?

What happens if I don

Although each company has its methods, in general most follow a similar process in case of default:

1. If the due date has arrived and you have not yet paid, you will be contacted by phone / e-mail to remind you of the payment.

2. They will start charging you late payment interest.

3. If you still do not pay, from the 2nd installment you will be included in a list of delinquents such as ASNEF or RAI.

The most advisable thing is to resolve the debt as soon as possible since the interest of late payment will increase the credit more and more and, while we are in ASNEF, we will not be able to access the traditional bank credit.

If we begin to accumulate debt we may even end up in legal proceedings. Therefore, before hiring a mini loan it is vital to make sure that we will be able to pay it on time.

Go Through a Mortgage Simulator

The current situation of low rates and the rise of it, announced for very soon, encourage more and more individuals to want to buy real estate. To prepare for this type of transaction, it is better to opt for a mortgage simulation. Indeed, the latter has advantages but also limits. However, credit simulation is essential before you sign the contract with the lender. It will allow you to evaluate the cost of the loan and will let you know all the possibilities in relation to your loan. It is therefore essential to go through this means, in order to determine if the operation is profitable, before carrying out your real estate acquisition project.


The operation of the mortgage simulation

The operation of the mortgage simulation

Before signing any bank credit agreement, you are advised to go through a mortgage loan simulation. This is a tool that will allow you to estimate your loan, so choose the type of credit that would be best suited to your situation or your profile. To qualify for this type of system, you must enter the amount you want to borrow, the duration of the loan and also the interest rate granted to the credit.

The loan simulator will allow you to calculate the amount of monthly payments that you will have to pay. It is therefore recommended to adjust the elements according to your wishes, so that you can find the best financing to carry out your project. From the information you have entered, the credit simulator can tell you how much money you can borrow. It may happen that you want to vary the duration of your loan and this is relatively feasible, because you will have several simulation results. You can then choose the type of credit that suits you best. For the calculation of the period of payment, it is the monthly payment that you want and the rate of loan that will be filled. Indeed, these elements will allow the tool to calculate the best duration adapted for your loan.


Find the best deal with a mortgage simulation


It should be noted that financial institutes and banks are primarily traders. These organizations will not hesitate to use all their effort to try to seduce you. Especially since they are considered present on the market, which implies that the competition is very tough. Generally, they attract your attention by offering attractive rates of borrowing, that is to say, more competitive than those of their challengers. Faced with this, you may find yourself in a situation where you will not be able to differentiate the reliable offer from the scam. Hence the need to perform the mortgage loan simulation. Thus, you can compare the offers to choose the one that seems advantageous and adapted to your profile. Before you start the project, make sure that the simulator gives you all the necessary and detailed answers to help you make the best decisions. These answers include monthly payments, the insurance you have to pay and the various costs associated with it. The credit simulator has the advantage of being easy to use, in addition to being free and requiring no commitment.


What are the limits of a mortgage simulation?

What are the limits of a mortgage simulation?

A lot of factors are at stake, regarding the amount of credit that the lender can grant you. Which implies that mortgage simulation can be a bit difficult.

Indeed, all simulators do not necessarily take into account all the elements necessary for a consistent simulation. Some sites may only ask you for your monthly net income without requiring the amount of your contribution.

If you have a low income, expect to claim less, because the higher your reward, the more you get into trouble. This is how the 1/3 rule works, repayment monthly payments do not exceed more than 33% of your monthly net income. Like what, your professional situation is important for the constitution of your application for mortgage.

Your ability to save is also a critical factor in estimating the value of your contribution when reviewing your file. Of course, if you are in bank overdraft, it will not work in your favor.