It is more than likely that you are currently using some type of credit, whether personal, mortgage or perhaps in the form of a credit card. In any case, having access to credit and knowing how to use it correctly is essential for daily life.

Access to credit allows us to finance ourselves to carry out projects, such as buying a car, furniture, going on vacation or buying a house, to list some possibilities. Whatever your function, what we do is bring money from the future by compromising our current income, which is not without risk.

Although credit could complicate our personal finances if we abuse it and we do not know how to use it correctly, well used can make our most unattainable dreams come true. For this reason, it is essential to be very clear when the credit is convenient and when it is not.

Instant bad credit loans online

The typical example in which credit is interesting is for the purchase of a high-priced good, for example, a home or a car. If we had to save the money that a house costs, perhaps we could never acquire it. However, the mortgage loan allows us to finance the purchase of it in several monthly installments for many years.

Coping with an unforeseen event is another reason why we may need access to credit and borrow. Imagine an unexpected illness that forces us to leave work or move to another city or a major breakdown at home that does not cover insurance. In these cases, access to instant bad credit loans from can get us out of trouble.

On other occasions, the credit allows us to unify all our debts. If, for example, we have several outstanding credit cards and a personal loan, perhaps with a single credit and in a single monthly payment we can face all these debts with greater guarantees.

However, there are also cases in which a credit is neither recommended nor necessary. For example, when our indebtedness is excessive and the new credit is only going to make the situation worse. “Living on credit” is not responsible and you have to avoid this temptation in times of difficulty.

On other occasions, when your payment represents a high percentage of our income, for example, more than a third, it is not advisable to obtain it. The reason is simple: with the new debt we could be giving up being able to pay other essential expenses in our day today.

The advantages of credit

Loans, both commercial and mortgage, offer a number of advantages to the people who receive them. These are the main ones:

  1. They allow financing the purchase of a certain good or service at one time when we do not have enough cash at the moment.
  2. They consider our current financial situation so that the credit-issuing entity studies whether we will be able to return it or not.
  3. They are relatively quick to get. Once requested, 48 hours are usually more than enough to be approved or not.
  4. Their interests are not too high compared to other forms of financing.
  5. They are ideal not only for individuals but also for entrepreneurs and companies that, if not for credit, could hardly start their project.

What should I ask myself before requesting a loan?

Once we have clear the situations in which it is advisable to apply for a loan and what are its advantages, if we have decided to apply for one, there are several questions that we have to ask ourselves in advance. The most important are the following six:

  1. Can I apply without my current financial situation getting worse?
  2. What is my monthly payment capacity?
  3. What is your interest rate?
  4. And its associated commissions?
  5. Is any type of guarantee or guarantee required?
  6. In the case of punctual non-payment, what would be the penalty?

If the answers to these questions are satisfactory, we can continue with our request, since we will have acted as responsible consumers and will be using the debt intelligently.