Payday loans were created to fix our lives. If there comes a time when we do not have the necessary amount of savings, but an important goal to meet, we can turn to them to obtain financing and achieve our goal; as long as we understand that month after month, we must return the money in the established fee.
Now, as good as these loans sound, we must be clear that, as our mother or grandmother would say, there is a time for everything. And in life, there are also some moments when applying for a Payday loan will not be a good thing for you, but will end up causing you problems.
But calm down! We are going to tell you what those moments are for you to take the necessary precautions and so, choose the best occasion to request the credit you need.
When you already have another credit
You may wonder what one thing has to do with the other, and in this case, everything! Basically, if you are already paying a loan, it is not recommended that you request another. First, because you can exceed your borrowing capacity and, secondly, because it is not well seen in the eyes of the bank. The best thing in this case is to wait to cancel the first loan and once free, start the application for a new one if you need it.
When you don’t have a key purpose for money
Asking for money just because everyone does it, because it is fun or because you want more liquidity, is not recommended. For that, it is better to work on your savings. If you are going to apply for a loan, it is because you have some goal in mind that you want to meet and you do not have the money to do it. It should not respond to a whim, but to a grounded need. Even if it is a vacation trip, there is nothing wrong, since that is your goal and you know that you can return the money.
When you are overindebted
You may not have any other current credit, but you have several credit cards that are in red or only one with a line of credit that you already used almost completely. In both cases you find yourself over-indebted and adding one more account is crazy and it shouldn’t happen. Keep in mind your borrowing capacity and do not exceed it.
When you lost your job
If you are going to apply for a loan it is essential that you have the necessary income to be able to return the money month after month. If you lost your job, it is not the right time to request financing. It is best to wait a bit until you are financially stable and thus, start our request to meet the goal we have in mind.
Another reason why it is not advisable to do so is that financial institutions place a requirement to support your income when applying for a loan.
When you don’t have the necessary information
You only know that you want the money, but you are not sure of the interest rate they offer you, of the credit conditions, if there is any additional benefit or of the term that would suit you. If you are not sure how a loan works and you have not compared the alternatives to choose the one that really suits you, then it is not recommended that you ask for anything.
The recommendation is that you inform yourself, know and identify the credit that goes most with your profile, and once you have all the necessary data, go ahead!