If you are thinking of financing your next vacation, start buying school books or you have an unexpected event and you do not know how to deal with them, you have to ask yourself if applying for a loan is your best option.
When to apply for a microloan?
An advance allows you to solve a specific problem of lack of liquidity, take advantage of a unique opportunity or respond to an unexpected quickly and easily, and return the money with your next payroll or income. Therefore, if you need some extra money for an unforeseen event before collecting your salary, you can ask for one.
Also, before doing so, you must ask yourself if you can return it. That is, if you have regular income and you are going to be able to repay the mini loan to maturity date it may be a way you can take it.
Finally, if you are over 21 years old and reside in Spain, you have a profile suitable for this type of financing.
On the other hand, it is important to bear in mind that there is also another type of loans or advances of other amounts and longer duration. Microprotests are designed for an urgent need and must be used in a timely manner. So, if your financial needs require longer-term solutions, we recommend that you advise well and look for other types of financial products or other ways to obtain money.
When NOT to apply for a mini loan?
Avoid falling into a delinquency file or accumulate debts. Late payment is a problem in the life of any investor, entrepreneur or consumer since being part of any list of delinquencies can lead to problems. Falling into a delinquency file is much easier than you think; a phone bill that you refuse to pay or a company that you can not unsubscribe from, a discharge as a member of a community of neighbors that does not correspond to you, etc. No matter how small your debt is, do not use the microloans to pay them or if you have long-term financial problems.
Also, it is necessary to keep in mind that it is important to consume with head, enough and necessary. Never ask for an advance to buy something you do not really need. Do not let yourself be guided by the attractive discounts, days without VAT or great deals if you do not have the money to make the payments.
For all this, if you are going to ask for a microloan:
- Think for a moment if you really need the money
- Adjust the return date to match the date of your next income
- The total amount to be returned must not exceed 40% of your monthly income
- Do not ask for more money than you really need
- Read carefully the terms of the contract
- Return your mini credit in time to avoid additional expenses