Choose correctly which entity to use, choose a good term and look at interest rates, all are valid recommendations when it comes to choosing a loan that works and helps us meet the goals set. However, something that you don’t usually think about much is the amount to request.
The amount of money that you request is just as important as the other elements of credit, since asking for more or less than you need can have negative consequences for your budget, your credit history and also in fulfilling your objective. But why is it important and what can happen?
If you ask for more:
1. First, you end up spending more than you need. That “ask for extra money just in case”, ends up being something negative, because in the end, find new ways to spend it.
2. The credit is more expensive, as you will have to pay more interest for money that was not necessary to request.
3. You risk being denied credit, as banks review your ability to pay and ask for more than we can afford is one of the main reasons why applications are rejected.
If you ask for less:
- He lacks money to accomplish his goal. All the effort you made to get the financing will not have been enough, because when you make the calculations, you will see that it falls short of cash.
2. He is forced to find another source of money, which means spending more time on applications, documents, etc.
3. Fall into more debt, because you need to find the missing amount. This leads him to request more credits with different interest rates, each with commissions, conditions and extra costs, which ends up in higher costs.
know what the amount you need
Just as it is important to spend some time comparing the loan alternatives and see which one suits you best, you also need to make the corresponding calculations and know what the amount you need. That way, you will avoid many complications.